Mortgage Example
$400,000 Mortgage — 30-Year Payment Example
Monthly payment and total cost for a $400,000 mortgage at 7% over 30 years.
Scenario
$400,000 home loan, 7.0% APR, 30-year fixed.
Inputs
Loan Amount$400,000
Rate7.0%
Term30 years
Results
Monthly Payment$2,661
Total Paid$958,036
Total Interest$558,036
Explanation
A $400k mortgage at 7% costs $2,661/month — nearly $32k/year. The total interest over 30 years is $558k, making the true cost nearly $1 million. A 20% down payment on a $500k home leads to this loan amount.
Key Takeaways
- 20% down avoids PMI (~$200/month on $500k home).
- At 6%, payment drops to $2,398 — saving $263/month.
- Extra $200/month cuts term by ~4.5 years.