## What is the Payment on a $700,000 Mortgage?

The monthly payment on a $700,000 mortgage will vary depending on factors such as your credit score, financial information, and total debt. When you apply, the lender will analyze all these factors and offer you a certain interest rate, which will be applied to the outstanding principal that makes up your total payment.

Say the home is worth $875,000, and you make the full 20% down payment, leaving you with an outstanding balance of $700,000. If you were to get a 30-year fixed-rate mortgage at 7% interest, then your monthly payment would be $4,657. But if you went for a 15-year fixed-rate loan, you’d pay $6,292 monthly.

## Where to Get a $700,000 Mortgage

A $700,000 mortgage is still within the conforming limits set by Fannie Mae and Freddie Mac, which means it would not be considered a jumbo loan (the limit is $726,000 for a single-family home). That means you shouldn’t have a problem getting a $700,000 mortgage from any standard mortgage provider, such as a bank, credit union, or online lender, as long as you meet the credit and income requirements.

Each option offers unique advantages and disadvantages. Banks tend to be the go-to for many home shoppers, although they also feature strict underwriting standards. Credit unions are a bit laxer but also require membership and other commitments. Online lenders are also slightly less strict with requirements but tend to feature higher fees. So, you’ll have to shop around to find the best option.

## How to Qualify for a $700,000 Mortgage

You must meet the credit and income requirements set by the lender to be approved for a $700,000 mortgage. The exact requirements will vary depending on the issuer, but generally, you’ll need to prove your creditworthiness and ability to make the monthly payments. The minimum credit score for a conventional loan is 620, although some lenders have stricter standards. FHA and VA loans accept scores as low as 580, and USDA loans generally require 640, although that also depends on the lender.

Individual lenders also set income requirements, but generally, most financial professionals agree you should not spend more than 28% of your monthly income on your mortgage payment. So, in the above example, you would need to make around $200,000 per year to comfortably afford a $700,000 mortgage (or $275,000 for a 15-year fixed-rate loan).

## How Much Interest is Paid on a $700,000 Mortgage

The total interest paid on a $700,000 mortgage will also depend on the loan terms and your interest rate. But in the above example of a 30-year fixed rate loan at 7% interest, you’d end up paying $976,562.29 in total interest. If you decided to go with a 15-year fixed-rate loan, you’d only pay $432,523.62 in total interest. So, by paying it down in half the time, you’d save yourself over $500,000 in interest. However, you’d also need to pay an extra $1635 monthly. So, you’ll have to decide whether the additional monthly cost is worth the interest savings.

## $700k Mortgage Amortization Schedule

You can use an amortization schedule to determine how much interest vs. principal you’re making with each payment. Amortization is an accounting principle where you pay down a loan balance by making equal installments that are split between interest and principal. A mortgage is an amortized loan and slowly decreases the principal every time you make a payment. Interest is calculated as a percentage of the outstanding balance, so the more you whittle away the principal, the less interest you’ll owe each month. You can chart this process using an amortization schedule.

Here is a look at the first year of a $700,000 30-year fixed-rate mortgage at 7% interest.

Month |
Principal |
Interest |
Remaining Balance |

1 |
$573.78 |
$4,083.33 |
$699,426.22 |

2 |
$577.13 |
$4,079.99 |
$698,849.08 |

3 |
$580.50 |
$4,076.62 |
$698,268.59 |

4 |
$583.88 |
$4,073.23 |
$697,684.70 |

5 |
$587.29 |
$4,069.83 |
$697,097.41 |

6 |
$590.72 |
$4,066.40 |
$696,506.70 |

7 |
$594.16 |
$4,062.96 |
$695,912.54 |

8 |
$597.63 |
$4,059.49 |
$695,314.91 |

9 |
$601.11 |
$4,056.00 |
$694,713.79 |

10 |
$604.62 |
$4,052.50 |
$694,109.17 |

11 |
$608.15 |
$4,048.97 |
$693,501.03 |

12 |
$611.69 |
$4,045.42 |
$692,889.33 |

As you can see, at the beginning of the loan, most of the payment goes toward interest. But, over time, more and more of the payment goes toward the principal until the loan is entirely paid off.