Mortgage on a $300,000 House
Put 20% down on a $300,000 home with a 30-year fixed mortgage at 6.8%, and the monthly payment lands around $1,565/month. Here is the full breakdown.
Total cost over 30 years
| Item | Amount |
|---|---|
| Total payments (30 years) | $375,509 |
| Principal (loan amount) | $160,000.0 |
| Total interest paid | $215,509 |
| Down payment | $60,000 |
| Total cost of home | $415,509 |
Down payment scenarios
| Down Payment | Amount | Loan Amount | Monthly Payment |
|---|---|---|---|
| 5% | $10,000 | $190,000 | $1,239 |
| 10% | $30,000 | $180,000 | $1,173 |
| 20% | $60,000 | $160,000.0 | $1,565 |
| 25% | $50,000 | $150,000 | $978 |
What income do you need?
At $1,565/month, you need at least $5,588/month gross income ($67,050/year) under the 28% rule. Many dual-income households earning $70k–$90k combined can comfortably qualify for a $300k mortgage, especially with limited other debt.$5,588/month ($67,050/year).
A 36% total debt rule is what some lenders apply instead. Car loans, student loans, and credit card minimums all raise the income needed to qualify. Our home affordability calculator can give you a personalized number.
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What a $300,000 Mortgage Actually Costs Per Month
The $300,000 price on the listing isn't what shows up in your monthly budget. Your real payment stacks principal and interest with property tax, homeowners insurance, and — under 20% down — PMI on top. Skip that math up front and the actual bill can come as a genuine surprise.
Run the numbers at 6.75% on a 30-year term with $60,000 down (20%) on a $240,000 loan, and principal and interest comes out to $1,557/month. Fold in typical tax and insurance and full PITI lands near $2,007/month — county tax rates are the main variable there.
Monthly Payment Breakdown
| Component | 20% Down ($60,000) | 10% Down + PMI |
|---|---|---|
| Principal & Interest | $1,557/mo | $1,751/mo |
| Property Tax (est. 1.2% rate) | $300/mo | $300/mo |
| Homeowners Insurance | $150/mo | $150/mo |
| PMI (est. 0.85%) | — | $191/mo |
| Total PITI | $2,007/mo | $2,371/mo |
Every number above is a placeholder until you know your county. Annual property tax runs under 0.5% of home value in Hawaii or Alabama but tops 2% in New Jersey, Illinois, and Texas — the assessor's millage rate, not this page, sets your actual bill.
Income Required for a $300,000 Home
The standard PITI-to-income guideline caps housing at 28%–36% of gross monthly pay. For this $300,000 home at 20% down, that works out to roughly $6,272–$7,168/year in required income. Put down only 10% and add PMI, and the floor climbs to $7,409–$8,468/year.
PITI isn't the only ratio in play — total debt-to-income, covering every obligation you have, usually tops out at 43%–45%. Carry a car note or student loan payment and the mortgage a lender will sign off on shrinks accordingly, even at the same income.
Total Interest Over 30 Years
Interest on a $240,000 loan at 6.75% adds up to roughly $320,389 over 30 years, which puts the real cost of this home — down payment plus every payment made — around $620,389. It's why an extra $300/month toward principal is worth considering: it can trim 4–5 years off the loan and cut tens of thousands from that interest total.
15-Year vs. 30-Year Mortgage
Go with a 15-year term instead (typically 6.0%–6.25% at this loan size) and the monthly P&I climbs to about $2,091 — noticeably more than the 30-year figure of $1,557. In exchange, total interest drops from around $320,389 to about $136,328, a $184,061 gap. The right call comes down to whether your monthly budget can stretch that far.
Down Payment Options
| Down Payment | Loan Amount | PMI Required | Monthly P&I (est.) |
|---|---|---|---|
| 3.5% FHA ($10,500) | $289,500 | Yes (MIP) | $1,878 |
| 5% ($15,000) | $285,000 | Yes | $1,849 |
| 10% ($30,000) | $270,000 | Yes | $1,751 |
| 20% ($60,000) | $240,000 | No | $1,557 |
Closing Costs on a $300,000 Home
Closing costs run separately from the down payment — figure 2%–4% of purchase price, or $6,000–$12,000. Add that to a 20% down payment and you're looking at roughly $66,000–$72,000 in total cash needed at the table, so it's worth lining up well before you make an offer.
Common Mistakes
Qualifying for maximum vs. buying at maximum
Approval and affordability are two different questions. A lender clears you for $300,000 by running your gross income against debt ratios; your actual life runs on net income after everything else is paid. Check the PITI figure against your real take-home before deciding the payment is comfortable.
Ignoring property tax variation
Two identical $300,000 homes can have a $440/month gap in property tax alone depending on state — New Jersey's ~2.2% effective rate versus Hawaii's ~0.28%. Don't lean on the estimates here; pull the actual rate for the county you're targeting.
Tips and Best Practices
- Get multiple loan quotes — rate differences of 0.25%–0.5% on a $300,000 loan can translate to $40–$80/month and $15,000–$30,000 over 30 years.
- Model rate scenarios — at 7.5% instead of 6.75%, your monthly P&I on this home increases by approximately $121/month. Know your payment at different rate levels before committing.
- Build in a maintenance budget — beyond PITI, plan for 1%–1.5% of home value annually in maintenance. On a $300,000 home: $3,000–$4,500/year, or $250–$375/month set aside for repairs.
Related Calculators
- Mortgage Calculator — custom rate, term, and down payment scenarios.
- Home Affordability Calculator — what price range your income supports.
- Closing Costs Calculator — estimate total cash needed at closing.
- Refinance Calculator — when to refinance if rates change after purchase.
- Property Tax Calculator — look up rates for your specific county.
Frequently Asked Questions
What income do I need to afford a $300,000 home?
Carrying $2,007/month in PITI at 20% down and 6.75% translates to needing roughly $75,262–$86,014/year in gross income under the standard 28%–32% guideline. That's a clean-slate number — an existing student loan or car payment eats into how much of that income is actually available for housing.
How much do I need saved before buying a $300,000 home?
The FHA route needs the least upfront cash: 3.5% down ($10,500), plus 2%–4% closing costs ($6,000–$12,000), plus 3–6 months of reserves, landing around $25,521–$31,542 total. Going conventional with 20% down instead pushes that all-in cash figure up to $75,021–$81,042.
Is $300,000 a lot for a house?
Whether $300,000 is a lot of house depends entirely on the zip code — it sits below the roughly $420,000 US median (2024), but that's a national number. It might buy a studio in San Francisco or a 4-bedroom home in much of the Midwest; local market conditions matter far more than the median.
What credit score do I need for a $300,000 mortgage?
620 clears most conventional loans; FHA opens the door as low as 580 with 3.5% down. But the best pricing sits well above that floor — a 720+ score is generally the entry point for a genuinely competitive rate, and 760+ unlocks the top tier, which matters since 6.5% versus 7.25% here is an $80/month difference.
How long does it take to pay off a $300,000 mortgage?
Loans typically come in 30- or 15-year flavors, but there's a middle path: adding just one extra payment a year on a 30-year loan shortens it to about 26 years. Setting up biweekly payments (13 full payments a year instead of 12) achieves nearly the same result without any extra effort on your part.
Key Takeaways
A $300,000 purchase asks for more than the down payment: closing cash on top of it, income that clears the full PITI test (not just P&I), and a reserve for the maintenance bills that inevitably show up. Adjust the rate and down payment in the calculator above for your exact scenario, then measure the result against your actual monthly budget — not just what a lender's debt-to-income math will approve.