Purchasing a house is a major milestone for many people—and for most it’s the biggest purchase of their lives.

But before getting swept up in the excitement, it's important to determine the monthly mortgage payment and whether you can comfortably afford it.

This article will break down—step-by-step—how much a mortgage payment on a $350,000 house will be. You’ll also learn how factors like interest rates, loan terms, and down payments can drastically impact your monthly costs.

Factors that determine your monthly mortgage payment

When applying for a home loan, you'll notice many options and factors affecting the final mortgage payment. Here are some of the most important ones to consider:

Interest rates

Arguably, the biggest variable affecting monthly costs is the interest rate you secure when calculating “How much is a $350,000 mortgage?”

The interest rate you’ll pay is the percentage of the total amount of your loan the lender charges annually for the money borrowed.

Mortgage interest rates fluctuate often and are influenced by broader economic conditions. But generally, excellent credit (760+ score) can help lock in more favorable rates.

For reference, in the fall of 2023, the average 30-year fixed mortgage rates hovered between 7% and 8%. For the examples below, we'll use 7.5%.

Loan term

Another major consideration is the duration of the loan, also called the term. Common terms for mortgages are 15 or 30 years.

Opting for the shorter 15-year term means paying off the loan faster. But your monthly payments will be higher because you're squeezing all the principal and interest into fewer years.

A 30-year term has lower monthly payments because the total loan amount is stretched over decades. But you also pay significantly more interest over the life of the loan.

Down payment amount

The down payment refers to the upfront percentage of the home's purchase price that you pay. Your down payment amount directly affects how much you'll need to borrow.

Once, 20% down payments were standard. But in recent years, options like 3%-5% down payments have become more popular.

How much is the monthly payment on a 350k mortgage?

How much would a $350,000 mortgage cost per month with a 30-year loan

For a $350,000 home with a 30-year fixed rate mortgage at 7.5% interest, here are estimated payments:

  • with a 5% ($17,500) down payment: $2,315/month
  • with a 10% ($35,000) down payment: $2,200/month
  • with a 20% ($70,000) down payment: $2,025/month

The greater the down payment, the less you’ll have to borrow, which significantly reduces your monthly payment. But as you can see, you have to come up with substantially more cash up front.

What about a 15-year loan on a $350k mortgage at the same 7.5% interest rate?

  • with a 5% down payment: $2,870/month
  • with a 10% down payment: $2,715/month
  • with a 20% down payment: $2,485/month

Clearly, the 15-year term increases monthly costs substantially compared to the 30-year loan. You'll pay off the loan much faster, but your monthly budget needs to accommodate the larger payment.

The total cost of a $350k house

Up to this point, the focus has been on principal and interest portions of the monthly mortgage payment. But you’re probably wondering, “How much will my mortgage be on a $350k house with all costs included?”

Here are some ballpark figures to factor in.

Property Taxes

Local property taxes levied on the home will add to the monthly costs. Exact amounts vary drastically depending on location. But expect to budget an additional $200—$500 per month in most cases.

Homeowners Insurance

Lenders require this insurance to protect against damage and liability. Expect to pay as much as $100—$300 per month depending on factors like home value and location.

Private Mortgage Insurance (PMI)

If your down payment is less than 20%, you'll likely pay PMI until you reach 20% equity in the home. This added insurance protects the lender if you default.

Budget an extra $150—$300 per month for PMI premiums. The exact amount depends on your credit score and loan details.

How to determine your optimal monthly payment

As the mortgage payment examples illustrate, you have options based on a down payment, loan term, and interest rate. Here are some tips for choosing the right model for your situation:

  • Get pre-approved first to understand your estimated pricing, then budget accordingly. Rates and terms vary daily, so lock in quickly once you're under contract.
  • Consider a 30-year term if cash flow is tight. You can always make extra principal payments as your budget allows to pay off the loan faster.
  • Maximize your down payment if possible, even if it means saving longer and delaying buying. The larger the down payment, the lower your monthly costs and interest paid over the loan term.
  • Use online mortgage calculators to estimate payments under different scenarios. Experiment to find your budget's optimal balance of down payment, rate, and term.
  • Account for taxes, insurance, and PMI when determining the final monthly mortgage payment you can truly afford. Build in a 15% buffer as costs may rise over time.

How to land the best deal

As you can see, mortgage payments can vary widely, even on a $350,000 home. To determine your personalized rate, term, and payment, it's essential to take action:

Check your credit score and report. If needed, take steps to improve it to qualify for the best rates. Rates differ significantly between scores of, say, 620 vs 740 when deciding how much a $350 000 mortgage will cost.

Explore multiple lender options, including banks, credit unions, and online lenders. Compare interest rate quotes and closing cost estimates.

Get pre-approved once you're ready to start home shopping. This shows sellers you're serious. And remember to lock in your rate before it rises.

Use web calculators to experiment with various down payment and term scenarios to find the optimal monthly payment for your situation. Don't forget to budget for taxes and insurance.

Consider consulting a fee-only financial planner if you need help assessing home payment affordability and how it fits within your overall financial goals.

Buying a house is a major (and exciting) commitment.

With thoughtful preparation using the tips in this guide, you can feel confident you've taken out a mortgage that aligns with your long-term budget.