Mortgage Example
$300,000 Mortgage — 30-Year Payment Example
Monthly payment, total interest, and amortization for a $300,000 mortgage over 30 years at 7% APR.
Scenario
A $300,000 home loan at 7.0% APR, 30-year fixed rate.
Inputs
Loan Amount$300,000
Annual Rate7.0%
Term30 years
Results
Monthly Payment$1,996
Total Paid$718,527
Total Interest$418,527
Break-even (vs renting)~5–7 years
Explanation
A $300k mortgage at 7% costs nearly $2,000/month. Over 30 years you pay $418k in interest — more than the original loan. Early payments are mostly interest; equity builds slowly in the first decade.
Key Takeaways
- 10% down ($330k purchase) brings PMI into play below 20% equity.
- Each 0.5% rate reduction saves ~$100/month on this loan size.
- Biweekly payments (26 half-payments/year) cut ~3 years off the term.