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As with any construction project, the cost to build apartment complexes differs, based on many factors. The national average is around $12.5 million, but the range varies considerably based on the square footage, number of units, and type of apartment complex.

For anyone considering building apartments, it can be helpful to know what influences the cost early in the process.

What Determines the Cost of Building Apartments?

So, how much does it cost to build an apartment complex? Some design choices, like the number of stories, will increase the cost more than others. Here’s what you need to know about different cost factors to calculate the project budget and other things to consider if you’re thinking of building a house or apartment.

Location

Where you plan to build an apartment complex will impact the cost. Land prices vary across the U.S., with New Jersey ranking among the most expensive at $242,900 for one acre on average. On the lower end, Wyoming is the most affordable with an average cost per acre of $54,000.

Square Footage

The cost to build a townhouse is impacted by the size, which is measured in square feet. Generally speaking, the larger the size, the higher the cost. How much it costs to build apartments is subject to many cost factors, but the price range for an apartment complex falls between $95 and $645 per square foot. The average price comes in at around $398 a square foot.

Number of Units

The number of units in an apartment complex is another way to assess construction cost. The cost of a single unit spans from $70,000 to $200,000.

This wide cost range is due to other apartment characteristics, such as the square footage, finishings, and materials used. Whether you plan to design units as a condo or apartment may impact the type of amenities offered and overall design, which impacts the cost per unit.

Replicating the same floor plan across apartments is one strategy to reduce the total cost per unit.

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Type

There are different types of apartment complexes, including infill, low-rise, mid-rise, and high-rise.

•   Infill: This type of apartment is constructed on land in a neighborhood that is already largely developed, which generally limits the size of the structure to a duplex or triplex apartment. Building an infill apartment costs between $95 and $205 per square foot on average.

•   Low-rise: This generally involves apartment complexes with four or fewer stories. Low-rise apartments may be built with wood and have an average construction cost of $180 to $275 per square foot.

•   Mid-rise: This includes apartments between five and 10 stories which involve more complex design elements, such as elevators, double-sided corridors, and use of concrete and steel in construction. The average price to build a mid-rise apartment averages $210 to $310 per square foot.

•   High-rise: This type of apartment has 11 or more stories and usually requires more permitting, a driven pile foundation, and use of concrete and steel. High-rise apartments range in cost from $270 to $675 per square foot.

Whether an apartment complex includes mixed uses, such as ground floor storefronts or a basement parking garage, will affect the construction cost.

Recommended: Different Types of Houses

Number of Stories

How much does it cost to build apartment complexes by story? In most cases, the taller the building, the greater the expense. Mid- and high-rise apartment buildings usually require pricier materials, such as concrete and steel. Meanwhile, low-rise apartments may be built with wood, which is comparatively less expensive. Labor costs may also increase for apartments with a higher number of stories.

Prefab Apartment Building Cost

Option for prefab or modular construction is a potential cost saving opportunity. The uniform nature of these apartments reduces design expenses, plus the materials are manufactured off-site, reducing labor costs and weather-related delays. Prefab apartment buildings run from $150 to $400 per square foot on average. This construction style can be applied across apartment types, too.

💡 Quick Tip: One answer to rising house prices is a jumbo loan. Apply for a jumbo loan online with SoFi, and you could finance up to $2.5 million with as little as 10% down. Get preapproved and you’ll be prepared to compete in a hot market.

Apartment Building Construction Cost Breakdown

There are many factors that impact the cost of building an apartment. Although every apartment complex is unique, you can get a rough estimate of the total project expenditure by breaking down the costs by category. Here’s what you can expect to pay for different elements of the project.

•   Architects: 8-10% of the total cost

•   Builder or general contractor: 25%

•   Structural engineer: 1.5%

•   Foundation: 9%

•   Floor structure: 12%

•   Flooring: 5%

•   Masonry walls: 9-10%

•   Wood walls: 6-10%

•   Roof: 10%

•   Plumbing: 12%

•   Windows and doors: 5%

•   Kitchen: 8%

•   Electrical: 10%

•   Interior features: 3-5%

•   Interior finish: 10%

Recommended: Tips for Buying a New Construction Home

Factors Affecting the Cost of Constructing an Apartment Building

There are many moving parts and cost categories that affect the construction cost of an apartment building. Besides the labor and materials expenses outlined above, it’s also important to consider soft costs and paying for building and zoning permits.

Soft costs can include fees for services like interior design, legal support, and interest and fees on a construction or home loan. When talking to lenders, it can be helpful to ask mortgage questions to identify the estimated closing costs and what fees apply. Using a mortgage calculator can help you get a sense of the financing that might be necessary for a home purchase.

Average Maintenance Cost for an Apartment Complex

A newly constructed apartment could have less maintenance costs for an initial period while equipment and building structures are in good condition. However, it’s recommended to set aside a portion of rental income each month to ensure you have sufficient funds for routine maintenance and emergency repairs.

Following the 1% rule, for example, involves budgeting one percent of the property value each year for maintenance costs. For a $2 million apartment building, this would amount to $20,000 a year for maintenance. Doing the maintenance yourself is one way to keep costs down, but this may not be feasible for larger apartment complexes.

If you plan to sell your apartments to individual owners, then maintenance could be handled through a homeowners association (HOA). As members of a HOA, apartment owners pay dues through monthly fees that support the cost of maintenance, which can vary depending on the extent of a complex’s amenities.

Recommended: How to Buy an Apartment

Cost of Owning an Apartment Complex

Besides maintenance, owning an apartment complex can involve costs associated with property taxes, amenities, insurance, and staff. If you finance the construction or work with investors, you may also need to make loan payments or divide profits between shareholders in the business.

Enhancement and Improvement Costs

Building a luxury apartment building or complex will likely entail greater enhancement and improvement costs. This may include high-end appliances, on-site parking, and dedicated outdoor space for each unit.

Luxury properties often have numerous communal amenities too, such as fitness centers, pools, and outdoor recreational areas. These upgrades bring the average cost of a luxury apartment to $550 to $650 per square foot.

A construction loan is an option to pay for the added enhancement and improvement costs. For a thorough review and tips on financing options, check out a home loan help center and compare different types of mortgages.

The Takeaway

How much does it cost to build an apartment complex? The total project cost will depend on a variety of factors, including the location, number of units, size, and design of the apartment but you can figure it is in the neighborhood of $398 per square foot. There are government-backed loans and private loan options for financing the cost to build an apartment complex.

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much does an apartment complex cost?

The cost of an apartment complex varies considerably based on location, size, and other factors. With an average price of $398 per square foot, the estimated cost of a 10,000 square-foot apartment complex would be $3.98 million.

Do apartment buildings hold their value?

Apartment buildings that are well-maintained are likely to hold or increase their value over time.

How many units are in an apartment complex on average?

The number of units differs significantly depending on the size of the complex. Larger, high-rise buildings may have hundreds of units while an infill building built on a lot in an existing neighborhood might have only a few units.

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Photo credit: iStock/AlbertPego

*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.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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.

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Townhouses offer convenience and amenities that appeal to a range of homebuyers. They’re also growing in popularity, with new townhouse construction up more than 28% from 2020 to 2021. Construction costs also increased during the same time period.

Whether you’re building an investment property or your own new home, determining the project cost is essential before breaking ground. The cost to build townhouses depends on the size, location, number of units, onsite amenities, and the style of the building.

What Is a Townhouse?

A townhouse, also called a townhome, is a type of single-family home that has two or more floors and a shared wall with at least one other home. Compared to different home types, like duplexes and triplexes, each townhouse is individually owned and has its own entrance. Given the high-density design, townhouses tend to be more common in urban and suburban communities.

Townhouses often have their own yard or garage, but may share other communal amenities, such as a pool or tennis court, with neighboring townhouses. These shared facilities are typically governed by a homeowner’s association (HOA), which townhouse owners pay fees to for managing amenities and providing services like landscaping and snow removal.

If choosing between a condo or townhouse, another distinction is that townhomes usually have more autonomy in customizing the exterior of their home and outdoor living space, and more responsibility for that space as well.

Recommended: What is a Townhouse?

What Determines the Cost of Building a Townhouse?

The cost to build townhomes depends on a variety of factors. The type of townhouse, size, number of units, location, and additions like garages and basements all contribute to the total construction cost.

Here’s what to consider when estimating how much to build a townhouse.

Type of Townhouse

There are different types of townhouse layouts and configurations, including traditional, stacked, and urban.

•   Traditional: Generally organized in a row with two floors of living space, a basement, and garage.

•   Stacked: Refers to townhouse units stacked in a multi-floor building, which typically have their own entrances.

•   Urban: Similar to traditional townhomes, but often have more modern and spacious floor plans and higher prices.

Another key decision when purchasing a new construction home or townhome is whether to go with a modular or stick-built design. The components of a modular townhome are manufactured off-site, saving time and labor.

Stick-built townhouses are constructed on-site using a wooden frame and finished with a brick or vinyl exterior. This type of construction allows for greater customization, but generally comes at a higher cost than modular townhomes.

Recommended: Pros and Cons of Building a Townhouse

Square Footage

The cost to build a townhouse is impacted by the size, which is measured in square feet.

Townhomes cost between $111 to $125 per square foot on average. Because townhouses share walls and occupy smaller lots, they’re often more affordable than detached single-family new construction, which breaks down to an average of $150 per square foot.

Using the square footage to estimate total townhome cost is a fairly straightforward calculation. For instance, builders can expect to pay between $222,000 and $250,000 to erect a 2,000-square-foot townhouse based on the average range. Bear in mind that does not include the cost of the building site.

With these estimates, you can compare mortgage rates and determine what financing you qualify for.

Number of Rooms

The interior layout, including the number and types of rooms, is a key determining cost factor.

Not all rooms are created equal though, with kitchens and bathrooms being the most expensive due to appliances, tiling, plumbing, and more complex electrical work. The living spaces and bedrooms are generally simpler and cheaper to build.

💡 Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.

Number of Units

By definition, townhouses are built in groups. Leveraging economies of scale to build multiple units or a complex could reduce the cost per unit. Keeping the design and floor plan consistent across units can also lower the price.

So, how much does it cost to build a townhouse complex? That depends on the extent of amenities included, as well as the number of units.

Location

Location, location, location. Where you choose to build a townhouse will impact the cost of construction and its value once completed.

The cost of labor varies significantly between regions. Paying builders and contractors typically accounts for 40% of new home construction expenditures. The location of the townhouse also matters in terms of costs related to accessing the site and sourcing materials.

Additions

Wondering how much to build townhomes with attractive amenities? Here’s what you can expect to pay for common townhome add-ons.

•   Basement: Building a basement foundation costs between $24,000 and $44,500 on average.

•   Driveway: The materials and installation costs for a new driveway range from $2 to $15 per square foot depending on the material used.

•   Fencing: More affordable fence materials like wood, vinyl, and composite range from $10 to $45 per linear foot.

•   Garage: Cost varies by size, with one-car garages ranging from $10,500 to $27,000 and double garages costing between $14,500 and $40,300.

•   Pool: Expect to pay between $28,000 and $66,500 for an in-ground pool, with vinyl and fiber-glass lining typically costing less than concrete.

•   Shed: Adding a storage shed ranges from $300 to $15,000, with pre-fabricated options usually costing less than custom builds.

💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.

Construction Cost for Building a Townhouse

Construction costs are often the deciding factor when thinking of buying or building a house. Townhouses are generally less expensive to build per unit than a detached single-family home.

In addition to the factors discussed above, townhouse construction involves a range of pre-construction costs, like purchasing land, building permits, and architectural or design fees. The materials and labor usually account for the majority of the expenses to build a townhouse.

Townhouses can be designed as starter homes or luxury properties, and project budgets can be structured according to the target market and expected return on investment. Still wading into the waters of homebuying? Consult a Home Loan Help Center for useful tips and guides to master the basics.

Recommended: Construction Loans for Building a House

The Takeaway

How much does it cost to build a townhouse? In short, it depends on the type of townhouse, size, number of units, location, and added amenities. But you can estimate roughly $111 to $125 per square foot or $225,000+ for a 2,000 square-foot abode, not including land cost.

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How many townhouses can fit on an acre?

The number of townhomes that can fit on an acre will depend on what’s permitted by local zoning, as well as space allocated for landscaping, parking, and other amenities. However, an acre can accommodate around 20 two- or three-story townhomes.

How much are utilities in a townhouse?

Utility costs vary by location, unit size, personal energy use, and equipment used for heating and cooling. Due to their smaller footprint, townhomes typically have lower utility bills than single-family homes.

Should I buy a townhouse or single-family home?

There are pros and cons with either type of home. Townhomes may require less maintenance and include extra amenities, while single-family homes can offer more space and discretion in how you design and decorate your home’s exterior.

What are the disadvantages of living in a townhouse?

Living in a townhouse can mean less privacy from your neighbors and noise from shared walls.

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Photo credit: iStock/vkyryl

*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.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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.

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A home title policy — also called title insurance — protects homeowners and lenders from claims and litigation stemming from title defects. Title insurance, according to the American Bar Association, allows for a secure transfer of ownership from one party to another.

To address top questions surrounding home title policies, we’ve compiled this guide. You’ll learn:

•   What is title insurance for a home?

•   How does it work?

•   What are common title issues?

•   What does the home title policy cover?

•   What are the different types of home title policies?

By the end, you still won’t be thrilled to pay this additional cost at closing, but you may understand better what it protects.

What Is a Home Title Policy?

A title policy on a home is an insurance policy that protects against title defects. Title issues aren’t common, but when they occur, the amount of money involved can be massive. Home title policies are required by lenders to protect their investment in your property. That’s right, just like mortgage insurance, it’s not really for you. In fact, these policies are also called lender’s title insurance policies.

Confusingly, you can also buy a home title policy that provides the exact same protection for you: This is called an owner’s title insurance policy. If you want to be completely protected as a homebuyer, you need to purchase both. (Ugh!)

What could go wrong that necessitates this layer of insurance? If, for example, the seller didn’t have the full right to sell the property because there was another property owner and the title company missed this in their title report, the title company is responsible for the error. The title company could pay for litigation costs or payouts for property owners.

Title issues that could potentially arise include:

•   Existing mortgages

•   Undisclosed heirs that have claims on the property

•   Tax or construction liens

•   Property line disputes

•   Judgments involving the property, such as in the case of a divorce

•   Deeds, wills, or trusts with errors

•   Easements or encroachments that may restrict access and/or devalue the property

•   Notary mistakes

•   Errors in public records

•   Fraud and forgeries

💡 Quick Tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with an online mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.

How Does a Home Title Policy Work?

There are two parts to a home title policy: a title search and a policy issuance. After real estate purchase contracts are written and the property is in escrow, homeowners select a title company to conduct a title search.

In the title search, the title company looks through public records for defects (or problems, like those listed previously). If the search turns up a mortgage lien issue, judgment, or other issue, it will need to be addressed before ownership can be transferred.

If the title search hasn’t revealed any issues, the title company will issue the policy when the transfer of ownership is recorded. The borrower pays a one-time fee for the home title policy in their closing costs.

Recommended: What Is Escrow?

What Does the Home Title Policy Cover?

The title search helps eliminate risk, but it’s still a possibility that title problems can arise. That’s where the title policy for a home comes in. After the policy has been issued, should any additional items come up, the title company will litigate those issues for the benefit of the lender — but only up to the amount of the loan. As the loan balance decreases, so does the amount of home title insurance coverage.

One important thing to note is the home title policy that you get is usually a lender’s title insurance policy. What this means is the lender is protected against legal claims against the home. The borrower’s claim to the home — their equity — is not protected unless the borrower also purchases an owner’s title policy.

💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.

Home Title Policy Requirements

Home title policies aren’t required by a governing body like a city or state — they’re required by the lender. When a borrower seeks funds for a home mortgage loan, the lender has certain requirements that the borrower must meet in order for them to issue that mortgage. One of these is a home title insurance policy. Borrowers must pay for a home title policy in order to close the loan. Lenders want to make sure the property the borrower selected is free to be bought and sold and their investment is protected.

Recommended: First-Time Homebuyer Programs

Pros and Cons of a Home Title Policy

It’s worth summing up the benefits and drawbacks of a home title policy.

Pros	Cons
The title search can reveal title defects before you close on a home.	Home title policies are required.
The title insurance can litigate up to the amount of the mortgage if there is an issue.	They’re expensive.
	If it’s a lender’s home title policy only, it won’t protect the equity in your home.

When buying a home, you’ll encounter lots of different types of insurance. It’s worth taking a few minutes to familiarize yourself with the definitions.

Types of Home Title Policies

As noted above, home title policies come in two types: lender’s title insurance and owner’s title insurance.

Lender’s home title policies protect the lender from losses that come from title issues or defects. If title issues arise, the title company will cover losses or litigate for the lender up to the amount of the mortgage.

Owner’s home title policies protect the amount of equity an owner has in the home. If someone has a claim or brings suit against the title of the home, it is possible homeowners could lose the amount of equity they have in their home.

Fees for these policies vary widely by state. But for a typical home valued at around $400,000, you can expect to pay about $2,000 to purchase both types of title insurance and to pay for the title search. Fortunately, this is a one-time cost — unlike other types of homeowners insurance you might buy, you won’t have to renew your title insurance every year.

The Takeaway

It’s not exciting to pay for a home title policy, but the expense is more palatable once you understand what it protects. If you purchase both lender’s and owner’s home title policies, you’ll be well protected in the event of an unexpected claim or ownership dispute on your new home.

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is it worth shopping around for title insurance?

Title insurance can be costly so it is worth it to shop around. The insurer your lender typically uses might be an affiliate. So there could be a financial benefit to your lender if you use their partner company, but that doesn’t mean there will be a financial benefit to you. Comparison shopping could save you money.

What is the disadvantage of title insurance?

The chief disadvantage of title insurance is its cost, and the fact that it is usually required by a lender. Beyond that, keep in mind that lender’s title insurance only covers the lender in the event of a title problem — it doesn’t protect the equity that you have in the home. For that, you would need a second owner’s title insurance policy.

What is the difference between title and mortgage insurance?

Lender’s title insurance, which is paid for by the borrower, protects the lender in the event that a title dispute arises on the property. Mortgage insurance protects the lender in the event that the borrower defaults on the loan.

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Photo credit: iStock/Wasan Tita

*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.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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.

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Considering taking out a $350K mortgage to purchase a home? It’s important to understand the upfront cost associated with a mortgage and to factor the monthly payments associated with it into your budget.

So how much will a $350K mortgage cost per month? This will vary based on factors such as interest rate, the terms of the loan, and more.

Total Cost of a $350K Mortgage

Monthly mortgage payments are a recurring expense homebuyers should include in their budget, but there are also some one-time and long-term costs they should keep in mind when determining how much home they can afford.

Upfront Costs

The largest upfront cost associated with a mortgage is likely the downpayment on the property. The median downpayment on a home is 13%, but if a buyer wants to avoid fees, including private mortgage insurance, they may have to put at least 20% down.

If a buyer puts 20% down and takes out a $350K mortgage, they’re likely putting down around $87,500.

On top of a down payment, buyers are expected to pay for some or all of the following before closing, including:

•   Abstract and recording fees: $200 to $1,200 and $125, on average, respectively

•   Application fees: up to $500

•   Appraisal fees: $300 to $400

•   Attorney fees: $150 to $400/hour

•   Home inspection fee: $300 to $500, on average

•   Title search and title insurance fees: $75 to $200

These may all be non-negotiable costs, but it’s also worth keeping in mind your wants for a new home, including furnishings and the cost for professional movers.


💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you from start to finish.

Long-Term Costs

Payments on a $350K mortgage are due every month, but there are also long-term costs on the horizon for homeowners. It’s important to factor in the costs of maintenance and repair to a property over time.

In general, it’s good to follow the 1% savings rule. That means a homeowner should aim to set aside 1% of the home’s purchase price annually and earmark it for repairs or maintenance.

Saving this upfront can keep homeowners from dipping into emergency funds for repairing the HVAC or fixing a leaky roof.

Recommended: First-Time Homebuyer Guide

Estimated Monthly Payments on a $350K Mortgage

The cost of monthly payments on a $350K mortgage will come down to a few factors:

•   Downpayment: How much the buyer puts down initially

•   Loan term: Including the length of the loan (15- vs. 30-year) and the structure of the payoff schedule (fixed-rate or adjustable-rate mortgage)

•   APR: The annual percentage rate of the mortgage

Monthly Payment Breakdown by APR and Term

The APR a homebuyer gets when applying for a $350K mortgage will vary based on market rates as well as the borrower’s financial history.

APR and the mortgage term will impact the total mortgage paid each month. As you can see, the monthly payments for a 15-year loan can be much higher than the payments for a 30-year loan. Remember, though, that over its lifetime, the 30-year mortgage is typically more costly because interest costs are higher.

Interest rate	15-year term	30-year term
3%	$2,417	$1,475
3.5%	$2,502	$1,571
4%	$2,588	$1,670
4.5%	$2,677	$1,773
5%	$2,767	$1,878
5.5%	$2,860	$1,987
6%	$2,953	$2,098
6.5%	$3,049	$2,212
7%	$3,146	$2,329

Keep in mind these estimates do not include insurance or property tax estimates, which may be rolled into monthly payments.

Consider using a mortgage calculator to determine monthly mortgage estimates based on APR and loan terms.

Recommended: The Cost of Living by State

How Much Interest Is Accrued on a $350K Mortgage?

The total interest a homeowner will accrue on a $350K mortgage depends on the interest rate and loan length. An owner will pay more in interest the higher the rate and the longer the loan length.

On a $350K mortgage at 4.5% interest and 30-year loan term, you would accrue around $288,423.49 in interest over the life of the loan. Borrow the same amount at the same rate for a 15-year loan term, and you would accrue $131,945.77 in interest.


💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.

$350K Mortgage Amortization Breakdown

Another helpful way to contextualize monthly payments on a $350K mortgage is through an amortization schedule, which breaks down payments by interest and principal.

For example, if a buyer secures a $350K mortgage with a 4.5% APR over a 15-year loan, their monthly payment will be roughly $2,677. With a longer loan term, an owner has lower monthly payments. However, it takes longer for a homeowner to pay down the principal, and over the life of the loan, the borrower with a 30-year term will pay more interest. Here’s an amortization scenario for a $350K mortgage with a 4.5% APR and a 30-year loan term, showing how the payment breaks down between interest and principal each year:

Year	Beginning balance	Interest paid	Principal paid	Ending balance
1	$350,000.00	$15,634.49	$5,646.31	$344,353.71
2	$344,353.71	$15,375.09	$5,905.71	$338,448.02
3	$338,448.02	$15,103.79	$6,177.01	$332,271.03
4	$332,271.03	$14,820.03	$6,460.77	$325,810.28
5	$325,810.28	$14,523.21	$6,757.59	$319,052.71
6	$319,052.71	$14,212.76	$7,068.04	$311,984.70
7	$311,984.70	$13,888.08	$7,392.72	$304,591.99
8	$304,591.99	$13,548.45	$7,732.35	$296,859.66
9	$296,859.66	$13,193.25	$8,087.55	$288,772.11
10	$288,772.11	$12,821.70	$8,459.10	$280,313.02
11	$280,313.02	$12,433.09	$8,847.71	$271,465.32
12	$271,465.32	$12,026.59	$9,254.21	$262,211.16
13	$262,211.16	$11,601.49	$9,679.31	$252,531.86
14	$252,531.86	$11,156.82	$10,123.98	$242,407.90
15	$242,407.90	$10,691.73	$10,589.07	$231,818.84
16	$231,818.84	$10,205.27	$11,075.53	$220,743.33
17	$220,743.33	$9,696.44	$11,584.36	$209,159.00
18	$209,159.00	$9,164.27	$12,116.53	$197,042.50
19	$197,042.50	$8,607.65	$12,673.15	$184,369.37
20	$184,369.37	$8,025.45	$13,255.35	$171,114.03
21	$171,114.03	$7,416.49	$13,864.31	$157,249.75
22	$157,249.75	$6,779.57	$14,501.23	$142,748.54
23	$142,748.54	$6,113.40	$15,167.40	$127,581.15
24	$127,581.15	$5,416.62	$15,864.18	$111,716.98
25	$111,716.98	$4,687.81	$16,592.99	$95,124.00
26	$95,124.00	$3,925.53	$17,355.27	$77,768.75
27	$77,768.75	$3,128.24	$18,152.56	$59,616.20
28	$59,616.20	$2,294.31	$18,986.49	$40,629.73
29	$40,629.73	$1,422.08	$19,858.72	$20,771.02
30	$20,771.02	$509.77	$20,771.03	$0.00

These monthly payments do not take into account additional costs, like taxes and insurance, that may be bundled into the monthly payment.

What Is Required to Get a $350K Mortgage?

The mortgage process can be confusing, but here are a few requirements to expect during the process:

•   Your credit score will impact your APR. Borrowers need a score of at least 500 for some mortgages, but most lenders require a score of 620 or more

•   Prequalification can be an important tool in the buying process. You will provide some basic information and the lender will do a soft credit inquiry. You’ll emerge with a sense of what rate the lender might offer.

•   Once you know how much money you need to borrow, getting preapproved for a mortgage is an important step. You’ll fill out a mortgage application and provide documents, such as proof of income, tax returns, and bank account statements. If you’re preapproved, you’ll receive a letter granting conditional approval to borrow the amount within a certain window, typically 60 to 90 days. SoFi’s Home Loan Help Center offers more information on this process.

The Takeaway

A home is a serious purchase, and creating a budget beforehand is important. Understanding monthly payments on a $350K mortgage could help you determine if you can afford the home in the long run and help you budget for future expenses.

Factors like the loan length and APR will impact the monthly mortgage payment, and it’s worth considering different types of loans to determine which is the best fit for your finances.

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.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What’s the monthly payment on a $350,000 mortgage?

The monthly payment on a $350K mortgage could range from $1,500 to $3,200, depending on the loan’s interest rate and term. And that’s not including some fees that may be incorporated in the loan payment, such as insurance payments.

How much down payment do I need for $350,000 mortgage?

To make a 20% down payment on a property with a $350,000 mortgage, you would need $87,500. Many buyers make lower down payments, however. Some as low as 3%.

Can I afford a $350,000 mortgage on a $95,000 salary?

It would be difficult to cover the monthly payments for a $350,000 mortgage on a $95,000 salary — you would be better off borrowing less. Use an online mortgage calculator to zero in on the amount you can truly afford to comfortably borrow.

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Photo credit: iStock/Joe Hendrickson

*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.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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.

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