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

A mortgage payment for a $350,000 house involves more than just repaying the loan. Homeownership includes various financial obligations beyond the purchase price. Understanding these costs helps prospective buyers accurately budget their monthly expenses. The total monthly payment combines several distinct components.

Components of a Monthly Mortgage Payment

A monthly mortgage payment typically consists of four main elements, often called PITI: Principal, Interest, Property Taxes, and Homeowners Insurance. These components determine a significant portion of a homeowner’s recurring financial outlay. For a $350,000 home, specific amounts vary, but general estimates provide a clear picture.

Principal and Interest (P&I)

Principal and interest (P&I) repay the loan amount and the cost of borrowing. For a $350,000 house with a 20% down payment, the loan is $280,000. With an average 30-year fixed interest rate of 6.59% as of late August 2025, the monthly P&I would be about $1,770. This portion remains consistent over the loan’s term.

Property Taxes

Property taxes are assessed by local governments for public services. They are generally included in the monthly mortgage payment via an escrow account. Rates vary by location. For a $350,000 home, monthly costs might range from $300 to $500. The national average effective rate is around 0.90% to 0.909% annually, meaning annual taxes could be $3,150 to $3,181, or about $262 to $265 per month.

Homeowners Insurance

Homeowners insurance protects the property and belongings against perils like fire, theft, and natural disasters. Lenders typically require it. Premiums are often collected monthly into an escrow account. The average annual cost for a $350,000 home is about $1,951, or $162.58 per month. Costs vary widely based on location, age, and coverage limits.

Private Mortgage Insurance (PMI)

Private Mortgage Insurance (PMI) is typically required with a down payment of less than 20%. It protects the lender if the borrower defaults. PMI is 0.2% to 2% of the loan amount annually. For a $350,000 home with a 5% down payment ($17,500), the loan is $332,500, and PMI could add $100 to $200 per month. This cost can be removed once sufficient equity is built, often when the loan-to-value ratio reaches 78%.

Factors Influencing Your Payment

Several factors directly impact your monthly mortgage payment for a $350,000 house. These variables determine the principal and interest amount, plus taxes and insurance costs. Understanding these influences allows for a more accurate estimation of potential monthly housing expenses.

Down Payment Size

Down payment size significantly affects the mortgage’s principal and interest. A larger down payment reduces the amount borrowed, lowering the monthly payment and total interest. Putting down 20% or more typically eliminates Private Mortgage Insurance, saving a substantial monthly expense. Conversely, a smaller down payment increases the loan amount and necessitates PMI, raising the overall monthly cost.

Interest Rate

The prevailing interest rate plays a substantial role in determining the monthly principal and interest payment. Higher rates result in larger monthly payments and more interest paid over the loan term. Interest rates are influenced by economic conditions and can change daily, directly impacting affordability. A borrower’s creditworthiness also influences the interest rate offered.

Loan Term

The loan term, or repayment length, affects the monthly payment. Common terms include 15-year and 30-year fixed mortgages. A shorter term, like 15 years, results in higher monthly payments but less total interest paid. A 30-year term offers lower monthly payments, providing budget flexibility, but accrues more interest.

Credit Score

A borrower’s credit score determines the interest rate they qualify for. Higher scores are perceived as lower risk by lenders, often resulting in more favorable interest rates and reduced monthly payments. A lower score can lead to a higher interest rate, increasing the mortgage cost. Maintaining a strong credit history is advantageous when seeking a home loan.

Geographical Location

The property’s geographical location influences the monthly payment, primarily through varying property taxes and homeowners insurance costs. Property tax rates are set by local jurisdictions and differ widely. Homeowners insurance premiums are impacted by local risk factors, such as natural disasters or crime rates, leading to differing costs for a $350,000 home in different regions.

Understanding Additional Costs of Homeownership

Beyond the monthly mortgage payment, homeownership involves other significant financial considerations. These costs are typically paid separately and cover various aspects of buying and maintaining a home. Understanding these expenses provides a more complete financial picture for prospective homeowners.

Closing Costs

Closing costs are one-time fees paid at the culmination of the home purchase. These expenses cover services related to finalizing the mortgage and transferring property ownership.

• Loan origination fees
• Appraisal fees
• Title insurance
• Attorney fees

For a $350,000 home, these costs typically range from 2% to 5% of the purchase price, amounting to $7,000 to $17,500. These funds are due upfront, separate from the down payment.

Ongoing Home Maintenance and Repairs

Ongoing home maintenance and repairs are another financial commitment. Homeowners are responsible for all upkeep, from routine tasks like lawn care to major repairs such as roof replacement. A common guideline suggests budgeting at least 1% of the home’s value annually for maintenance. For a $350,000 home, this is around $3,500 per year, or $291 per month. This budget helps cover anticipated upkeep and unforeseen issues.

Homeowners Association (HOA) Fees

Homeowners Association (HOA) fees apply to properties within HOA-managed communities. These regular fees, typically paid monthly or annually, cover maintenance of shared amenities and common areas like:

• Swimming pools
• Clubhouses
• Landscaping
• Security services

HOA fees can range from $170 to $300 per month or more, depending on services provided. These fees are distinct from the mortgage payment and are a mandatory cost for residents in HOA-governed properties.