How Much Is a Mortgage on a $350k House?

Purchasing a home, especially a $350,000 property, involves more than just the listing price. The true cost of homeownership includes various ongoing and one-time expenses beyond the initial purchase. Prospective buyers must analyze how factors like loan terms, interest rates, and property-specific costs determine the actual monthly financial commitment. Understanding these components helps in making informed decisions about affordability and long-term budgeting.

Deconstructing Your Monthly Mortgage Payment

A typical monthly mortgage payment is comprised of several distinct components, often summarized by the acronym PITI: Principal, Interest, Taxes, and Insurance. The principal and interest portion directly addresses the loan itself. The principal reduces the outstanding loan balance, while the interest is the cost of borrowing the money, calculated based on the loan amount, interest rate, and repayment term.

Property taxes represent a significant portion of the monthly payment, collected by the lender and held in an escrow account before being paid to local governmental authorities. These taxes fund public services and vary considerably depending on the property’s location and its assessed value. Homeowner’s insurance, which protects the property from damage, is another component collected by the lender and paid from escrow. Lenders usually require this insurance to safeguard their investment.

Private Mortgage Insurance (PMI) is an additional cost for conventional loans when the down payment is less than 20% of the home’s purchase price. This insurance protects the lender if the borrower defaults. PMI can often be removed once the loan balance reaches 80% of the home’s original value. Federal Housing Administration (FHA) loans require Mortgage Insurance Premiums (MIP), which include an upfront and an annual premium. Unlike PMI, FHA MIP can remain for the entire loan term if the initial loan-to-value (LTV) ratio is greater than 90%. Veterans Affairs (VA) loans do not require monthly mortgage insurance, instead charging a one-time VA funding fee that can be financed into the loan.

Factors Influencing Your Mortgage Cost

The interest rate primarily determines the mortgage payment, directly influencing the amount of interest paid over the loan’s lifetime. Market conditions, the specific loan product chosen (such as a fixed-rate or adjustable-rate mortgage), and the borrower’s credit score all play a role in the rate offered. A higher credit score leads to a more favorable interest rate, which can reduce monthly payments and total interest paid. As of late August 2025, the average interest rate for a 30-year fixed mortgage is around 6.55%.

The chosen loan term also impacts the monthly payment and the total cost of the loan. A shorter term, such as a 15-year mortgage, features higher monthly payments but results in less interest paid over the life of the loan compared to a longer 30-year term. Conversely, a 30-year mortgage spreads payments over a longer period, resulting in lower monthly installments but a greater total interest expense. The size of the down payment is another factor; a larger down payment reduces the principal loan amount, which in turn lowers the monthly principal and interest payment.

Property tax rates, set by local municipalities, vary widely across different regions. These rates are applied to the home’s assessed value and directly contribute to the property tax component of the monthly payment. National average effective property tax rates hover around 0.90% of a home’s value, but this can range from 0.27% to over 2.33% depending on the state and locality. Homeowner’s insurance premiums are affected by the property’s location, age, construction type, and the level of coverage selected. For a $350,000 dwelling, the average annual homeowner’s insurance cost is approximately $1,951, though this can vary based on various factors.

Beyond the Monthly Payment: Other Homeownership Expenses

Beyond the regular monthly mortgage payment, prospective homeowners should account for several other expenses that contribute to the overall cost of owning a $350,000 house. Closing costs are one-time expenses paid at the time of purchase. These fees encompass a variety of charges, such as loan origination fees, appraisal fees, title insurance, and legal fees. Closing costs range from 2% to 5% of the total loan amount. For a $350,000 home, these costs could range from $7,000 to $17,500 based on the loan amount.

Homeowners Association (HOA) fees are another recurring cost for properties located within certain communities, condominiums, or planned developments. These fees, which can be monthly, quarterly, or annual, cover the maintenance and upkeep of common areas and amenities, such as landscaping, pools, or shared recreational facilities. Nationally, average HOA fees range from $259 to $293 per month, though they can vary based on location and the amenities provided, with some areas seeing fees from $100 to over $1,000 per month.

Ongoing maintenance and repairs are an unavoidable aspect of homeownership. Homeowners are responsible for the upkeep of their property, which includes both routine maintenance and unexpected repairs. It is recommended to budget between 1% and 4% of the home’s value annually for these expenses. For a $350,000 home, this translates to an estimated annual cost of $3,500 to $14,000 for items like roof repairs, HVAC servicing, appliance replacement, or general landscaping. Utilities, such as electricity, gas, water, and internet services, represent additional ongoing expenses that factor into the total monthly cost of living in the home.

Calculating Your Potential Mortgage Payment

Estimating a potential mortgage payment for a $350,000 home requires gathering specific financial and property-related data. Begin by determining your target down payment amount, which directly affects the loan principal. Consider your estimated credit score range and the desired loan term, as these influence the interest rate you might qualify for. Researching local property tax rates and obtaining estimates for homeowner’s insurance for a $350,000 house in your preferred area are also important steps.

Online mortgage calculators serve as valuable tools for approximating monthly payments. These calculators require inputs such as the loan amount, the current estimated interest rate, the chosen loan term, and the estimated annual costs for property taxes and homeowner’s insurance.

For example, on a $350,000 home with a 20% down payment ($70,000), the loan amount would be $280,000. Using an average 30-year fixed interest rate of 6.55%, the principal and interest payment would be approximately $1,775 per month. Adding a national average property tax of 0.90% ($3,150 annually or about $263 monthly) and average homeowner’s insurance of $1,951 annually (approximately $163 monthly) results in an estimated total monthly payment of about $2,201. For a more precise figure tailored to your unique financial profile and current market conditions, obtaining a pre-approval from a lender is a highly recommended step.