How Much is a Monthly Mortgage Payment on a $300K House?

July 15, 2025 by Chibuzo Ezeokeke

No matter the state of the housing market, buying a house is an expensive endeavor. Unless you’ve got a few hundred thousand dollars lying around and plan on buying a house in cash, you’ll probably need to take out a mortgage to make this purchase. But how much will that cost you when all is said and done?

In this Redfin article, we’ll break down how much a mortgage on a $300,000 house costs, both on a monthly basis and in the long run. Whether you take out a 30-year mortgage on a house in Houston or a 15-year mortgage on a home in Louisville, find out how much you’ll likely end up paying.

How much is the monthly mortgage payment on a $300K house?

Your monthly mortgage payment is more than just repaying the loan, it includes several costs that can vary based on where you live and the type of mortgage you choose. While principal and interest make up the bulk of your payment, additional expenses like property taxes and homeowners insurance can significantly impact your total monthly cost.

Here’s what’s typically included in your mortgage payment:

Principal and interest: The amount borrowed and the interest charged by your lender
Property taxes: Set by your local government and vary based on location
Homeowners insurance: Protects your home against damage and liability
Private mortgage insurance (PMI): Required if your down payment is less than 20%

The exact amount you’ll pay each month depends on your interest rate, loan type, and down payment size. Below, we’ll break down estimated monthly mortgage payments for a $300,000 home based on different down payment amounts.

Example monthly payments for a $300K home (30-year loan at 7.125% interest)

These estimates include principal, interest, and average additional costs like taxes and insurance.

Down payment	Loan amount	Monthly payment (principal + interest)	Estimated total payment (including taxes + insurance)
20% ($60K)	$240,000	$1,617	$2,049
10% ($30K)	$270,000	$1,819	$2,420
5% ($15K)	$285,000	$1,920	$2,531

Example monthly payments for a $300K home (15-year loan at 6.25% interest)

Down payment	Loan amount	Monthly payment (principal + interest)	Estimated total payment (including taxes + insurance)
20% ($60K)	$240,000	$2,058	$2,490
10% ($30K)	$270,000	$2,315	$2,916
5% ($15K)	$285,000	$2,444	$3,054

Property taxes and insurance vary by location, so actual monthly costs may differ.

Want a more tailored estimate? Use the Redfin Mortgage Calculator.

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How interest rates affect your mortgage payment

Interest rates have a major impact on your mortgage payment. Even a small increase can significantly raise the total amount you pay over the life of your loan.

Example: monthly payment at different interest rates

For a 30-year loan with a $240K loan amount, here’s how your interest rate affects total costs:

Interest rate	Monthly payment (P&I)	Total interest paid over 30 years
6%	$1,438	$277,765
6.5%	$1,500	$306,000
7%	$1,600	$335,894
8%	$1,764	$395,652

A 1% increase in interest (from 6.5% to 7.5%) could cost you over $60,000 more in interest over the life of the loan. A higher credit score and a larger down payment can help you secure a lower rate, reducing your total costs.

How loan type affects your mortgage payment

The type of mortgage you choose impacts your monthly payment and total interest paid over time. Here’s how the most common options compare:

30-year fixed mortgage

Monthly payment (P&I)	Pros	Cons	Best for:
$1,617	Lower monthly payments Easier to qualify for	Higher total interest Slower equity build	Buyers who want to spread payments over a longer time period

15-year fixed mortgage

Monthly payment (P&I)	Pros	Cons	Best for:
$2,058	Pay off your home faster Less total interest	Higher monthly payments May be harder to qualify	Buyers who can afford larger monthly payments and want to save on interest

Adjustable rate mortgage (ARM)

Monthly payment (P&I)	Pros	Cons	Best for:
$1,617 (initially)	Lower initial payments Good for short-term buyers	Payments can rise after the fixed period ends Unpredictable long-term costs	Buyers planning to sell or refinance before rates adjust

How much should you put down on a $300K house?

Your down payment impacts your loan amount, monthly payment, and whether you’ll need private mortgage insurance (PMI). A higher down payment reduces your loan size, lowers your interest costs, and eliminates PMI if you put down at least 20%.

Common down payment options

20% down ($60K) – No PMI, lower monthly payments, and less interest paid over time
10% down ($30K) – PMI required, moderate monthly payment
5% down ($15K) – PMI required, highest monthly payment, and most interest paid

If you can’t afford 20% down, that’s ok – many lenders offer low-down-payment loan options. FHA loans require as little as 3.5% down, and VA or USDA loans may allow 0% down for eligible buyers.

A higher down payment saves money long-term, but a smaller one can help you buy a home sooner.

Income needed for a $300K home (30-year loan at 6.5% interest)

Before buying a home, it’s important to determine how much you can afford based on your income and expenses. Lenders often use the 28/36 rule to assess affordability – this guideline suggests that your monthly housing costs should not exceed 28% of your gross income, while total debt payments (including loans and credit cards) should stay under 36%.

Below is a breakdown of the income typically needed to afford a $300,000 home based on the 28/36 rule.

Gross monthly income	Affordable mortgage payment	Can afford a $300K home?
$5,500 ($66K/year)	~$1,540	Probably not
$6,900 ($83K/year)	~$1,932	Yes
$7,500 ($90K/year)	~$2,100	Yes (more comfortably)

If your income is below this range, you may still qualify by:

Making a larger down payment to reduce your loan amount
Improving your credit score to get a lower interest rate
Reducing other debts to improve your debt-to-income ratio

A higher down payment or lower interest rate can help make a $300K home more affordable.

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Final thoughts

Your mortgage payment on a $300,000 home depends on interest rates, loan type, and down payment size. A higher down payment and lower interest rate can save you hundreds per month and tens of thousands over time.

Before buying, consider:

How much you can afford based on your income and debts
Current interest rates and how they impact payments
The best loan type for your budget and financial goals

Buying a home is a big step and understanding the numbers helps you take it with confidence.

If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our Editorial Guidelines here.

Chibuzo Ezeokeke

Chibuzo has spent more than three years on Redfin’s Content Marketing team, specializing in homeownership tips and the move-in process. He creates practical, easy-to-follow resources that help new homeowners navigate everything from settling into their first property to building long-term equity. When he’s not writing about homeownership, Chibuzo enjoys running, playing basketball, and envisioning his dream Mediterranean-style home with a spacious kitchen and plenty of natural light.

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