First, this does not include property taxes or homeowners insurance. Including the down payment means this house would cost you a total of $579,288.īefore you pencil either of these numbers into your budget, there are two things to keep in mind. With these terms, you'd pay a total of $179,288 in interest, and your loan would cost you $499,288. After putting $80,000 down on a $400,000 home, your monthly payment with these terms would be $2,773. As of January 9, 2024, the national average rate for a 15-year fixed-rate mortgage is 6.42%.

If you can afford a higher monthly payment, getting a 15-year fixed-rate mortgage can save you money on interest payments. Including your down payment, you'd pay $851,844 on your home. That means you'd pay a total of $771,844 on the loan. With these numbers, though, your total interest payment would be $451,844 throughout the loan. Ready to buy your dream home? Find a mortgage that works for you online now. To show how this works, let's look at how much you'd owe each month if you bought a $400,000 home with a few different types of mortgages. To figure out this information you'll need four figures: the cost of the home, the term of your mortgage, your interest rate and how much you are using for your down payment. With most mortgages, you can figure out exactly how much you'll owe each month before you even take out the loan, along with how much interest you'll pay over the life of the loan. This is especially true when you are buying something such as a car or a home – not only do you need to make sure you can afford a down payment, you need to have a plan for how you'll make the monthly payments to pay back what you borrowed. Whenever you make a big purchase, it's important to consider how it will impact your overall budget. It's easy to calculate your monthly mortgage payment once you know a few key figures. Edited By Angelica Leicht, Matt Richardson

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