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How Much a $400,000 Mortgage Will Cost You

A $400,000 mortgage comes with many costs — some included in your monthly mortgage payment, some not. Comparing lenders and loan terms is critical to getting the lowest-cost loan possible.

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By Aly J. Yale

Written by

Aly J. Yale

Writer

Aly J. Yale is a personal finance journalist with work featured in Forbes, Fox Business, The Motley Fool, Bankrate, The Balance, and more.

Edited by Reina Marszalek

Written by

Reina Marszalek

Senior editor

Reina is a senior mortgage editor at Credible and Fox Money.

Updated February 9, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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Mortgage loans come with a variety of costs — not just a monthly payment. On a mortgage as large as $400,000, these costs may be significant, so it’s important to weigh them carefully before applying for the loan.

This will ensure you can comfortably afford the mortgage — both now and over the long haul.

Learn more about how much a $400,000 mortgage will cost you throughout the life of the loan:

Monthly payments for a $400,000 mortgage

On a $400,000 mortgage with an interest rate of 6%, your monthly payment would be $2,398 for a 30-year loan and $3,375 for a 15-year one.

Keep in mind, though: Monthly mortgage payments don’t just go toward lowering your loan balance, but also toward a number of other expenses, too — things like taxes and insurance, for example.

Here’s a look at what generally goes into a mortgage payment:

  • Principal: This is a portion of your payment that goes straight toward whittling down your balance. It’s typically a very small share of your payment at the start of your loan.
  • Interest: This covers the cost of borrowing your loan. It’s usually the largest share of your payment for the first few years of your loan.
  • Escrow costs: Most lenders require an escrow account to stow away cash for property taxes and homeowners insurance. You’ll pay money into this account each month as part of your mortgage payment.

Here’s a quick look at what the monthly principal and interest payment would be for a $400,000 mortgage with varying rates:

Annual Percentage Rate (APR)
Monthly payment (15 year)
Monthly payment (30 year)
6.00%
$3,375.43
$2,398.20
6.25%
$3,429.69
$2,4625.87
6.50%
$3,484.43
$2,528.27
6.75%
$3,539.64
$2,594.39
7.00%
$3,595.31
$2,661.21
7.25%
$3,651.45
$2,728.71
7.50%
$3,708.05
$2,796.86

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Check Out: 15- vs. 30-Year Mortgage: Which One's Right for You?

Where to get a $400,000 mortgage

Shopping around for your mortgage is critical if you want to get the lowest interest rate. To do this, you’ll need to apply with several mortgage lenders directly.

Once you have a few loan estimates in hand, you can compare the costs of each lender one by one. Make sure to look at the APR, origination fee, mortgage points, and the total cash you’ll need to bring to closing.

From there, you can choose the best offer, proceed with the lender’s full application, and provide any financial documentation they might require.

You can also use Credible to compare lender options. Our process is entirely online, and it only takes a few minutes.

What to consider before applying for a $400,000 mortgage

Before you take out a loan as large as $400,000 — or any mortgage loan, really — you’ll need to understand the total costs of the loan.

You should know what your closing costs and monthly payment will be, how much you’ll need for a down payment, and the total interest you’ll pay over time.

Total interest paid on a $400,000 mortgage

The total interest you’ll pay will depend on both your APR and the length of your loan. Longer loan terms and higher APRs will result in more interest costs in the long run.

On a 15-year, $400,000 mortgage loan with a 6% interest rate, for example, you’d pay $207,577 in total interest by the end of your loan term.

On a 30-year loan with the same details, your interest costs would jump to $463,353 — a shocking $255,776 more.

Check Out: How To Buy a House: Step-by-Step Guide

Amortization schedule on a $400,000 mortgage

An amortization schedule, which breaks down the principal and interest payments for a loan, can help you understand the long-term costs of your mortgage.

As you’ll see below, the bulk of your payments will go toward interest costs initially. Once you get further into your loan term, more of your payments go toward your loan balance, and you’ll start reducing that principal at a faster rate.

Here’s what an amortization schedule looks like for a 30-year, $400,000 mortgage with an APR of 6%:

Year
Beginning balance
Monthly payment
Total interest paid
Total principal paid
Remaining balance
1
$400,000.00
$2,398.20
$23,866.38
$4,912.05
$395,087.95
2
$395,087.95
$2,398.20
$23,563.41
$5,215.01
$389,872.94
3
$389,872.94
$2,398.20
$23,241.76
$5,536.66
$384,336.28
4
$384,336.28
$2,398.20
$22,900.27
$5,878.15
$378,458.13
5
$378,458.13
$2,398.20
$22,537.72
$6,240.70
$372,217.43
6
$372,217.43
$2,398.20
$22,152.81
$6,625.62
$365,591.81
7
$365,591.81
$2,389.20
$21,744.16
$7,034.27
$358,557.54
8
$358,557.54
$2,398.20
$21,310.30
$7,468.13
$351,089.42
9
$351,089.42
$2,398.20
$20,849.68
$7,928.74
$343,160.67
10
$343,160.67
$2,398.20
$20,360.65
$8,417.77
$334,742.90
11
$334,742.90
$2,398.20
$19,841.46
$8,936.96
$325,805.94
12
$325,805.94
$2,398.20
$19,290.25
$9,488.17
$316,317.76
13
$316,317.76
$2,398.20
$18,705.04
$10,073.38
$306,244.38
14
$306,244.38
$2,398.20
$18,083.74
$10,694.69
$295,549.69
15
$295,549.69
$2,398.20
$17,424.11
$11,354.31
$284,195.38
16
$284,195.38
$2,398.20
$16,723.80
$12,054.62
$272,140.76
17
$272,140.76
$2,398.20
$15,980.30
$12,798.13
$259,342.63
18
$259,342.63
$2,398.20
$15,190.94
$13,587.49
$245,755.14
19
$245,755.14
$2,398.20
$14,352,89
$14,425.53
$231,329.61
20
$231,329.61
$2,398.20
$13,463.16
$15,315.27
$216,014.34
21
$216,014.34
$2,398.20
$12,518.55
$16,259.88
$199,754.47
22
$199,754.47
$2,398.20
$11,515.67
$17,262.75
$182,491.71
23
$182,491.71
$2,398.20
$10,450.94
$18,327.48
$164,164.23
24
$164,164.23
$2,398.20
$9,320.54
$19,457.88
$144,706.35
25
$144,706.35
$2,398.20
$8,120.42
$20,658.00
$124,048.35
26
$124,048.35
$2,398.20
$6,846.28
$21,932.14
$102,116.21
27
$102,116.21
$2,398.20
$5,493.56
$23,284.87
$78,831.34
28
$78,831.34
$2,398.20
$4,057.40
$24,721.03
$54,110.31
29
$54,110.31
$2,398.20
$2,532.66
$26,245.77
$27,864.55
30
$27,864.55
$2,398.20
$913.88
$27,864.55
$0.00

And here’s what an amortization schedule looks like for a 15-year, $400,000 mortgage with an APR of 6%:

Year
Beginning balance
Monthly payment
Total interest paid
Total principal paid