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This article first appeared on the Credible blog.
A $350,000 mortgage will more than cover the median price of an existing home, which currently costs $310,800, according to data from the National Association of Realtors.
If you’re considering a loan of this size, use this guide to understand both the monthly payment and long-term costs you can expect as a borrower.
Credible can help you compare mortgage rates from multiple lenders in just a few minutes and put you on the path to pre-approval.
Monthly payments for a $350,000 mortgage
Monthly mortgage payments always contain two things: principal and interest. In some cases, they might include other costs as well.
Here’s what typically makes up a mortgage payment:
- Principal: This money is applied straight to your loan balance.
- Interest: The cost of borrowing the money. How much you’ll pay is indicated by your interest rate.
- Escrow costs: If you opt to use an escrow account (or your lender requires it), you’ll also have your property taxes, mortgage insurance, and homeowners insurance rolled into your monthly mortgage payment, too.
On a $350,000, 30-year mortgage with a 3% APR, you can expect a monthly payment of $1,264.81, not including taxes and interest (these vary by location and property, so they can’t be calculated without more detail).