A $300,000 mortgage costs about $2,047 a month in principal and interest on a 30-year fixed loan at 7.25%. On a 15-year loan at 6.60%, it costs about $2,630. Those figures cover only the loan itself. Add property taxes and homeowners insurance, and our worked example comes to about $2,540 a month. If you put down less than 20%, private mortgage insurance (PMI) can add another $90 to $210.
Four things set your exact number: the interest rate, the loan term, how much you borrow, and the taxes and insurance for your specific home. The tables below show how each one moves the payment. Every example uses hypothetical rates and costs, not lender quotes.
Is it a $300,000 loan or a $300,000 house?
People search for both, and the answers differ.
- A $300,000 mortgage means you borrow $300,000. With 20% down, that loan fits a home priced around $375,000.
- A $300,000 house means the purchase price is $300,000. With 20% down, you borrow $240,000, and the monthly payment is noticeably lower.
Most of this guide covers the $300,000 loan. The down-payment section further down covers the $300,000 house.
$300,000 mortgage payment by interest rate
This table shows principal and interest (P&I) only, for a $300,000 fixed-rate loan. Taxes, insurance and PMI are covered in the next sections.
| Interest rate | 30-year monthly P&I | 30-year total interest | 15-year monthly P&I | 15-year total interest |
|---|---|---|---|---|
| 6.00% | $1,798.65 | $347,514.57 | $2,531.57 | $155,682.69 |
| 6.50% | $1,896.20 | $382,633.47 | $2,613.32 | $170,397.98 |
| 7.00% | $1,995.91 | $418,526.69 | $2,696.48 | $185,367.27 |
| 7.25% | $2,046.53 | $436,750.38 | $2,738.59 | $192,945.96 |
| 7.50% | $2,097.64 | $455,151.67 | $2,781.04 | $200,586.67 |
| 8.00% | $2,201.29 | $492,465.74 | $2,866.96 | $216,052.13 |
Two patterns stand out:
- Each quarter point costs about $50 a month on a 30-year loan this size. That adds up to roughly $18,000 over the full term.
- At every rate shown, 30-year interest exceeds the amount you borrowed. At 7.25%, you would pay $436,750 in interest on a $300,000 loan.
For context, Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.24% and the 15-year at 6.60% for the week ending October 29, 2026. That survey assumes strong credit and a 20% down payment, so your own quote may come in higher or lower. Rates also change every week.
The formula behind the payment
Lenders calculate a fixed-rate payment with the standard amortization formula:
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
Here, M is the monthly payment, P is the loan amount, r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments.
For a $300,000 loan at 7.25% over 30 years:
- P = $300,000
- r = 0.0725 ÷ 12 = 0.0060417
- n = 30 × 12 = 360
- (1 + r)^360 = 8.74477
- M = $300,000 × (0.0060417 × 8.74477) ÷ (8.74477 − 1) = $2,046.53
The same formula drives every row in the table above. Change the rate or the term, and the result moves with it.
15-year vs. 30-year on a $300,000 loan
Shorter loans usually carry lower rates. This comparison uses 7.25% for 30 years and 6.60% for 15 years, which are close to Freddie Mac’s latest averages but still hypothetical.
| Loan term | Monthly P&I | Total interest | Total paid |
|---|---|---|---|
| 30-year at 7.25% | $2,046.53 | $436,750.38 | $736,750.38 |
| 15-year at 6.60% | $2,629.84 | $173,371.64 | $473,371.64 |
The 15-year loan costs $583.31 more each month but saves $263,378.75 in interest. That trade works only if the higher payment still leaves room for an emergency fund, retirement saving and the other costs of owning a home.
What your full monthly payment looks like (PITI)
Most lenders collect property taxes and homeowners insurance through an escrow account. So the check you actually send covers four parts: principal, interest, taxes and insurance, often shortened to PITI.
Example: a $375,000 home with 20% down ($75,000), financed with a $300,000 loan at 7.25% for 30 years. The assumptions are property tax at 1.1% of the home’s value per year, homeowners insurance of $1,800 per year, and no HOA fees.
| Payment component | Monthly cost | How it’s calculated |
|---|---|---|
| Principal and interest | $2,046.53 | Amortization formula |
| Property tax | $343.75 | $375,000 × 1.1% ÷ 12 |
| Homeowners insurance | $150.00 | $1,800 ÷ 12 |
| PMI | $0.00 | Not required with 20% down on a conventional loan |
| Total monthly payment | $2,540.28 |
Property tax is the least predictable line. Effective rates differ widely by state and county, so use your county’s actual rate or the tax figure on the listing. Insurance premiums also vary with location, the home’s age and coverage, and they tend to run higher where storms, wildfires or hail are common.
How your down payment changes the payment on a $300,000 house
Now consider a $300,000 purchase price. Every row assumes 7.25% for 30 years, property tax of $275 a month (1.1% a year) and insurance of $150 a month. PMI is set at 0.5% of the loan amount per year. That is a hypothetical rate, since real PMI quotes depend on your credit score and down payment.
| Down payment | Loan amount | P&I | PMI | Taxes + insurance | Total monthly |
|---|---|---|---|---|---|
| 5% ($15,000) | $285,000 | $1,944.20 | $118.75 | $425.00 | $2,487.95 |
| 10% ($30,000) | $270,000 | $1,841.88 | $112.50 | $425.00 | $2,379.38 |
| 20% ($60,000) | $240,000 | $1,637.22 | $0.00 | $425.00 | $2,062.22 |
Moving from 5% down to 20% down cuts this payment by $425.73 a month. In real life, the gap is often wider, because PMI rates usually climb as the down payment shrinks. This example holds the PMI rate steady to keep the comparison simple.
How PMI works and when it ends
PMI protects the lender, not you, when you put less than 20% down on a conventional loan. Freddie Mac estimates that it typically costs about $30 to $70 a month for every $100,000 borrowed. On a $300,000 loan, that comes to roughly $90 to $210 a month.
PMI is not permanent. The Consumer Financial Protection Bureau (CFPB) summarizes the federal rules for most single-family primary homes:
- You can ask to cancel in writing once your balance reaches 80% of the home’s original value. You must be current on payments, have no second lien, and show that the home has not lost value.
- Your servicer generally must end PMI automatically when your balance is scheduled to reach 78% of the original value, as long as you are current.
- FHA and VA loans follow different rules, so check with your servicer.
In the 10%-down example above ($270,000 loan on a $300,000 home at 7.25%), the scheduled balance:
- reaches 80% of value ($240,000) at payment 104, about 8 years and 8 months in;
- reaches 78% of value ($234,000) at payment 118, about 9 years and 10 months in.
At $112.50 a month, that works out to about $11,700 in PMI if you request removal at 80%, or $13,275 if you wait for automatic cancellation. With 5% down, automatic cancellation comes later, around payment 145 (about 12 years). Extra principal payments reach these thresholds sooner.
Why so little goes to principal at first
On a 30-year, $300,000 loan at 7.25%, the first payment of $2,046.53 splits into $1,812.50 of interest and only $234.03 of principal.
| Period | Interest paid | Principal paid | Balance afterward |
|---|---|---|---|
| First year | $21,654.78 | $2,903.57 | $297,096.43 |
| First 5 years | $105,928.06 | $16,863.67 | $283,136.33 |
The principal portion doesn’t exceed the interest portion until payment 246, more than 20 years in. This matters if you might sell or refinance within a few years, because your payments will have built less equity than their size suggests. By comparison, the 15-year loan at 6.60% pays off $12,120.39 of principal in its first year, more than four times as much.
How much income do you need for a $300,000 mortgage?
Many lenders start with the 28/36 guideline. Housing costs should stay at or below 28% of gross monthly income, and total debt payments at or below 36%. It’s a rule of thumb, not a legal limit, and many loan programs allow higher ratios.
Using the $2,540.28 PITI example:
- 28% front-end: $2,540.28 ÷ 0.28 = $9,072.42 a month, or about $108,900 a year.
- 36% back-end, with $400 of other monthly debt: ($2,540.28 + $400) ÷ 0.36 = $8,167.44 a month, or about $98,000 a year.
The stricter of the two limits applies. So this borrower would need roughly $108,900 in gross household income to stay inside 28/36. The Home Affordability Calculator runs these limits for your own income, debts and down payment, and it lets you compare 28%, 36%, 43% and 50% caps.
Estimate your own payment
To replace these assumptions with your real numbers, use the free Art of Article Mortgage Calculator:
- Enter the home price and your down payment.
- Enter the rate from a lender quote or Loan Estimate, then choose a term from 10 to 30 years.
- Add your county’s property tax rate, your insurance premium and any HOA dues.
- Review the total monthly payment, the term comparison and the amortization schedule.
- Drag the extra-payment slider to see how added principal shortens the loan.
If you’re putting down less than 20%, add your PMI quote to the total. If you have car, student or card payments too, the DTI Calculator shows how a new mortgage fits against them.
Other costs that change the real number
- HOA dues: common for condos and planned communities, and paid on top of PITI.
- Escrow changes: tax reassessments and insurance renewals can raise or lower your payment from year to year, even on a fixed-rate loan.
- Discount points: paying points at closing can lower your rate in exchange for cash up front.
- Adjustable rates: an ARM’s payment can change after its initial fixed period.
- Closing costs: paid once, not monthly, but they affect how much cash you need. Your Loan Estimate lists them.
- Upkeep and utilities: never part of the mortgage payment, but a real monthly cost of owning a home.
Frequently asked questions
Is $2,000 a month realistic for a $300,000 mortgage?
It is realistic for principal and interest at about 7.00% or below on a 30-year term ($1,995.91 at 7.00%). Once property taxes and insurance are added, most borrowers pay more than $2,000.
Does a fixed-rate mortgage payment ever change?
Principal and interest stay the same for the life of a fixed-rate loan. The escrow portion can change as property taxes and insurance premiums change, so your total payment can still move.
Can extra payments remove PMI sooner?
Yes. According to the CFPB, you can request cancellation once extra payments bring your balance down to 80% of the home’s original value. You must also meet the other conditions, such as having no second lien and a good payment history.
Do FHA loans have PMI?
FHA loans use their own mortgage insurance, and its cancellation rules differ from conventional PMI. Ask your servicer how and when it ends on your loan.
The bottom line
At 7.25%, a $300,000, 30-year loan costs about $2,047 a month in principal and interest. With taxes and insurance, our example comes to about $2,540. The rate, the term and the down payment can each move that figure by hundreds of dollars. Start by running your own numbers in the Mortgage Calculator, then check what your income supports with the Home Affordability Calculator.
This article is for education only. All examples use hypothetical rates, taxes, insurance and PMI. It is not a loan offer or personalized financial advice. Compare Loan Estimates from more than one lender before you commit.
Sources
Last reviewed: November 2, 2026.
- Freddie Mac, Primary Mortgage Market Survey: weekly 30-year and 15-year averages as of October 29, 2026, and the survey’s borrower assumptions.
- CFPB, When can I remove private mortgage insurance (PMI) from my loan?: the 80% request rule, 78% automatic termination, and the FHA/VA exceptions.
- Freddie Mac MyHome, Breaking down PMI: the typical cost range of $30–$70 a month per $100,000 borrowed.