How Much is the Monthly Payment for a 300K Mortgage? 

How to Qualify for a $300,000 Mortgage

Before shopping for a loan, it’s important to be sure that you qualify. While the exact requirements to obtain a $300,000 mortgage will vary depending on the lender, in general, you will need a decent credit score and enough income to pay for the loan. Here are the minimum credit scores required for several popular loan products.

• Conventional loan: 620 or higher
• FHA: 580 to 620 
• VA: 580
• USDA: 640 

The income requirement will also vary depending on the lender, what type of loan you get, and how much debt you have. But most experts recommend that you don’t spend more than 28% of your monthly income on your mortgage payment. So, if your mortgage payment is $2,000, you should make around $86,000 per year to qualify. 

Where to Shop for a $300,000 Mortgage

You can get a $300,000 mortgage from virtually any lender that offers home loans. Although most people get a mortgage wherever they do their banking, you can also look into other options, such as credit unions and online mortgage providers.

Each lender has its own unique advantages and disadvantages. For instance, banks offer a wide variety of products and competitive rates but also tend to feature stricter requirements. Credit unions offer low rates and personalized service, but you must be a member and do your banking with them. Online lenders offer fast access to funds and laxer approval requirements, but they also tend to carry higher fees. So, make sure to look at many different options and find the best for your situation. 

What is the Monthly Payment for a $300,000 Mortgage?

Your monthly mortgage payment will vary depending on the interest rate and the terms of the loan. But here is an example of a typical payment on a $300,000 mortgage. Say the home cost $375,000 and you made a 20% down payment, leaving you with $300,000 in principle. For a 30-year fixed rate mortgage at 7.291%, your monthly payment would be $2,055 per month, without taxes and other fees. But if you decided to go with a 15-year mortgage at the same interest rate, your monthly payment would be $2589. 

How Much Interest Do You Pay on a $300,000 Mortgage? 

The total amount of interest you pay over the life of the loan will also vary depending on the loan term and your interest rate. If you take the above example of a 30-year fixed rate mortgage at 7.291%, you will end up paying $439,756.16 in interest for a $300,000 loan, assuming you made all the payments on time. But, say you went with the 15-year fixed rate mortgage at the same interest rate, you would only end up paying $194,194.79 in interest over the loan term. So, by paying an extra $500 per month, you would end up saving yourself close to $250,000 in interest. 

$300,000 Mortgage Amortization Schedule

If you want to see exactly how much interest you’re paying each month and how quickly you’re paying down the principal, you can use an amortization schedule. Amortization is an accounting concept that allows you to gradually reduce the amount you owe by making payments in equal installments.

Your monthly mortgage payment will be split between paying down the principal and paying interest to the bank. Over time, the amount of interest you pay each month will gradually decrease as you pay down the principal because it’s calculated as a percentage of the outstanding balance. An amortization schedule can help you chart this process. 

Here is the amortization schedule for the first year of a $300,000, 30-year fixed-rate mortgage at 7.291% interest. 

As you can see, over time, the amount you pay toward interest gradually decreases and the amount that goes toward the principal increases, even though your monthly payment remains consistent. You could extend this chart for the full 30 years until the principal is completely paid off.