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# Monthly Payment For \$100,000 Mortgage

By PropertyClub Team
Mar 14th 2023
While buying a new home can be an exciting moment, it’s also crucial to understand your financial obligations. So, to help you get a better sense of how the process works, here is a look at how much it costs to get a \$100,000 mortgage.

## hash-markHow Much is the Monthly Mortgage Payment on a 100K Mortgage?

Your exact monthly mortgage payment will vary depending on the type of loan you get. But you can use a mortgage calculator to estimate the payment based on the interest rate offered to you by the bank. Say the home is worth \$125,000, and you were able to make the 20% down payment, leaving you with a balance of \$100,000. If you were to get a 30-year fixed-rate loan at 7.5% interest, your monthly mortgage payment would be \$699. But, say you wanted to pay it off sooner and decided to go with a 15-year fixed-rate loan. In that case, your monthly payment would be \$927, but you’d pay it down in half the time.

## hash-markHow Much Interest Do You Pay on a \$100,000 Mortgage?

The total interest paid on a \$100,000 mortgage will once again depend on your interest rate and the terms of the loan. But you can use the above example to get an idea of how much you’ll pay. With a 30-year fixed-rate loan at 7.5% interest, you would end up paying \$151,717.22 in total interest over the life of the loan, assuming you made all your payments on time. But, say you decided to go with the 15-year fixed-rate mortgage. In that case, the total interest paid would only be \$66,862.22. So, by paying an extra \$328 per month, you would pay down the loan in half the time and save yourself almost \$85,000 in interest over the life of the loan.

## hash-markHow to Find a 100k Mortgage

Smaller mortgage loans actually tend to be harder to find than larger loans that are within the conforming loan limit because they are less common and pay less interest. Fewer and fewer homes in the US sell for \$100,000 or less, and therefore many lenders have minimum principal requirements that are above that threshold. However, that does not mean you can’t find a \$100,000 mortgage, but you may need to shop around beyond a traditional bank. Credit unions are great for finding a smaller mortgage, although you must be willing to become a member. You can also use an online mortgage platform to help you find the best rates on lenders offering small loans.

## hash-markHow to Qualify for a \$100,000 Mortgage Loan

Next, you’ll need to make sure you meet the qualifications. The exact income and credit requirements will vary based on your financial profile and the type of loan you get. Here are the minimum credit and down payment requirements for the most common loan types.

 Loan Type Minimum Credit Score Down Payment Conventional Loan 620+ (depends on the lender) 20% (or PMI required) FHA 580-620 3.5% VA 580 0% USDA 640 0%

The income requirements will also depend on the lender. However, a good rule of thumb is to not spend more than 28% of your monthly income on your mortgage. So, if your mortgage payment is \$700 per month, you should make at least \$30,000 per year.

## hash-mark\$100,000 Mortgage Amortization Schedule

You can use what is known as an amortization schedule to see exactly how much interest and principal is paid with each installment. Amortization is an accounting concept that allows you to pay down a loan with monthly payments by making contributions to both the principal and interest simultaneously. At the beginning of the loan, you’ll pay mostly interest. But, as you whittle down the principal, the interest required on each payment will also gradually decrease until the loan is completely paid off. You can use an amortization schedule to chart this process.

Here is the amortization schedule for the first year of a \$100,000, 30-year fixed-rate mortgage at 7.5% interest.

 Month Interest Principal Outstanding Balance 1 \$625.00 \$302.01 \$99,697.99 2 \$623.11 \$303.90 \$99,394.09 3 \$621.21 \$305.80 \$99,088.29 4 \$619.30 \$307.71 \$98,780.58 5 \$617.38 \$309.63 \$98,470.94 6 \$615.44 \$311.57 \$98,159.38 7 \$613.50 \$313.51 \$97,845.86 8 \$611.54 \$315.47 \$97,530.38 9 \$609.56 \$317.45 \$97,212.94 10 \$607.58 \$319.43 \$96,893.50 11 \$605.58 \$321.43 \$96,572.08 12 \$603.58 \$323.43 \$96,248.64

In the beginning, most of the payment goes toward paying off the interest. But, over time, as the outstanding balance decreases, the interest required on each payment also decreases, allowing more money to go toward the principal. This amortization schedule is just for one year, but you could also extend it for the entire life of the loan.