How Much a $200,000 Mortgage Will Cost You (2024)

Your mortgage size depends on the home’s price and the down payment you’re making. If you buy a home priced at $255,000, for example, and put down a 20% down payment ($51,000), you’ll need a mortgage worth $204,000.

You’ll then pay off that balance monthly for the rest of your loan term — which can be 30 years for many homebuyers.

Before you start shopping around, though, you’ll want to get pre-approved. Getting pre-approved will let you know if you can afford a $200,000 mortgage and demonstrate to sellers that you’re a serious buyer.

Monthly payments for a $200,000 mortgage

Monthly mortgage payments always contain two things: principal and interest. In some cases, they might include other costs as well.

Here’s what typically makes up a mortgage payment:

Principal: Principal is money that goes directly toward whittling down your balance.
Interest: This is what you pay to borrow the money. The amount you’ll pay is reflected in your interest rate.
Escrow costs: If you opt to use an escrow account (or your lender requires it), you’ll also have your property taxes, mortgage insurance, and homeowners insurance rolled into your monthly mortgage payment.

On a $200,000, 30-year mortgage with a 6% fixed interest rate, your monthly payment would come out to $1,199 — not including taxes or insurance.

But this can vary greatly depending on your insurance policy, loan type, down payment size, and other factors. Use our mortgage calculator to determine the monthly payment on your potential home loan.

Here’s a more detailed look at what the total monthly payment (principal and interest) would look like for that same $200,000 mortgage with different interest rates:

Interest rate	Monthly payment(15 year)	Monthly payment(30 year)
6.25%	$1,715	$1,231
6.50%	$1,742	$1,264
6.75%	$1,770	$1,297
7.00%	$1,798	$1,331
7.25%	$1,826	$1,364
7.50%	$1,854	$1,398
7.75%	$1,833	$1,433
8.00%	$1,911	$1,468

Interest rate

Monthly payment(15 year)

Monthly payment(30 year)

6.25%

$1,715

$1,231

6.50%

$1,742

$1,264

6.75%

$1,770

$1,297

7.00%

$1,798

$1,331

7.25%

$1,826

$1,364

7.50%

$1,854

$1,398

7.75%

$1,833

$1,433

8.00%

$1,911

$1,468

Check Out: 20- vs. 30-Year Mortgage: Is an Unusual Option Right for You?

Where to get a $200,000 mortgage

To buy a home, you’d traditionally research mortgage lenders, choose several, and then fill out the applications for each. Those lenders would then give you a loan estimate detailing the expected costs of the loan, including closing costs, interest rate, and annual percentage rate (APR). You’d use these to compare your options and choose who to go with.

Shopping around for a mortgage can save you thousands of dollars over the life of your loan. Credible simplifies this process. You can easily compare options from our partner lenders in the table below — it’s free and only takes a few minutes.

What to consider before applying for a $200,000 mortgage

When taking out any mortgage, it’s important to analyze your upfront costs (closing costs, down payment, etc.), as well as how much you’ll be paying to borrow the money over time.

Total interest paid on a $200,000 mortgage

The longer your loan term, the more you’ll pay in interest over the life of the loan.

For example, on a 30-year $200,000 mortgage with a 6% fixed rate, you’ll end up paying $231,676 in interest over the full term.

On a 15-year mortgage with the same balance and rate, you’d pay just $103,788 — saving you $127,888 in interest charges. But keep in mind, your monthly payment would be higher with the 15-year mortgage.

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Amortization schedule on a $200,000 mortgage

A mortgage amortization schedule ensures that your home loan will be paid in full when you make your last scheduled payment.

When you first start paying off your loan, most of your payment goes toward interest. But as years pass, more of your payment is applied to the principal balance.

Here’s the mortgage amortization schedule on a 30-year, $200,000 mortgage with a 6% fixed rate:

Year	Beginning balance	Monthly payment	Total interest paid to date	Total principal paid to date	Remaining balance
1	$200,000.00	$1,199	$11,933.19	$2,456.02	$197,543.98
2	$197,543.98	$1,199	$11,781.71	$2,607.51	$194,936.47
3	$194,936.47	$1,199	$11,620.88	$2,768.33	$192,168.14
4	$192,168.14	$1,199	$11,450.14	$2,939.08	$189,229.06
5	$189,229.06	$1,199	$11,268.86	$3,230.35	$186,108.71
6	$186,108.71	$1,199	$11,076.41	$3,312.81	$182,795.91
7	$182,795.91	$1,199	$10,872.08	$3,517.13	$179,278.77
8	$179,278.77	$1,199	$10,655.15	$3,734.06	$175,544.71
9	$175,544.71	$1,199	$10,424.84	$3,964.37	$171,580.34
10	$171,580.34	$1,199	$10,180.33	$4,208.89	$167,371.45
11	$167,371.45	$1,199	$9,920.73	$4,468.48	$162,902.97
12	$162,902.97	$1,199	$9,645.13	$4,744.09	$158,158.88
13	$158,158.88	$1,199	$9,352.52	$5,036.69	$153,122.19
14	$153,122.19	$1,199	$9,041.87	$5,347.34	$147,774.85
15	$147,774.85	$1,199	$8,712.06	$5,677.16	$142,097.69
16	$142,097.69	$1,199	$8,361.90	$6,027.31	$136,070.38
17	$136,070.38	$1,199	$7,990.15	$6,399.06	$129,671.31
18	$129,671.31	$1,199	$7,595.47	$6,7,93.74	$122,877.57
19	$122,877.57	$1,199	$7,176.45	$7,212.77	$115,664.81
20	$115,664.81	$1,199	$6,731.58	$7,657.63	$108,007.17
21	$108,007.17	$1,199	$6,259.27	$8,129.94	$99,877.23
22	$99,877.23	$1,199	$5,757.84	$8,631.38	$91,245.86
23	$91,245.86	$1,199	$5,225.47	$9,163.74	$82,082.12
24	$82,082.12	$1,199	$4,660.27	$9,728.94	$72,353.17
25	$72,353.17	$1,199	$4,060.21	$10,329.00	$62,024.17
26	$62,024.17	$1,199	$3,423.14	$10,966.07	$51,058.10
27	$51,058.10	$1,199	$2,746.78	$11,642.43	$39,415.67
28	$39,415.67	$1,199	$2,028.70	$12,360.51	$27,055.16
29	$27,055.16	$1,199	$1,266.33	$13,122.88	$13,932.27
30	$13,932.27	$1,199	$456.94	$13,932.27	$0.00

Year

Beginning balance

Monthly payment

Total interest paid to date

Total principal paid to date

Remaining balance

$200,000.00

$1,199

$11,933.19

$2,456.02

$197,543.98

$1,199

$11,781.71

$2,607.51

$194,936.47

$1,199

$11,620.88

$2,768.33

$192,168.14

$1,199

$11,450.14

$2,939.08

$189,229.06

$1,199

$11,268.86

$3,230.35

$186,108.71

$1,199

$11,076.41

$3,312.81

$182,795.91

$1,199

$10,872.08

$3,517.13

$179,278.77

$1,199

$10,655.15

$3,734.06

$175,544.71

$1,199

$10,424.84

$3,964.37

$171,580.34

$1,199

$10,180.33

$4,208.89

$167,371.45

$1,199

$9,920.73

$4,468.48

$162,902.97

$1,199

$9,645.13

$4,744.09

$158,158.88

$1,199

$9,352.52

$5,036.69

$153,122.19

$1,199

$9,041.87

$5,347.34

$147,774.85

$1,199

$8,712.06

$5,677.16

$142,097.69

$1,199

$8,361.90

$6,027.31

$136,070.38

$1,199

$7,990.15

$6,399.06

$129,671.31

$1,199

$7,595.47

$6,7,93.74

$122,877.57

$1,199

$7,176.45

$7,212.77

$115,664.81

$1,199

$6,731.58

$7,657.63

$108,007.17

$1,199

$6,259.27

$8,129.94

$99,877.23

$1,199

$5,757.84

$8,631.38

$91,245.86

$1,199

$5,225.47

$9,163.74

$82,082.12

$1,199

$4,660.27

$9,728.94

$72,353.17

$1,199

$4,060.21

$10,329.00

$62,024.17

$1,199

$3,423.14

$10,966.07

$51,058.10

$1,199

$2,746.78

$11,642.43

$39,415.67

$1,199

$2,028.70

$12,360.51

$27,055.16

$1,199

$1,266.33

$13,122.88

$13,932.27

$1,199

$456.94

$13,932.27

$0.00

Here’s the mortgage amortization schedule on a 15-year, $200,000 mortgage with a 6% fixed rate:

Year	Beginning balance	Monthly payment	Total interest paid to date	Total principal paid to date	Remaining balance
1	$200,000.00	$1,688	$11,769.23	$8,483.33	$191,516.67
2	$191,516.67	$1,688	$11,246.00	$9,006.57	$182,510.10
3	$182,510.10	$1,688	$10,690.49	$9,562.07	$172.948.02
4	$172,948.02	$1,688	$10,100.72	$10,151.84	$162,796.18
5	$162,796.18	$1,688	$9,474.58	$10,777.98	$152,018.20
6	$152,018.20	$1,688	$8,809.82	$11,442.75	$140,575.45
7	$140,575.45	$1,688	$8,104.05	$12,148.51	$128,426.94
8	$128,426.94	$1,688	$7,354.76	$12,897.80	$115,529.13
9	$115,529.13	$1,688	$6,559.25	$13,693.31	$101,835.82
10	$101,835.82	$1,688	$5,714.68	$14,537.89	$87,297.94
11	$87,297.94	$1,688	$4,818.01	$15,434.55	$71,863.38
12	$71,863.38	$1,688	$3,866.04	$16,386.52	$55,476.86
13	$55,476.86	$1,688	$2,855.36	$17,397.21	$38,079.66
14	$38,079.66	$1,688	$1,782.34	$18,470.23	$19,609.43
15	$19,609.43	$1,688	$643.13	$19,609.43	$0.00

Year

Beginning balance

Monthly payment

Total interest paid to date

Total principal paid to date

Remaining balance

$200,000.00

$1,688

$11,769.23

$8,483.33

$191,516.67

$1,688

$11,246.00

$9,006.57

$182,510.10

$1,688

$10,690.49

$9,562.07

$172.948.02

$172,948.02

$1,688

$10,100.72

$10,151.84

$162,796.18

$1,688

$9,474.58

$10,777.98

$152,018.20

$1,688

$8,809.82

$11,442.75

$140,575.45

$1,688

$8,104.05

$12,148.51

$128,426.94

$1,688

$7,354.76

$12,897.80

$115,529.13

$1,688

$6,559.25

$13,693.31

$101,835.82

$1,688

$5,714.68

$14,537.89

$87,297.94

$1,688

$4,818.01

$15,434.55

$71,863.38

$1,688

$3,866.04

$16,386.52

$55,476.86

$1,688

$2,855.36

$17,397.21

$38,079.66

$1,688

$1,782.34

$18,470.23

$19,609.43

$1,688

$643.13

$19,609.43

$0.00

Find Out: 15- vs. 30-Year Mortgage: Which One’s Right for You?

How to get a $200,000 mortgage

Getting a mortgage isn’t as hard as you think. As long as you prepare and break the process down into small, manageable steps, it’s really quite simple. And we’re here to help you break those steps down.

If you’re ready to get started, you can use Credible to compare lender options today.

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Here are the steps to follow to get a mortgage:

Estimate your home budget: Sit down and look at your monthly debts, expenses, and take-home pay. Then, determine what you can afford each month and consider how much of a down payment you can afford.
Check your credit: Pull your credit report, and see where you stand. You’ll get the best interest rates with a good or excellent credit score. But if it’s not quite there, you still have options. If you have a lower score, lots of debt, or late payments, you might want to spend time improving your credit before applying for a loan.
Get pre-approved: Next, you’ll need to request pre-approval with one or more lenders. You can do this by contacting each lender separately.
Compare mortgage rates: Next, determine which loan is the best one for you. You should compare the origination fees, interest rate, and mortgage APR — which reflects the loan’s interest costs as well as its fees. You can also talk to lenders about paying mortgage points, which could lower your interest rate (for a fee).
Negotiate your home purchase: Use your pre-approval letter to make an offer on a house and negotiate the purchase details. Make sure you lean on your real estate agent here, as they can help guide you throughout the process.
Complete your mortgage application: After the seller has accepted your offer, you’ll need to fill out your lender’s full application. This requires more detailed information than your pre-approval did. If you like the terms on the lender’s loan estimate and decide to move forward with the loan, you’ll need to provide documents like tax returns, W-2s, and bank statements.
Wait for full approval: Your loan will move into what’s called underwriting, which means your application is evaluated, your income is verified, and all the numbers are crunched. The lender will also have the home appraised to ensure it’s worth the money you’re looking to borrow for it.
Prep for closing: Once you get your closing date, you’ll need to make sure you have homeowners insurance in place because your lender will likely require it. You should also take some time to review your closing disclosures to make sure you understand the final costs and terms of your loan.
Close on your loan: Finally, you’ll attend your closing appointment, sign your paperwork, and pay your closing costs. And once all is said and done, you’ll get your keys.

Remember that you’re not alone in the home-buying process. Your real estate agent can guide you in your home search and negotiations, and a loan officer can help with mortgage-related tasks.

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FAQs

How Much a $200,000 Mortgage Will Cost You? ›

For a 30-year $200,000 mortgage at a fixed interest rate of 7%, your monthly payments would be about $1,330 (though this figure doesn't include property taxes or homeowners insurance, which could push your payment hundreds of dollars upward).

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How much would a 200K mortgage cost monthly? ›

As far as the simple math goes, a $200,000 home loan at a 7% interest rate on a 30-year term will give you a $1,330.60 monthly payment. That $200K monthly mortgage payment includes the principal and interest.

Learn More Now ›

How much do you need to make to afford a 200K mortgage? ›

What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of $62,000 annually.

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How to pay off 200K mortgage in 5 years? ›

Let's say you currently owe $200,000 on your mortgage and you want to pay it off in 5 years or 60 months. In this case, you'll need to increase your payments to about $3,400 per month.

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How much is a down payment on a 200K house? ›

Conventional mortgages, like the traditional 30-year fixed rate mortgage, usually require at least a 5% down payment. If you're buying a home for $200,000, in this case, you'll need $10,000 to secure a home loan.

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How much income do I need for a 175 000 mortgage? ›

A $175,000 salary is equal to $14,583 per month in gross income; 28 percent of that comes to $4,083. So, according to the 28/36 rule, the maximum amount you should spend on housing is $4,083 per month. The 36 part of the rule, the sum you should not surpass in total debt, is 36 percent of $14,583, which is $5,250.

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Is it worth it to put 20 down on a house? ›

You may qualify for a lower interest rate

Since you're assuming more of the financial risk, a 20% down payment puts you in a great spot to negotiate with your lender for a more favorable mortgage rate. A lower interest rate can save you thousands of dollars over the life of the loan.

Can I afford a 200K house on 50K a year? ›

Assuming you have enough in savings to cover the down payment, closing costs and cost of regular upkeep, yes, you probably could afford a $200K home on a $50K annual salary. Using our example above, the monthly mortgage payment on a $200K home, including taxes and insurance, would be about $1,300.

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How much house can I afford with 40k salary? ›

How much house can I afford on 40K a year?

Annual Salary	$40,000
Home Purchase Budget (25% monthly income on mortgage payments)	$103,800
Home Purchase Budget (28% monthly income)	$109,500
Home Purchase Budget (36% monthly income)	$141,100
Home Purchase Budget (40% of monthly income)	$156,900

4 more rows

May 10, 2023

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Can I afford a 500k house if I make 200K? ›

A mortgage on 200k salary, using the 2.5 rule, means you could afford $500,000 ($200,00 x 2.5). With a 4.5 percent interest rate and a 30-year term, your monthly payment would be $2533 and you'd pay $912,034 over the life of the mortgage due to interest.

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What happens if I pay an extra $1000 a month on my mortgage? ›

Since your interest is calculated on your remaining loan balance, making additional principal payments every month will significantly reduce your interest payments over the life of the loan. By paying more principal each month, you incrementally lower the principal balance and interest charged on it.

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What happens if I pay 2 extra mortgage payments a year? ›

Just making two extra mortgage payments a year can save you tens of thousands of dollars and cut years off your loan.

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How to take 10 years off a 30 year mortgage? ›

Tips to pay off mortgage early

Refinance your mortgage. ...
Make extra mortgage payments. ...
Make one extra mortgage payment each year. ...
Round up your mortgage payments. ...
Try the dollar-a-month plan. ...
Use unexpected income.

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How much is a 200k 30-year mortgage payment? ›

On a $200,000, 30-year mortgage with a 6% fixed interest rate, your monthly payment would come out to $1,199 — not including taxes or insurance. But this can vary greatly depending on your insurance policy, loan type, down payment size, and other factors.

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How much house can I afford on a 70k salary? ›

Assuming a 20 percent down payment on a 30-year fixed-rate loan at an interest rate of 7 percent, you can afford the payments on a $240,000 home, according to Bankrate's mortgage calculator.

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What credit score is needed to buy a house? ›

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

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How much is a 150k mortgage per month? ›

A $150,000 30-year mortgage with a 6% interest rate comes with about an $899 monthly payment. The exact costs will depend on your loan's term and other details.

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How much is a 300K mortgage per month? ›

How much is a monthly payment on a 300K house? The monthly payment on a $300K house will range from $1,850 to $2,585. Your monthly payment depends on what state you're buying in, your interest rate, your down payment, homeowner's insurance, and other factors.

How much is a $500,000 mortgage for 30 years? ›

The monthly cost of a $500,000 mortgage is $3,360.16, assuming a 30-year loan term and a 7.1% interest rate. Over the course of a year, you would pay $40,321.92 in combined principal and interest payments.

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How much house can I afford for $1000 a month? ›

These days — with conventional mortgage rates running about 4% — a $1,000 monthly Principle & Interest (P&I) payment gets you a 30-year loan of about $210,000. Assuming a 10% downpayment, that's a $235,000 home.

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