Quick answer
How much will my mortgage payment be?
On a $400,000 home with 20% down and a 30-year fixed rate of 7.40%, principal and interest is about $2,216 a month. With 0.9% property tax and $1,800 a year of insurance, the full mortgage payment is about $2,666. With only 10% down, PMI of about $150 a month brings it to about $3,093.
- Average 30-yr rate: 7.40% (Freddie Mac, Oct 2026)
- PMI: usually 0.3–1.5% a year below 20% down; ends at 78% LTV
- Rule of thumb: housing costs under 28% of gross income
What is included in a mortgage payment?
- Principal and interest: repays the loan at your fixed rate
- Property tax: about 0.9% of home value a year on average in the US, varying widely by county
- Homeowners insurance: usually paid monthly through escrow
- PMI: required on conventional loans with less than 20% down
- HOA dues: if the property is in a homeowners association
How is a monthly mortgage payment calculated?
The principal and interest part uses the standard fixed-rate formula, where L is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments:
Example: a $400,000 home with 20% down leaves a $320,000 loan. At 7.40% for 30 years, principal and interest is about $2,216 a month. Property tax at 0.9% adds $300 and $1,800 a year of insurance adds $150, so the mortgage calculator shows about $2,666 a month before any HOA dues.
How does PMI change your house payment?
Put down less than 20% and lenders usually add private mortgage insurance. With 10% down, the loan is $360,000 and principal and interest rises to about $2,493. PMI at 0.5% a year adds $150 a month, for a total of about $3,093. In this example PMI lasts about 10 years, until the balance falls to 78% of the home price, and costs about $18,000 in all. The calculator works out that date for you.
How do you read the amortization schedule?
The schedule shows, year by year, how much of your payments went to principal and to interest, and the balance left. Early payments are mostly interest. On the $320,000 loan above, year one repays about $3,008 of principal and $23,579 of interest, and you still owe about $277,129 after 10 years.
| $320,000 at 7.40% | Principal and interest | Total interest |
|---|---|---|
| 30-year term | $2,216 a month | $477,622 |
| 15-year term | $2,948 a month | $210,691 |
Rates in these examples are illustrations. Your lender’s quote depends on your credit score, down payment and loan type.
Frequently asked questions
What is the monthly payment on a $400,000 house?
With 20% down at 7.40% for 30 years, principal and interest is about $2,216 a month. Adding 0.9% property tax and $1,800 a year of insurance brings it to about $2,666.
What are mortgage rates right now?
Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.40% in mid-October 2026. Your rate depends on your credit score, down payment and loan type.
When does PMI go away?
On a conventional loan you can ask to cancel PMI when your balance reaches 80% of the original home value, and it ends automatically at 78% if your payments are current.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher monthly payment but a lower rate and far less total interest. A 30-year loan keeps payments lower and more flexible.
How much house can I afford?
A common guideline is to keep housing costs (principal, interest, taxes and insurance) under about 28% of your gross monthly income, and all debt payments under about 36%.
What is the monthly payment on a $300,000 mortgage?
On a $300,000 loan at 7.40% for 30 years, principal and interest is about $2,077 a month, and you’d pay about $447,770 in interest over the full term. Property tax, insurance and any PMI come on top.
What is an amortization schedule?
It’s a table showing how each payment splits between interest and principal and how your balance falls. On a $320,000 loan at 7.40% for 30 years, you repay only about $3,008 of principal in the first year and still owe about $277,129 after 10 years.