Your monthly payment on a $350,000 mortgage ranges from roughly $1,660 to $2,100, depending on the interest rate and loan term you choose.

The exact number depends on three things: how much you borrow, what interest rate you lock in, and whether you choose a 15-year or 30-year loan. A $350,000 loan at 6.5% interest over 30 years costs about $2,210 per month in principal and interest alone. The same loan at 5% costs about $1,878. At 7.5%, it climbs to $2,594. These are the numbers before property taxes, homeowners insurance, and HOA fees—which can add $400 to $800 or more each month depending on where the house sits.

Interest rates shift daily. The rate you see advertised today will not be the rate you lock in when you actually close. Lenders typically let you lock a rate for 30 to 60 days while your loan processes. If rates rise during that window, your locked rate protects you. If they fall, you cannot go back and ask for the lower one—unless you pay to refinance later.

Key Takeaways

  • A $350,000 mortgage at 6% interest over 30 years costs about $2,099 per month in principal and interest, before taxes and insurance.
  • The same loan over 15 years costs roughly $2,927 per month—higher monthly payment, but you pay far less interest over the life of the loan.
  • Your actual monthly housing cost includes property taxes, homeowners insurance, and possibly PMI or HOA fees, which often add $400 to $1,000 or more.
  • Interest rates vary by lender, credit score, down payment size, and loan type, so comparing offers from at least three lenders shows real differences in what you pay.

How the 30-year loan breaks down

On a $350,000 loan at 6% over 30 years, your monthly principal and interest payment is $2,099. In your first payment, roughly $1,750 goes to interest and $349 goes to principal. By payment 180 (halfway through), that split flips—more goes to principal, less to interest. By the final payment, almost all of it is principal.

This front-loaded interest is why paying extra principal early saves you the most money. An extra $100 per month on principal in year one saves you thousands in interest over the full 30 years. An extra $100 in year 25 saves you almost nothing.

The 30-year term is the most common choice because the monthly payment fits more household budgets. You pay roughly $405,000 in total interest over the life of the loan—meaning you pay back $755,000 for a $350,000 house. That sounds steep, but it is the cost of borrowing money for three decades.

How the 15-year loan compares

A $350,000 loan at 6% over 15 years costs about $2,927 per month—roughly $828 more than the 30-year option. The tradeoff: you pay only about $177,000 in total interest instead of $405,000. You own the house free and clear 15 years sooner.

The 15-year loan makes sense if your income is stable and you can comfortably afford the higher payment. It also makes sense if you are refinancing late in a 30-year loan and want to finish paying before retirement. It does not make sense if the higher payment forces you to skip emergency savings or carry high-interest credit card debt.

Interest rates on 15-year loans are usually slightly lower than 30-year rates—often 0.25% to 0.5% lower—because the lender's risk is shorter. But the monthly payment is still substantially higher, so the rate advantage does not fully offset it.

What changes the actual number you pay

Your credit score affects the rate you are offered. A score of 760 or higher typically gets the best published rates. A score of 620 to 639 might be 0.5% to 1% higher. A score below 620 may disqualify you from conventional loans entirely, pushing you toward FHA loans, which have their own rate structure and require mortgage insurance.

Your down payment size also matters. A 20% down payment ($70,000 on a $350,000 house) usually gets you the best rate and avoids private mortgage insurance (PMI). A 10% down payment ($35,000) typically costs 0.25% to 0.5% more in interest rate, plus PMI of $150 to $300 per month. A 3% down payment ($10,500) costs even more in both rate and insurance.

The loan type changes the number too. A conventional 30-year fixed-rate loan is the standard. An adjustable-rate mortgage (ARM) starts lower—maybe 5.5% instead of 6%—but the rate rises after a set period, usually 5, 7, or 10 years. An ARM makes sense only if you plan to sell or refinance before the rate adjusts. An FHA loan requires mortgage insurance for the life of the loan, even after you build equity, which adds cost.

Property taxes, insurance, and other costs that stack on top

Your lender requires you to pay property taxes and homeowners insurance as part of your monthly mortgage payment. These go into an escrow account that the lender manages. Property taxes vary wildly by location—from under 0.5% of home value per year in some states to over 1.5% in others. On a $350,000 house, that is anywhere from $1,750 to $5,250 per year, or $145 to $438 per month.

Homeowners insurance typically costs $800 to $1,500 per year depending on the house age, location, and coverage level. That is $67 to $125 per month. If you put down less than 20%, add PMI of $150 to $400 per month. If the house is in an HOA, add $200 to $600 per month for HOA fees.

A realistic total housing payment on a $350,000 mortgage in a moderate-tax state with 20% down might look like this: $2,099 (principal and interest) + $250 (property tax) + $100 (insurance) = $2,449 per month. In a high-tax state or with less down, it could easily be $2,800 to $3,100.

How to compare offers from different lenders

Lenders are required to give you a Loan Estimate within three business days of your process. This document shows the interest rate, monthly payment, closing costs, and all fees. Compare the Loan Estimate from at least three lenders side by side, looking at the same loan amount, term, and down payment.

The interest rate is the most visible number, but closing costs matter too. One lender might offer 5.9% with $4,000 in closing costs. Another might offer 6.1% with $2,500 in closing costs. Over 30 years, the lower rate saves you more money, but if you are selling the house in five years, the lower closing costs might win. A mortgage calculator that lets you input different rates and closing costs shows the real difference.

Watch for lender fees that vary: origination fees, underwriting fees, appraisal fees, title fees. Some lenders bundle these into one "origination fee." Others list them separately. The Loan Estimate shows them all, so you can see the true cost of borrowing from each lender.

What happens if rates drop after you lock

Once you lock your rate, you are protected if rates rise. If rates fall, you cannot force the lender to give you the lower rate—you locked in at 6%, and that is what you get. You can refinance later to a lower rate, but refinancing means closing costs all over again, usually $2,000 to $5,000.

Some lenders offer a "float down" option that lets you lock in a lower rate if the market rate falls before closing. This costs a fee upfront—usually 0.25% to 0.5% of the loan amount—but it protects you if rates drop. Whether it makes sense depends on the fee, how much rates might fall, and how long you plan to stay in the house.

Frequently Asked Questions

Does the $350,000 include the down payment or not?

The $350,000 is the loan amount—what you borrow from the lender. If the house costs $437,500 and you put down 20% ($87,500), you borrow $350,000. If the house costs $350,000 and you put down 10%, you borrow $315,000. The loan amount is always the purchase price minus your down payment.

Can I pay off the mortgage early without a penalty?

Most mortgages have no prepayment penalty, meaning you can pay extra principal or pay off the entire loan early without owing a fee. Check your loan documents to confirm, but conventional loans almost never have prepayment penalties. Some FHA and VA loans do, so ask before you sign.

What if I want to lock a lower rate but rates keep falling?

Once you lock, you cannot unlock to chase a lower rate. If rates fall significantly before closing, your only option is to refinance after you close, which costs money and takes time. A float-down rider lets you capture one rate drop, but it costs a fee upfront. Most people lock and accept the rate rather than pay for a float-down.

How much house can I afford if my monthly payment is $2,100?

Lenders typically allow your housing payment to be no more than 28% of your gross monthly income. If $2,100 is your limit, you need a gross monthly income of at least $7,500 (or $90,000 per year). That assumes no other debts. If you have car loans or credit cards, lenders reduce how much they will lend you.

Do I have to pay PMI forever if I put down less than 20%?

On a conventional loan, PMI drops automatically once you reach 20% equity through a combination of payments and home value increase. On an FHA loan, PMI stays for the life of the loan if you put down less than 10%. On a VA loan, there is no PMI at all. Check your loan type to know which rule applies.