Monthly Payments For a $150,000 Mortgage
|
|
Credit Score |
Down payment |
Interest Rate |
Monthly Payment (30 year loan) |
|
Borrower 1 |
620 |
$7,500 (5%) |
6.5% |
$901 |
|
Borrower 2 |
690 |
$15,000 (10%) |
5.5% |
$756 |
|
Borrower 3 |
750 |
$30,000 (20%) |
4.5% |
$641 |
As you can see, the monthly payment changes dramatically depending on the size of the outstanding principal and the interest rate offered by the lender. These are just ballpark figures and may vary depending on the lender and the loan terms.
Total Interest Paid on a $150,000 Mortgage
The total amount of interest you pay will also vary depending on the interest rate you can secure from a lender. Assuming that all three of the borrowers in the above example each made their monthly payments on time and didn't refinance or make other changes to the loan, here is what they would each pay in total interest:
- Borrower 1: $181,751
- Borrower 2: $105,069
- Borrower 3: $62,133
As you can see, the first borrower will pay significantly more in interest over the loan life than the other two (almost 3x more than the third). This is because they had a substantially higher interest rate and principal balance, which means that a larger percentage of their monthly payment is going toward paying the interest. That's why it's essential to get your finances in order before applying for a loan, so you pay as little interest as possible.
Keep in mind the above figures represent a 30-year fixed-rate loan. Here is what each borrower would pay with a 15-year fixed-rate loan:
- Borrower 1: $80,939
- Borrower 2: $48,066
- Borrower 3: $29,166
So, the sooner you're able to pay off the loan, the less total interest you'll pay because the principal will be shrinking by a larger amount with every payment.
$150,000 Mortgage Amortization Schedule
You can use an amortization schedule if you want to keep track of how much interest you're paying each month. Amortization is the process of paying off a loan in equal installments. An amortization schedule will track how much of the principal you've paid down and how much interest you pay each month.
Here is an example of an amortization schedule for Borrower 2 in the previous examples.
|
Month |
Interest |
Principal |
Remaining Balance |
Total Interest Paid |
|
January |
$478.13 |
$167.90 |
$127,332.10 |
$478.13 |
|
February |
$477.50 |
$168.53 |
$127,163.57 |
$955.62 |
|
March |
$476.86 |
$169.16 |
$126,994.41 |
$1,432.48 |
|
April |
$476.23 |
$169.79 |
$126,824.62 |
$1,908.71 |
|
May |
$475.59 |
$170.43 |
$126,654.19 |
$2,384.31 |
|
June |
$474.95 |
$171.07 |
$126,483.12 |
$2,859.26 |
|
July |
$474.31 |
$171.71 |
$126,311.40 |
$3,333.57 |
|
August |
$473.67 |
$172.36 |
$126,139.05 |
$3,807.24 |
|
September |
$473.02 |
$173.00 |
$125,966.05 |
$4,280.26 |
|
October |
$472.37 |
$173.65 |
$125,792.39 |
$4,752.63 |
|
November |
$471.72 |
$174.30 |
$125,618.09 |
$5,224.35 |
|
December |
$471.07 |
$174.96 |
$125,443.14 |
$5,695.42 |
As you can see, as the principal decreases, so does the amount of interest paid with each installment. So over time, a larger percentage of your monthly payment will go toward the principal until the loan is completely paid off. You can continue this chart for the remainder of the loan to see how much total interest is paid over time.
How To Get a $150,000 Mortgage
It's relatively easy to get a $150,000 mortgage as long as you meet the qualifications. All you have to do is gather your financial documents, save for a down payment and apply for a loan. Most conventional lenders like to see a credit score of 680 or above and will check your income statements to ensure you make enough money to afford the loan.
Exact requirements vary from lender to lender, but most experts recommend that you don't spend more than 28% of your monthly income on housing expenses. So, to safely afford a $150,000 mortgage, most experts recommend making at least $40,000 to $50,000 per year to account for other costs like taxes and insurance.
Plus, you want to save for a down payment and closing costs. Most lenders recommend putting down 20%, which is $30,000. But there are loan programs where less is required. Also, remember to budget for closing costs, which are usually around 3-6% of the total sales price. So, a $150,000 mortgage would be an extra $4500 - $9000 at closing.
Once you've gathered your financial information and saved for a down payment, all that's left to do is apply for a loan.
Where To Get a $150,000 Mortgage
You can get a $150,000 loan from nearly any traditional lender, such as a bank or credit union. Most people tend to go with the institution where they do their banking, although it's always wise to shop around and look for the best deals possible.
You can always try a government loan program if you don't qualify for a conventional mortgage. These loans still come from a traditional lender such as a bank, but the government insures them, so they feature laxer financial and credit requirements.
Many modern home buyers also use online mortgage lenders because they offer a fast approval process and competitive rates. Another option is to contact a mortgage broker, who can show you several options and recommend a loan that is best for your situation. The smartest thing to do is look at as many options as possible to determine who offers the best rates and loan terms.
Monthly Payments for $150k Mortgage Bottom Line
The monthly payment for a $150,000 mortgage varies based on the loan term and interest rate. For a 30-year fixed-rate mortgage at 6.5%, the payment is around $900, while for a 15-year fixed-rate mortgage at the same interest rate, it is around $1,270. To get an exact figure tailored to your specific situation, including taxes, insurance, and potential PMI, it's advisable to use a detailed mortgage calculator or consult with a mortgage lender.