How Much Will a $400K Mortgage Cost Per Month?

By Bob Haegele · August 31, 2023 · 8 minute read

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How Much Will a $400K Mortgage Cost Per Month?

For most Americans, mortgages are a necessary part of life. Without them, we couldn’t afford the homes where we start a life and perhaps a family. To pay for that cost, you likely need a mortgage.

However, the cost of a mortgage goes well beyond the amount of the loan. There are both upfront and ongoing costs that will be a factor in the cost of the mortgage. In this article, we will look closer at a $400,000 mortgage and what the monthly cost might look like.

Key Points

•   The monthly cost of a $400,000 mortgage depends on factors like interest rate, loan term, and down payment.

•   Using a mortgage calculator can help estimate monthly payments and determine affordability.

•   Factors like property taxes, homeowners insurance, and private mortgage insurance (PMI) can also affect the overall cost.

•   It’s important to consider your budget and financial goals when determining the affordability of a mortgage.

•   Working with a lender or mortgage professional can provide personalized guidance and help you understand the costs involved.

Total Cost of a $400K Mortgage

To determine the total cost of a $400,000 mortgage, we must consider more than just the $400K price tag. Upfront and ongoing costs are involved, which are factors in what you ultimately pay.

💡 Quick Tip: SoFi’s Lock and Look + feature allows you to lock in a low mortgage financing rate for up to 90 days while you search for the perfect place to call home.

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with as little as 3% down.

Upfront Costs

There are several upfront costs related to your mortgage. Common upfront costs include:

•   Closing costs: From mortgage origination fees and application fees to home inspection and appraisal, you must pay closing costs upfront. These are generally equal to 3% to 6% of the home principal amount.

•   Down payment: Different mortgage types have different down payment requirements. However, depending on the mortgage type, you might be able to put as little as 3% down. First-time homebuyers can sometimes put less down.

•   Property taxes: You may have to pay at least some money toward property taxes at the outset. For example, you might be required to pay six months’ property taxes.

Long-Term Costs

Long-term costs will likely be the largest cost associated with your home purchase. Here are some long-term costs to consider:

•   Mortgage payments: This is the monthly payment against the loan that financed the home purchase.

•   Home maintenance: Homeowners often do work on their homes, from the purely aesthetic to the absolutely necessary. However, these projects can be costly.

•   Property taxes: In most states, you must pay property taxes to your state or municipality. Property taxes can run into the thousands per year.

•   Homeowners insurance: Homeowners insurance isn’t a huge expense, relatively speaking. But the average cost of Progressive’s homeowners policy is between $83 and $138 per month.

Estimated Monthly Payments on a $400K Mortgage

The monthly payment on a $400K mortgage won’t always be the same. Certain factors like the down payment, annual percentage rate (APR), and term will affect how much you pay per month.

For instance, suppose you have a fixed 30-year $400K mortgage at 5% APR. In this case, your monthly payment would be $2,147. If you have a fixed 15-year $400K mortgage at 4.5% APR, your monthly cost would be $3,059. Keep in mind that these estimates don’t include escrow costs. There are also different types of mortgages, such as fixed and adjustable-rate. Your loan repayment may vary significantly depending on the type.

Monthly Payment Breakdown by APR and Term

Certain factors affect how much you pay per month on your mortgage. The biggest factors are typically your APR and mortgage term. Generally, a higher APR increases your monthly payment, as does a shorter repayment term. Use a mortgage calculator to estimate your monthly payment. Here are a few examples of how these calculations may vary depending on the APR and term:

Interest rate

15-year term

30-year term

3% $2,762 $1,686
3.5% $2,859 $1,796
4% $2,958 $1,909
4.5% $3,059 $2,026
5% $3,163 $2,147
5.5% $3,268 $2,271
6% $3,375 $2,398
6.5% $3,484 $2,528

How Much Interest Is Accrued on a $400K Mortgage?

As mentioned, the interest accrued on a $400,000 mortgage depends on several factors. However, the most important are the mortgage term and the APR. Generally, a shorter repayment term will result in higher monthly payments but less interest overall. For example, when comparing a 15-year vs. 30-year mortgage, we see that the 15-year mortgage results in less interest, despite higher monthly payments.

Fifteen-year mortgages often have lower APRs than 30-year mortgages as well. A lower APR also means you pay less interest. However, 15-year mortgages typically have much higher monthly payments than 30-year mortgages.

💡 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.

$400K Mortgage Amortization Breakdown

Once approved for a fixed-rate mortgage, you typically pay the same amount each month. However, most of the money you pay will go toward interest in the first few years. Eventually, you can expect to pay more toward the principal than interest. For instance, here is an example of a 30-year $400,000 mortgage with a 6% APR:


Beginning balance

Interest paid

Principal paid

Principal paid

1 $400,000.00 $23,866.38 $4,912.05 $395,087.95
2 $395,087.95 $23,563.41 $5,215.01 $389,872.94
3 $389,872.94 $23,241.76 $5,536.66 $384,336.28
4 $384,336.28 $22,900.27 $5,878.15 $378,458.13
5 $378,458.13 $22,537.72 $6,240.70 $372,217.43
6 $372,217.43 $22,152.81 $6,625.62 $365,591.81
7 $365,591.81 $21,744.16 $7,034.27 $358,557.54
8 $358,557.54 $21,310.30 $7,468.13 $351,089.42
9 $351,089.42 $20,849.68 $7,928.74 $343,160.67
10 $343,160.67 $20,360.65 $8,417.77 $334,742.90
11 $334,742.90 $19,841.46 $8,936.96 $325,805.94
12 $325,805.94 $19,290.25 $9,488.17 $316,317.76
13 $316,317.76 $18,705.04 $10,073.38 $306,244.38
14 $306,244.38 $18,083.74 $10,694.69 $295,549.69
15 $295,549.69 $17,424.11 $11,354.31 $284,195.38
16 $284,195.38 $16,723.80 $12,054.62 $272,140.76
17 $272,140.76 $15,980.30 $12,798.13 $259,342.63
18 $259,342.63 $15,190.94 $13,587.49 $245,755.14
19 $245,755.14 $14,352.89 $14,425.53 $231,329.61
20 $231,329.61 $13,463.16 $15,315.27 $216,014.34
21 $216,014.34 $12,518.55 $16,259.88 $199,754.47
22 $199,754.47 $11,515.67 $17,262.75 $182,491.71
23 $182,491.71 $10,450.94 $18,327.48 $164,164.23
24 $164,164.23 $9,320.54 $19,457.88 $144,706.35
25 $144,706.35 $8,120.42 $20,658.00 $124,048.35
26 $124,048.35 $6,846.28 $21,932.14 $102,116.21
27 $102,116.21 $5,493.56 $23,284.87 $78,831.34
28 $78,831.34 $4,057.40 $24,721.03 $54,110.31
29 $54,110.31 $2,532.66 $26,245.77 $27,864.55
30 $27,864.55 $913.88 $27,864.55 $0.00

What Is Required to Get a $400K Mortgage?

Getting a $400K mortgage usually requires sufficient income and a large enough down payment. The average down payment is 13%. If your income is on the low end, you might be able to make up for it with a larger down payment. Likewise, having a higher income may help if your down payment is small.

It may help to use a housing affordability calculator. This will give you a rough estimate of what you can afford based on your income, monthly expenses, and your down payment.

Your credit score can also be important when applying for a $400K mortgage. Credit scores help lenders determine how likely you are to repay your debts. Thus, a higher credit score can increase your approval odds. There is no definite rule, but a credit score of at least 620 can help when applying for a conventional loan. If you want to learn more about this process, there are mortgage resources that can help.

“If you have multiple debts, you want to make your minimum payments so you don’t hurt your credit score,” Kendall Meade, a Certified Financial Planner at SoFi said. “If you have cash left over after that, you should develop a strategy for which debts to pay off first,” she suggested.

How Much House Can You Afford Quiz

The Takeaway

Buying a home is the largest purchase most Americans make in their lifetime. Many costs come with buying a home, including upfront costs like a down payment and ongoing costs like monthly mortgage payments. Your mortgage payment is likely to be the largest monthly expense you have, and it can vary widely depending on the APR and mortgage term. On a $400,000 mortgage, the monthly payment could range from $1,600 to $2,600, as you can see above.

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.

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How much house can I afford on a $120,000 salary?

How much house you can afford depends on several factors, and salary is just one of them. You must also consider your mortgage interest rate, down payment, and other debts. If you have $40,000 for a down payment, spend $3,500 per month (not including rent), and your APR is 4.5%, you can afford a home up to about $400,000.

How do you calculate monthly mortgage payments?

To calculate monthly mortgage payments, you must know the loan amount, interest rate, and loan term. The easiest way to calculate your payment is to plug these numbers into an online mortgage calculator.

What is the average total monthly mortgage payment?

The national median monthly mortgage payment in the United States is $1,964 as of February 2023, according to the Mortgage Bankers Association.

Photo credit: iStock/MihailDechev

*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.

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