Mortgage Payment on a $300,000 Home (Monthly Cost Breakdown)
A mortgage payment on a $300,000 home typically ranges between $1,800 and $2,400 per month, depending on your interest rate and down payment. This number represents your total monthly housing cost, which includes the loan repayment, interest, property taxes, and homeowners insurance.
In this guide, we’ll look at real-world scenarios for a $300k house in 2026. We’ll show you how different interest rates change the math and how your choice of loan length can save you thousands. Understanding these numbers is the first step in mastering how mortgage payments are calculated.
The Impact of Interest Rates on a $300k Loan
Even though the house price is fixed, your monthly bill is not. Your credit score and the current market determine your interest rate, which is the “rent” you pay to borrow that $300,000. On a 30-year fixed loan, even a 1% difference in your rate can change your payment by hundreds of dollars.
This is why it’s helpful to see how amortization works. At the start of your loan, most of your payment goes toward interest, not the house itself. Finding the lowest rate possible is the best way to keep your monthly cost down.
Quick Tip: Use our Home Page Calculator to test how a lower credit score might increase your rate and shrink your buying power.
Takeaway: The “price” of the house matters, but the “price of the money” (interest) determines your monthly lifestyle.
Scenario Comparison: 30-Year vs. 15-Year
One of the biggest factors in a mortgage payment on a $300,000 home is the loan term. While 30 years is the most popular, a 15-year term is a massive wealth-builder. Here is the breakdown for a $300k home with a 5% down payment ($285,000 loan amount) at a 6.5% interest rate:
| Feature | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Monthly (P+I) | $1,801 | $2,481 |
| Total Interest | $363,501 | $161,514 |
| Potential Savings | $0 | $201,987 |
As you can see, the 15-year payment is higher, but you save over $200k in interest! You can explore more about this in our guide on how loan term affects monthly payments.
Takeaway: If you can afford the higher monthly bill, the 15-year mortgage is the fastest way to own your home free and clear.
Don’t Forget Taxes and Insurance
When people search for a mortgage payment on a $300,000 home, they often forget the “extra” costs. Your lender will likely require you to pay property taxes and homeowners insurance as part of your monthly bill. This is known as PITI.
On a $300,000 house, you should expect to add roughly $300 to $500 per month for these items. Also, if you put down less than 20%, you will have to pay for PMI. To see a full estimate that includes these costs, use our calculator with taxes and insurance.
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Frequently Asked Questions (FAQ)
For a conventional loan, the minimum is usually 3% ($9,000). For an FHA loan, it is 3.5% ($10,500). However, if you want to avoid PMI, you would need to put down 20%, which is $60,000. You can see the difference in our no-PMI calculator.
Most lenders suggest that your total housing payment should not exceed 28% to 36% of your gross monthly income. For a $300,000 home with a payment of roughly $2,200 (including taxes), a household income of around $75,000 to $85,000 is typically recommended.
The best way is to provide a larger down payment or wait for interest rates to drop. You can also look into how extra payments reduce interest to shorten your loan life, which saves money in the long run even if it doesn’t lower your current monthly bill.
Ready to see your specific numbers? Contact us if you have questions here.