Over the life of a $350,000 mortgage with a 7% interest rate, borrowers could expect to pay from $216,229 to $488,233 in total interest, depending on whether they opt for a 15-year or 30-year loan term. But the actual cost of a mortgage depends on several factors, including the interest rate, and whether you have to pay private mortgage insurance.
Besides interest, homebuyers need to account for a down payment, closing costs, and the long-term costs of taxes and insurances that are included in a $350,000 mortgage payment.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Cost of a $350,000 Mortgage
When you finance a home purchase, you have to pay back more than the borrowed amount, known as the loan principal. The total cost of taking out a $350,000 mortgage is $838,281 with a 30-year term at a 7% interest rate. This comes out to $488,233 worth of interest, assuming there aren’t any late monthly mortgage payments or pre-payments.
When you buy a home, there are usually some upfront costs you’ll have to pay, too. Mortgages often require a down payment, calculated as a percentage of home purchase price, that’s paid out of pocket to secure financing from a lender. The required amount varies by loan type and lender, but average down payments range from 3% – 20%.
Closing costs, including home inspections, appraisals, and attorney fees, represent another upfront cost for real estate transactions. They typically sum up to 3% to 6% of the loan principal, or $10,500 to $21,000 on a $350,000 mortgage.
The total down payment on $350,000 mortgages also impacts the total cost of taking out a home loan. Unless buyers put 20% or more down on a home purchase, they’ll have to pay private mortgage insurance (PMI) with their monthly mortgage payment. The annual cost of PMI is generally between 0.5% – 1.5% of the loan principal. Borrowers can get out of paying PMI with a mortgage refinance or when they reach 20% equity in their home. If this is your first time in the housing market, consider reading up on tips to qualify for a mortgage.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
Monthly Payments for a $350,000 Mortgage
The monthly payment on a $350K mortgage won’t always be the same amount. You’ll need to factor in your down payment, interest rate, and loan term to estimate your $350,000 mortgage monthly payment.
With a 30-year loan term and 7% interest rate, borrowers can expect to pay around $2,328 a month. Whereas a 15-year term at the same rate would have a monthly payment of approximately $3,146. However, these estimates only account for the loan principal and interest. Monthly mortgage payments also include taxes and insurances, but these costs can differ considerably by location and based on a home’s assessed value.
There are also different types of mortgages to consider. Whether you opt for a fixed vs adjustable-rate mortgage, for instance, will affect your monthly payment.
To get a clearer idea of what your monthly payment might be with different down payments and loan terms, try using a mortgage calculator.
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Where to Get a $350,000 Mortgage
Homebuyers have many options in terms of lenders, including banks, credit unions, mortgage brokers, and online lenders.
The homebuying process can be stressful, so it may be tempting to go with the first mortgage offer you receive. However, shopping around and getting loan estimates from multiple lenders lets you choose the one that’s the most competitive and cost-effective.
Even a fraction of a percentage point difference on an interest rate can add up to thousands in savings over the life of a mortgage. Besides the interest rate, assess the fees, terms, and closing costs when comparing mortgage offers.
Recommended: Home Loan Help Center
What to Consider Before Applying for a $350,000 Mortgage
When taking out a mortgage, it’s important to consider the total cost of the loan. You’ll need cash on hand for a down payment and closing costs, plus sufficient income and funds to cover the monthly payment and other homeownership costs.
Before applying for a $350,000 mortgage, crunching the numbers in a housing affordability calculator can give a better understanding of how these costs will work with your finances.
It’s also helpful to see how $350,000 mortgage monthly payments are applied to the loan interest and principal over the life of the loan. The majority of the monthly mortgage payment goes toward interest rather than paying off the loan principal, as demonstrated by the amortization schedules below.
Here’s the mortgage amortization schedule for a 30-year $350,000 mortgage with a 7% interest rate — which would amount to $488,233 in interest. For comparison, we’ve also included the mortgage amortization schedule for a 15-year $350,000 mortgage with a 7% interest rate. A $350,000 mortgage payment, 15 years’ out, would add up to $216,229 in interest. When weighing a 30-year vs 15-year loan term, the shorter loan term carries a higher monthly payment but less than half the total interest over the life of the loan.
Amortization Schedule, 30-year Mortgage at 7%
| Year | Beginning Balance | Total Interest Paid | Total Principal Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $350,000 | $24,386 | $3,555 | $346,425 |
| 2 | $346,425 | $24,129 | $3,812 | $342,613 |
| 3 | $342,613 | $23,853 | $4,088 | $338,525 |
| 4 | $338,525 | $23,558 | $4,383 | $334,142 |
| 5 | $334,142 | $23,241 | $4,700 | $329,442 |
| 6 | $329,442 | $22,901 | $5,040 | $324,402 |
| 7 | $324,402 | $22,537 | $5,404 | $318,998 |
| 8 | $318,998 | $22,146 | $5,795 | $313,203 |
| 9 | $313,203 | $21,717 | $6,214 | $306,989 |
| 10 | $306,989 | $21,278 | $6,663 | $300,326 |
| 11 | $300,326 | $20,796 | $7,145 | $293,182 |
| 12 | $293,182 | $20,280 | $7,661 | $285,520 |
| 13 | $285,520 | $19,726 | $8,215 | $277,306 |
| 14 | $277,306 | $19,132 | $8,809 | $268,497 |
| 15 | $268,497 | $18,496 | $9,446 | $259,051 |
| 16 | $259,051 | $17,813 | $10,128 | $248,923 |
| 17 | $248,923 | $17,081 | $10,861 | $238,062 |
| 18 | $238,062 | $16,295 | $11,646 | $226,417 |
| 19 | $226,417 | $15,454 | $12,488 | $213,929 |
| 20 | $213,929 | $14,551 | $13,390 | $200,539 |
| 21 | $200,539 | $13,583 | $14,358 | $186,181 |
| 22 | $186,181 | $12,545 | $15,396 | $170,784 |
| 23 | $170,784 | $11,432 | $16,509 | $154,275 |
| 24 | $154,275 | $10,238 | $17,703 | $136,573 |
| 25 | $136,573 | $8,959 | $18,982 | $117,590 |
| 26 | $117,590 | $7,586 | $20,355 | $97,236 |
| 27 | $97,236 | $6,115 | $21,826 | $75,409 |
| 28 | $75,409 | $4,537 | $23,404 | $52,006 |
| 29 | $52,006 | $2,845 | $25,096 | $26,910 |
| 30 | $26,910 | $1,031 | $26,910 | $0 |
Amortization Schedule, 15-year Mortgage at 7%
| Year | Beginning Balance | Total Interest Paid | Total Principal Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $350,000 | $24,065 | $13,684 | $336,296 |
| 2 | $336,296 | $23,076 | $14,673 | $321,624 |
| 3 | $321,624 | $22,015 | $15,733 | $305,890 |
| 4 | $305,890 | $20,878 | $16,871 | $289,020 |
| 5 | $289,020 | $19,658 | $18,090 | $270,929 |
| 6 | $270,929 | $18,351 | $19,398 | $251,531 |
| 7 | $251,531 | $16,948 | $20,800 | $230,731 |
| 8 | $230,731 | $15,445 | $22,304 | $208,427 |
| 9 | $208,427 | $13,832 | $23,916 | $184,510 |
| 10 | $184,510 | $12,103 | $25,645 | $158,865 |
| 11 | $158,865 | $10,249 | $27,499 | $131,366 |
| 12 | $131,366 | $8,261 | $29,487 | $101,879/td> |
| 13 | $101,879 | $6,130 | $31,619 | $70,260 |
| 14 | $70,260 | $3,844 | $33,904 | $36,355 |
| 15 | $36,355 | $1,393 | $36,355 | $0 |
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How to Get a $350,000 Mortgage
To qualify for a $350,000 mortgage, borrowers will need to meet the income, credit, and down payment requirements. It’s also important to have an adequate budget for long-term housing costs and other financial goals and obligations like savings and debt.
Using the 28/36 rule, a monthly mortgage payment shouldn’t be more than 28% of your monthly gross income and 36% of your total debt to be considered affordable. With a $2,328 monthly mortgage payment, you’d need a minimum gross monthly income of at least $8,300, or annual income of $96,600, to follow the 28% rule. Similarly, your total debt could not exceed $660 to keep housing and debt costs from surpassing 36%.
Home mortgage loans, with the exception of certain government-backed loans, require a minimum credit score of 620 to qualify. However, a higher credit score can help secure more competitive rates. If you qualify as a first-time homebuyer, you could get a FHA loan with a credit score of 500 or higher, though borrowers with a credit score below 580 will have to make a 10% down payment.
As mentioned above, it’s a good idea to compare lenders and loan types to find the most favorable rate and loan terms. From there, getting preapproved for a home loan is a logical next step to determine the loan amount and interest rate you qualify for. It also puts you in a better position to demonstrate you’re a serious buyer when making an offer on a property.
After putting in an offer, completing the mortgage application requires many of the same forms used for preapproval, plus an earnest money deposit.
💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.
The Takeaway
Buying a home is the largest purchase many Americans make in their lifetime. How much you’ll end up paying for a $350,000 mortgage depends on the interest rate and loan term. On a $350,000 mortgage, the monthly payment can range from $2,328 to $3,146 based on these factors.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How much is a $350K mortgage a month?
The cost of a $350,000 monthly mortgage payment is influenced by the loan term and interest rate. On a $350K mortgage with 7% interest, the monthly payment ranges from $2,328 to $3,146 depending on the loan term.
How much income is required for $350,000 mortgage?
Income requirements can vary by lender. But using the 28/36 rule, a borrower who isn’t burdened by lots of other debts should make $99,600 a year to afford the monthly payment on a $350,000 mortgage.
How much is a down payment on a $350,000 mortgage?
The down payment amount depends on the loan type and lender terms. FHA loans require down payments of 3.5% or 10%, while buyers could qualify for a conventional loan with as little as 3% down.
Can I afford a $350K house with a $70K salary?
It may be possible to afford a $350,000 house with a $70,000 salary, but only if you are able to make a sizable down payment to lessen the amount of money you need to borrow. Having a good credit score and minimal debt would also better your chances.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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