The monthly payment on a $350,000 house typically ranges from $1,900 to $2,500, depending on your down payment, interest rate, and loan term

The exact number depends on three things you control: how much you put down, what interest rate you lock in, and whether you choose a 15-year or 30-year loan. A $350,000 purchase with 20 percent down ($70,000), a 7 percent interest rate, and a 30-year term costs roughly $1,900 per month in principal and interest alone. The same house with 10 percent down ($35,000) at the same rate and term runs about $2,200. If rates are 6 percent instead of 7 percent, that $1,900 payment drops to around $1,680.

But principal and interest is only part of what you pay each month. Property taxes, homeowners insurance, and mortgage insurance (if your down payment is less than 20 percent) get added on top. In many states, these extras add $400 to $800 per month to your payment. Your actual monthly cost depends heavily on where the house is located and what your lender requires.

Key Takeaways

  • A $350,000 house with 20 percent down at a 7 percent interest rate on a 30-year loan costs about $1,900 per month in principal and interest.
  • Lowering your down payment to 10 percent raises your monthly payment by roughly $300 and adds mortgage insurance costs on top.
  • Property taxes, homeowners insurance, and mortgage insurance can add $400 to $800 monthly to your principal and interest payment.
  • A 15-year loan costs significantly more per month than a 30-year loan on the same house, but you pay far less interest overall.
  • Your actual rate depends on your credit score, down payment size, and current market conditions — rates vary daily and by lender.

How down payment size changes your monthly cost

The more you put down, the less you borrow, and the lower your monthly payment. On a $350,000 house, the difference between a 10 percent down payment and a 20 percent down payment is $35,000 — and that translates directly into your monthly bill.

With 10 percent down ($35,000), you borrow $315,000. At 7 percent over 30 years, that payment is roughly $2,200 per month in principal and interest. With 20 percent down ($70,000), you borrow $280,000, and the same rate and term costs about $1,900 per month. The $300 difference compounds over 360 payments.

Putting down less than 20 percent also triggers private mortgage insurance (PMI), a monthly fee that protects the lender if you default. PMI on a $315,000 loan typically runs $150 to $250 per month, depending on your credit score and the lender's requirements. That cost disappears once you reach 20 percent equity in the home, but it can take years.

Interest rates and how they reshape your payment

A single percentage point in interest rate can shift your monthly payment by $200 or more. On a $280,000 loan (20 percent down on $350,000) over 30 years, the difference between 6 percent and 7 percent is roughly $190 per month. Between 6 percent and 8 percent, it is nearly $380 per month.

Interest rates change daily and depend on your credit score, the size of your down payment, the type of loan (conventional, FHA, VA), and market conditions. A borrower with a 740 credit score may get a rate 0.5 percent lower than someone with a 680 score on the same day. Lenders also charge different rates, so comparing offers from three to five lenders before you commit can save you thousands over the life of the loan.

You can lock in a rate for 30, 60, or 90 days while you shop for a house. Once you find a property and make an offer, your lender will lock your rate until closing — usually 30 to 45 days later. If rates drop during that time, you may be able to renegotiate, but if they rise, you are bound to your locked rate.

15-year versus 30-year loans: the monthly trade-off

A 15-year loan costs significantly more per month but saves you a large amount in total interest. On a $280,000 loan at 7 percent, a 30-year term costs $1,900 per month; a 15-year term costs about $2,950 per month — roughly $1,050 more each month. Over the life of the loan, you pay about $400,000 in interest on the 30-year loan and about $150,000 on the 15-year loan.

The 15-year option makes sense if you have stable income, a solid emergency fund, and want to own your home free and clear sooner. The 30-year option gives you lower monthly payments and more flexibility if your income changes or an unexpected expense arises. Many borrowers choose the 30-year loan and pay extra toward principal when they can, giving them the flexibility of the longer term with some of the interest savings of the shorter one.

Property taxes, insurance, and other costs stacked on top

Your lender will require you to pay property taxes and homeowners insurance as part of your monthly mortgage payment. These amounts vary dramatically by location. In some states, property taxes on a $350,000 house run $200 to $300 per month; in others, they run $600 or more. Homeowners insurance typically costs $100 to $200 per month, depending on the house's age, location, and the coverage you choose.

If you live in a flood zone or an area prone to hurricanes, flood insurance may be required, adding another $50 to $300 per month. If the house is in a planned community or has a homeowners association, you will also pay HOA fees, which can range from $50 to several hundred dollars monthly.

Your lender collects all these costs along with your principal and interest payment and holds them in an escrow account, paying the taxes and insurance on your behalf when they are due. This means your actual monthly payment — the number you see on your bill — is usually 30 to 40 percent higher than the principal and interest alone.

What a real payment looks like: a worked example

Let's say you are buying a $350,000 house in a state with moderate property taxes. You put down $70,000 (20 percent), lock in a 7 percent interest rate, and choose a 30-year loan. Your principal and interest payment is $1,900 per month. Property taxes on the home run $300 per month, homeowners insurance is $150 per month, and HOA fees are $75 per month. Your total monthly payment is $2,425.

Now change one variable: you put down only $35,000 (10 percent). Your principal and interest payment rises to $2,200, and you add $200 per month in PMI. Property taxes, insurance, and HOA fees stay the same. Your new total is $2,925 per month — $500 more than the 20 percent down scenario, even though you only borrowed an extra $35,000.

These examples assume you have no other debts and your income is stable. Lenders typically want your total monthly debt — including the mortgage, car loans, credit cards, and student loans — to be no more than 43 percent of your gross monthly income. On a $2,425 payment, that means you need a gross monthly income of at least $5,640 (or about $67,700 per year).

How to estimate your own payment before you shop

Use an online mortgage calculator to plug in your down payment amount, the interest rate you expect to get (ask a lender what rates are currently available for your credit range), and your loan term. The calculator will show you principal and interest. Then add your estimated property taxes and insurance — your real estate agent or a local tax assessor can give you rough numbers for the area you are looking at.

Remember that the rate you see online is not the rate you will get. Rates vary by lender, credit score, down payment size, and loan type. Getting pre-approved by a lender (not just pre-may have access to) involves a credit check and a review of your finances, and it locks in a rate for a set period. Pre-approval is free and shows sellers you are serious, so it is worth doing before you start house hunting.

Frequently Asked Questions

What credit score do I need to get a mortgage on a $350,000 house?

Most conventional lenders require a credit score of at least 620, but scores of 740 or higher typically get the best rates. FHA loans allow scores as low as 580 with a 10 percent down payment. Your score affects both whether you are approved and what interest rate you receive.

Can I put down less than 10 percent?

Yes, but it costs more. FHA loans allow down payments as low as 3.5 percent, but you will pay mortgage insurance for the life of the loan (not just until you reach 20 percent equity). Conventional loans with less than 10 percent down also require PMI. The smaller your down payment, the higher your monthly cost.

What happens if interest rates drop after I lock in my rate?

You are bound to your locked rate unless you refinance, which involves closing costs and a new application. Some lenders offer a "rate lock float down" option that lets you lock in a lower rate if the market drops during your lock period, but this usually costs extra upfront.

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

No. PMI drops off automatically once you reach 20 percent equity in the home through regular payments (or faster if you make extra principal payments). You can also request removal once you hit 20 percent equity, though the lender may require an appraisal to confirm the home's value.

Is the interest rate the same at every lender?

No. Rates vary by lender, sometimes by 0.5 percent or more on the same day. Shopping with three to five lenders takes a few hours and can save you thousands over the life of the loan. Each lender will provide a Loan Estimate within three business days of your application, showing the rate, fees, and total costs.