How Much is a Monthly Payment on a $150,000 Mortgage?

When you take out a mortgage, you’ll pay your balance off month by month for the life of the loan — often 15 or 30 years for many homebuyers. But mortgage loans also come with additional costs, with interest being the biggest one. For a $150,000 home loan with a 30-year term, your monthly payment could be between $899.33 and $1,048.82; your interest rate will heavily impact your payment amount. 

If you’re applying for a $150,000 mortgage, we'll let you know how much that loan should cost you each month with interest.

Monthly payments for a $150,000 mortgage

Your mortgage payment will include a few line items, including principal, interest, and sometimes, escrow costs.

Here’s what those entail:

• Principal: This money is applied straight to your loan balance.
• Interest: This is the cost of borrowing the money. How much you’ll pay is indicated by your interest rate.
• Escrow costs: Sometimes, your lender might require you to use an escrow account to cover property taxes, homeowners insurance, and mortgage insurance. When this is the case, you’ll pay money into your escrow account monthly, too.

See what your estimated monthly payment would be with our mortgage payment calculator.

For a $150,000 home with a 30-year mortgage at a 6% rate, your basic monthly payment — meaning just principal and interest — would be $899.33. If all those factors are the same but your loan term is 15 years, you can expect to pay $1,265.79 per month. If you have an escrow account, the costs would be higher and depend on factors like your insurance premiums and your local property tax rates.

Here’s an in-depth look at what your typical monthly principal and interest payments would look like for that same $150,000 mortgage with different interest rates:

Where to get a $150,000 mortgage

Traditionally, getting a mortgage loan would mean researching lenders, applying with three to five, and then completing the loan applications for each one. You’d then receive loan estimates from the lenders that break down your expected interest rate, loan costs, origination fees, any mortgage points, and closing costs. From there, you would choose your best offer and move forward with the loan process.

What to consider before applying for a $150,000 mortgage

Before you apply for any mortgage loan, you’ll want to assess its total costs — including the upfront ones, like your down payment and closing costs, as well as the longer-term ones (particularly interest).

Total interest paid on a $150,000 mortgage

Longer-term loans will always come with more interest costs than loans with shorter lifespans. For example, a 15-year, $150,000 mortgage with a 6% fixed rate would mean spending $77,841 over the course of the loan. A 30-year mortgage with the same terms, however, would cost $173,757 in interest — nearly $96,000 more once all is said and done.

Amortization schedule on a $150,000 mortgage

A mortgage amortization schedule helps ensure your mortgage will be paid in full when you make your last scheduled payment. When you begin paying off your loan, most of your payment will go toward interest. But as years pass, more of your payment will be applied to the principal.

Here’s what that looks like for a 30-year, $150,000 mortgage with a 6% fixed rate:

Here’s the amortization schedule on a 15-year, $150,000 mortgage with a 6% fixed rate:

How to get a $150,000 mortgage

Applying for a mortgage isn’t as hard as most people think. It just takes a little preparation.

Here are the steps you should take to get a mortgage and buy that dream house:

1. Estimate your home budget: Evaluate your finances — including your debts, income, and household expenses. You’ll need to determine what you can comfortably afford for both your monthly and down payment.
2. Check your credit: Your credit will play a role in what loans you qualify for and the interest rate you receive, so pull your credit and assess where you stand. 
3. Get pre-approved: You should always get pre-approved, as it can point you in the right direction price-wise.
4. Compare mortgage rates: Next, compare your loan options. Look at interest rates, closing costs, and fees. You should also factor in the mortgage APR, too. The annual percentage rate indicates how much you’ll pay every year for the loan, including fees and other charges.
5. Negotiate your home purchase: Include your pre-approval letters in any offer you make, and work with your agent to negotiate a deal. Showing sellers that you’re already pre-approved can often improve your chances — especially in a bidding war.
6. Complete your mortgage application: Once you’ve chosen a lender and the seller has accepted your offer to buy the house, it’s time to fill out the full loan application. This will require some financial information, a credit check, and documents like bank statements, tax returns, and W-2s.
7. Get approved: After your application is in, it will go into underwriting, where your lender will verify all your information and crunch the numbers. They will also order an appraisal to make sure the home you’re buying is worth the borrowing amount.
8. Prep for closing: Your lender will assign you a closing date. Be sure to secure a homeowners insurance policy on the home before this date arrives. You’ll need proof of coverage before closing the loan. You should also review your closing disclosures to understand the final costs and terms of your loan. If you have any questions, ask your loan officer ASAP.
9. Close on your mortgage: Once the closing day arrives, you’ll sign your paperwork, pay your down payment and closing costs, and get your keys.

Be sure to lean on your real estate agent and loan officer if you need help. They can guide you during the homebuying and mortgage processes and make sure you’re on track for success.

Monthly payments for different mortgage amounts

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