Your mortgage payment is more than just principal and interest — it includes taxes, insurance, and possibly PMI. This guide breaks down real monthly payments at every price point so you know exactly what homeownership actually costs before you commit.
What Makes Up Your Mortgage Payment (PITI)
| Component | What It Covers | Typical Range |
|---|---|---|
| Principal | Paying down your loan balance | Varies by loan |
| Interest | Cost of borrowing | 6.0-7.5% (2026) |
| Taxes | Property taxes (held in escrow) | 0.5-2.5% of home value/year |
| Insurance | Homeowner’s insurance (escrow) | $1,200-$3,500/year |
| PMI | Required if <20% down | 0.5-1.5% of loan/year |
| HOA | If applicable | $0-$500+/month |
Most people underestimate their total payment by 25-40% when they only consider principal and interest.
Monthly Payment by Home Price (30-Year at 6.8%)
These assume 10% down payment, including estimated taxes and insurance:
| Home Price | Loan Amount | P&I Only | Total PITI (est.) |
|---|---|---|---|
| $200,000 | $180,000 | $1,174 | $1,624 |
| $250,000 | $225,000 | $1,468 | $1,968 |
| $300,000 | $270,000 | $1,762 | $2,312 |
| $350,000 | $315,000 | $2,055 | $2,655 |
| $400,000 | $360,000 | $2,349 | $2,999 |
| $450,000 | $405,000 | $2,642 | $3,342 |
| $500,000 | $450,000 | $2,936 | $3,686 |
| $550,000 | $495,000 | $3,230 | $4,030 |
| $600,000 | $540,000 | $3,523 | $4,373 |
| $650,000 | $585,000 | $3,817 | $4,717 |
| $700,000 | $630,000 | $4,110 | $5,060 |
| $750,000 | $675,000 | $4,404 | $5,404 |
| $800,000 | $720,000 | $4,697 | $5,747 |
| $900,000 | $810,000 | $5,284 | $6,434 |
| $1,000,000 | $900,000 | $5,871 | $7,121 |
| $1,500,000 | $1,350,000 | $8,806 | $10,556 |
Estimates include ~$200-$400/mo taxes + $125-$250/mo insurance + PMI where applicable. Actual amounts vary by location.
See detailed breakdowns: 200K Mortgage Payment, 250K Mortgage Payment, 300K Mortgage Payment, 350K Mortgage Payment, 400K Mortgage Payment, 450K Mortgage Payment, 500K Mortgage Payment, 550K Mortgage Payment, 600K Mortgage Payment, 650K Mortgage Payment, 700K Mortgage Payment, 750K Mortgage Payment, 800K Mortgage Payment, 900K Mortgage Payment, 1M Mortgage Payment, 1.5M Mortgage Payment.
How Interest Rate Affects Your Payment
On a $400,000 mortgage (30-year):
| Interest Rate | Monthly P&I | Total Interest Paid | Total Cost |
|---|---|---|---|
| 5.5% | $2,271 | $417,660 | $817,660 |
| 6.0% | $2,398 | $463,353 | $863,353 |
| 6.5% | $2,528 | $510,086 | $910,086 |
| 7.0% | $2,661 | $558,036 | $958,036 |
| 7.5% | $2,797 | $607,015 | $1,007,015 |
| 8.0% | $2,935 | $656,722 | $1,056,722 |
A 1% rate difference on $400K = $267/month or $96,000+ over 30 years. This is why shopping for rates matters enormously.
See Mortgage Rates Guide and 30-Year Mortgage Rates.
15-Year vs. 30-Year: Real Comparison
| Metric | 15-Year (5.9%) | 30-Year (6.8%) | Difference |
|---|---|---|---|
| Payment ($400K loan) | $3,367 | $2,608 | $759/mo more |
| Total interest paid | $206,110 | $539,029 | $332,919 saved |
| Equity after 5 years | $124,400 | $36,800 | $87,600 more |
| Rate (typically) | 0.5-0.75% lower | Higher | Rate advantage |
See 15-Year vs. 30-Year Mortgage and 15-Year Mortgage Rates.
Down Payment Impact
On a $400,000 home at 6.8%:
| Down Payment | Loan Amount | Monthly P&I | PMI Cost | Total Monthly |
|---|---|---|---|---|
| 3% ($12,000) | $388,000 | $2,532 | $323 | $2,855 |
| 5% ($20,000) | $380,000 | $2,479 | $317 | $2,796 |
| 10% ($40,000) | $360,000 | $2,349 | $225 | $2,574 |
| 15% ($60,000) | $340,000 | $2,218 | $142 | $2,360 |
| 20% ($80,000) | $320,000 | $2,088 | $0 | $2,088 |
| 25% ($100,000) | $300,000 | $1,957 | $0 | $1,957 |
Putting 20% down eliminates PMI and saves $225-$323/month. But for many buyers, a smaller down payment makes sense if it means buying sooner and building equity vs. renting.
See Down Payment Guide, Average Down Payment, and Median Down Payment.
The 28/36 Rule: How Much Can You Afford?
| Gross Annual Income | Max Housing (28%) | Max Total Debt (36%) | Approximate Home Price |
|---|---|---|---|
| $50,000 | $1,167/mo | $1,500/mo | $175,000-$200,000 |
| $75,000 | $1,750/mo | $2,250/mo | $275,000-$325,000 |
| $100,000 | $2,333/mo | $3,000/mo | $375,000-$425,000 |
| $125,000 | $2,917/mo | $3,750/mo | $475,000-$525,000 |
| $150,000 | $3,500/mo | $4,500/mo | $575,000-$650,000 |
| $200,000 | $4,667/mo | $6,000/mo | $750,000-$850,000 |
See How Much House Can I Afford (50K), 75K, 100K, 150K, 200K.
Understanding Amortization
In the early years, most of your payment goes to interest. The split shifts gradually:
| Year | Monthly Payment | To Interest | To Principal | Remaining Balance |
|---|---|---|---|---|
| 1 | $2,608 | $2,037 | $571 | $393,300 |
| 5 | $2,608 | $1,870 | $738 | $369,100 |
| 10 | $2,608 | $1,641 | $967 | $332,700 |
| 15 | $2,608 | $1,340 | $1,268 | $282,800 |
| 20 | $2,608 | $946 | $1,662 | $215,900 |
| 25 | $2,608 | $427 | $2,181 | $126,500 |
| 30 | $2,608 | $17 | $2,591 | $0 |
Based on $400K loan at 6.8%, 30-year fixed
Making extra payments early has the biggest impact because you’re eliminating high-interest portions. See Bi-Weekly Mortgage Calculator and Amortization Calculator.
Property Taxes by State
Property taxes can make or break your total payment:
| State | Effective Tax Rate | Tax on $400K Home | Monthly |
|---|---|---|---|
| New Jersey | 2.23% | $8,920 | $743 |
| Illinois | 2.08% | $8,320 | $693 |
| Texas | 1.60% | $6,400 | $533 |
| New York | 1.40% | $5,600 | $467 |
| Florida | 0.80% | $3,200 | $267 |
| California | 0.71% | $2,840 | $237 |
| Colorado | 0.49% | $1,960 | $163 |
| Hawaii | 0.32% | $1,280 | $107 |
See Property Tax by State and Property Tax Calculator.
How to Lower Your Mortgage Payment
| Strategy | Potential Savings | When It Works |
|---|---|---|
| Refinance to lower rate | $100-$500+/mo | Rates drop 0.75%+ |
| Remove PMI | $100-$300/mo | 20% equity reached |
| Appeal property tax | $50-$200/mo | Assessment too high |
| Shop insurance annually | $50-$150/mo | Haven’t compared in 2+ years |
| Recast your mortgage | Varies | Made large extra payment |
See Should I Refinance?, Refinancing Guide, PMI Guide, and Cost to Refinance.
Average Mortgage Payment in America
| Metric | Amount (2026) |
|---|---|
| Average mortgage payment | ~$2,300/mo |
| Median mortgage payment | ~$1,900/mo |
| Average new mortgage amount | ~$405,000 |
| Average mortgage rate | ~6.8% (30-year) |
See Average Mortgage Payment and Average Home Price by State.
Quick Reference Table
| Home Price | 10% Down | 20% Down | Income Needed |
|---|---|---|---|
| $250K | $1,968/mo | $1,608/mo | $60-75K |
| $300K | $2,312/mo | $1,888/mo | $75-90K |
| $400K | $2,999/mo | $2,448/mo | $100-120K |
| $500K | $3,686/mo | $3,008/mo | $125-150K |
| $700K | $5,060/mo | $4,128/mo | $175-200K |
All estimates at 6.8% rate, 30-year fixed, including taxes and insurance.
The Bottom Line
Your real mortgage payment is 25-40% higher than the principal and interest alone. Before you commit, calculate the full PITI — including taxes, insurance, and PMI — against the 28/36 rule using your gross income. If you can keep housing under 28% of gross income while still saving 15-20% for retirement, you’re in a healthy range. If you’re stretching to 35-40%+ of income, you’re house-poor regardless of what the lender approves.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy