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How Much a $250,000 Mortgage Will Cost You

There’s more to a mortgage than just the monthly payment. Before you take out a $250,000 mortgage, you’ll need to account for things like interest, insurance, taxes, closing costs, and more.

Aly J. Yale Aly J. Yale Edited by Chris Jennings Updated January 5, 2022

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

The monthly payment isn’t the only cost you’ll want to think about when taking out a mortgage. To gauge the real cost of your loan, you’ll need to think about interest, too — or how much it costs to borrow the money over time.

Learn more about how much a $250,000 mortgage will cost you throughout the life of the loan:

  • Monthly payments for a $250,000 mortgage
  • Where to get a $250,000 mortgage
  • What to consider before applying for a $250,000 mortgage
  • How to get a $250,000 mortgage

Monthly payments for a $250,000 mortgage

Your monthly payment will depend on your interest rate and loan term — or how long your loan lasts for.

Credible is here to help with your pre-approval. Answer a few quick questions below to get started.

On a $250,000 fixed-rate mortgage with an annual percentage rate (APR) of 4%, you’d pay $1,193.54 per month for a 30-year term or $1,849.22 for a 15-year one.

It’s important to note that these estimates only include principal and interest. Other costs that are typically lumped into your monthly payment, including taxes and insurance, vary widely and are not included here.

Annual Percentage Rate (APR)
Monthly payment
(15 year)
Monthly payment
(30 year)
3.00%
$1,726.45$1,054.01
3.25%
$1,756.67$1,088.02
3.50%
$1,787.21$1,122.61
3.75%
$1,818.06$1,157.79
4.00%
$1,849.22$1,193.54
4.25%
$1,880.70$1,229.85
4.50%
$1,912.48$1,266.71
4.75%
$1,944.58$1,304.12
5.00%
$1,976.98$1,342.05

Check out: 20- vs 30-Year Mortgage: Is an Unusual Option Right for You?

Where to get a $250,000 mortgage

If you qualify, you can get a $250,000 mortgage from any mortgage lender, bank, or credit union. Rates and terms vary by company, though, so you’ll need to shop around to get the best deal.

Traditionally, this would mean reaching out to each lender individually to get a quote, which can be time-consuming and tedious.

With Credible, shopping around for your loan is much more streamlined. It only takes a few minutes to get pre-approved, and you can get quotes from several mortgage lenders at once.

Once you’ve compared your quotes, you can decide which lender to proceed with. You’ll then need to complete their full application and provide the required financial documentation.

Loading widget - purchase-rate-table

What to consider before applying for a $250,000 mortgage

Before taking out a $250,000 mortgage, you’ll want to be well aware of the costs it will come with. These costs include interest, your down payment, and sometimes insurance and other fees.

There are also closing costs which typically clock in somewhere between 2% and 5% of the total loan amount.

Learn More: How to Know If You Should Buy a House

Total interest paid on a $250,000 mortgage

The total amount of interest you’ll pay on a $250,000 mortgage will vary based on your interest rate and loan term. High interest rates and long terms will result in the most interest over time, while shorter terms and low interest rates will save you on interest.

Example: On a 15-year, $250,000 mortgage with 4% APR, you’d end up paying $82,859 in total interest over the life of your loan.

However, if you chose a 30-year mortgage at the same rate, your interest costs would jump significantly, and you’d pay $179,673 by the end of your loan term.

Amortization schedule on a $250,000 mortgage

An amortization schedule spells out the annual principal and interest costs for each year of a home loan and can be a good way to gauge the long-term costs of financing your house.

As the examples below show, your monthly mortgage payments go mostly toward interest at the beginning of your loan and more toward principal further into your term.

Here’s what an amortization schedule for a 30-year, $250,000 loan looks like, assuming a 4% APR:

YearBeginning balanceMonthly paymentTotal interest paidTotal principal paidRemaining balance
1250,000.00$1,193.54$9,919.87$4,402.59$245,597.41
2$245,597.41$1,193.54$9,740.50$4,581.96$241,015.45
3$241,015.45$1,193.54$9,553.82$4,768.64$236,246.81
4$236,246.81$1,193.54$9,359.54$4,962.92$231,283.90
5$231,283.90$1,193.54$9,157.34$5,165.11$226,118.78
6$226,118.78$1,193.54$8,946.91$5,375.55$220,743.23
7$220,743.23$1,193.54$8,727.90$5,594.56$215,148.68
8$215,148.68$1,193.54$8,499.97$5,822.49$209,326.19
9$209,326.19$1,193.54$8,262.75$6,059.70$203,266.48
10$203,266.48$1,193.54$8,015.87$6,306.59$196,959.90
11$196,959.90$1,193.54$7,758.93$6,563.53$190,396.37
12$190,396.37$1,193.54$7,491.52$6,830.93$183,565.44
13$183,565.44$1,193.54$7,213.22$7,109.24$176,456.20
14$176,456.20$1,193.54$6,923.58$7,398.88$169,057.32
15$169,057.32$1,193.54$6,622.14$7,700.32$161,357.00
16$161,357.00$1,193.54$6,308.42$8,014.04$153,342.96
17$153,342.96$1,193.54$5,981.91$8,340.55$145,002.41
18$145,002.41$1,193.54$5,642.10$8,680.36$136,322.05
19$136,322.05$1,193.54$5,288.45$9,034.01$127,288.05
20$127,288.05$1,193.54$4,920.39$9,402.07$117,885.98
21$117,885.98$1,193.54$4,537.34$9,785.12$108,100.86
22$108,100.86$1,193.54$4,138.68$10,183.78$97,917.08
23$97,917.08$1,193.54$3,723.77$10,598.68$87,318.40
24$87,318.40$1,193.54$3,291.97$11,030.49$76,287.90
25$76,287.90$1,193.54$2,842.57$11,479.89$64,808.02
26$64,808.02$1,193.54$2,374.86$11,947.60$52,860.42
27$52,860.42$1,193.54$1,888.10$12,434.36$40,426.05
28$40,426.05$1,193.54$1,381.50$12,940.96$27,485.10
29$27,485.10$1,193.54$854.27$13,468.19$14,016.91
30$14,016.91$1,193.54$305.55$14,016.91$0.00

And here’s what an amortization schedule for a 15-year, $250,000 loan looks like, assuming a 4% APR:

YearBeginning balanceMonthly paymentTotal interest paidTotal principal paidRemaining balance
1$250,000$1,849.22$9,774.00$12,416.63$237,583.37
2$224,660.86$1,849.22$9,268.13$12,922.51$224,660.86
3$211,211.87$1,849.22$8,741.65$13,448.99$211,211.87
4$197,214.94$1,849.22$8,193.71$13,996.92$197,214.94
5$182,647.76$1,849.22$7,623.46$14,567.18$182,647.76
6$167,487.10$1,849.22$7,029.97$15,160.67$167,487.10
7$151,708.76$1,849.22$6,412.30$15,778.34$151,708.76
8$135,287.59$1,849.22$5,769.47$16,421.17$135,287.59
9$118,197.39$1,849.22$5,100.44$17,090.20$118,197.39
10$100,410.91$1,849.22$4,404.16$17,786.48$100,410.91
11$81,899.79$1,849.22$3,679.51$18,511.1$81,899.79
12$62,634.49$1,849.22$2,925.34$19,265.30$62,634.49
13$42,584.30$1,849.22$2,140.44$20,050.19$42,584.30
14$21,717.23$1,849.22$1,323.57$20,867.07$21,717.23
15$0.00$1,849.22$473.41$21,717.23$0.00

How to get a $250,000 mortgage

If you’ve weighed both the upfront and long-term costs of a $250,000 mortgage and are comfortable moving forward, it’s time to start the mortgage process.

how to get a mortgage flowchart-square

Here are the steps to follow to get a mortgage:

  1. Estimate your home budget: Tally up your monthly household income, as well as your debts, bills, and other regular costs, and see how much you can comfortably afford. You can use a mortgage calculator to gauge the monthly payment for a particular home price, but don’t forget to factor in other housing costs too, like maintenance and HOA dues.
  2. Review your credit report: Your credit will play a factor in what mortgage rate you qualify for, so have a clear picture of where you stand. If your report shows lots of debt or your score is low, you might want to take some time cleaning up your credit before applying for the loan.
  3. Get pre-approved: A mortgage pre-approval can give you a good idea of how much you might be able to borrow, and it can be a good guideline for what price range you should start shopping in. Pre-approvals also give sellers more confidence in your offers.
  4. Shop around for mortgage rates: Mortgage rates vary widely, so it’s incredibly important you shop around for your loan. Once you get quotes from several lenders, be sure to compare each line by line, particularly on the APR, origination fees, and closing costs. You can also look into mortgage points, which could lower your interest rate (for a fee).
  5. Negotiate the home purchase details: You’ll then start the search for your dream home. Once you find a property you like, you’ll put in an offer and negotiate the details. If the seller accepts, you’ll move forward with your chosen mortgage lender.
  6. Complete the full mortgage application: It’s now time to fill out your lender’s full mortgage application and provide any required financial documentation. This usually includes tax returns, W-2s, bank statements, and recent pay stubs.
  7. Get approved by an underwriter: Your loan will next move into underwriting, which is when your lender verifies your information and makes sure you have the financial capabilities to repay the loan. This is the last big hurdle before closing on your loan.
  8. Prepare for closing: You’ll eventually be assigned a closing date, which is when you’ll finalize the transaction and take ownership of the home. Before this date rolls around, make sure you’ve secured a home insurance policy. Your lender will require it before approving the loan.
  9. Close on your mortgage: The last step is attending your closing appointment and signing the final paperwork. You’ll also pay your closing costs and down payment, and once all is said and done, you’ll be given the keys to your new home.

Keep Reading: How to Buy a House: Step-by-Step Guide

About the author
Aly J. Yale
Aly J. Yale

Aly J. Yale is a mortgage and real estate authority. Her work has appeared in Forbes, Fox Business, The Motley Fool, Bankrate, The Balance, and more.

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