Your Guide To A $450,000 Mortgage: Costs And Requirements To Consider
Author:
Sarah SharkeyMay 1, 2024
•7-minute read
When buying a house, getting a home loan is a concern for most buyers. If you’re considering taking on a $450,000 mortgage, it’s important to understand how factors like loan terms and interest rates impact your homeownership costs.
What Is The Monthly Payment On A $450,000 Mortgage?
If you want to purchase a home with a $450,000 mortgage, the monthly payment can vary dramatically based on the loan term you choose and the attached interest rate.
The table below breaks down how much you can expect to pay each month on a $450,000 home loan. The monthly payment indicated includes the principal and interest component of your payment. But it doesn’t include any property taxes, mortgage insurance or homeowners insurance, which can vary based on your location and down payment amount.
| Interest Rate | Average Monthly Payment (30-Year Mortgage) | Average Monthly Payment (15-Year Mortgage) |
|---|---|---|
|
5% |
$2,415.70 |
$3,558.57 |
|
5.5% |
$2,555.05 |
$3,676.88 |
|
6% |
$2,697.98 |
$3,797.36 |
|
6.5% |
$2,844.31 |
$3,919.98 |
|
7% |
$2,993.86 |
$4,044.73 |
|
7.5% |
$3,146.47 |
$4,171.56 |
|
8% |
$3,301.94 |
$4,300.43 |
|
8.5% |
$3,460.11 |
$4,431.33 |
What Is The Total Interest Paid On A $450,000 Mortgage?
The total amount of interest paid on a mortgage will vary based on the interest rate and the loan term. You’ll need to plug your numbers into an amortization schedule to map out exactly how much you’ll pay in interest over the course of the loan term. But in general, a shorter loan term leads to paying less in interest.
For example, let’s say Pat is taking out a $450,000 home loan with a 6.5% interest rate 30-year loan term. Without making any extra payments, they will pay $573,950.20 in interest over the loan term. But if they opt for a 15-year loan term, with the same interest rate and loan amount, they would pay $255,596.97 in interest over the loan term.
Amortization Schedule With A $450,000 Home Loan
An amortization schedule details how much of your monthly payment will go toward principal and interest over your loan term. As your loan ages, the amount of money put toward interest charges decreases, and the amount paid toward the loan balance increases.
The following tables show two different amortization schedules (30-year mortgage and 15-year mortgage) to illustrate how the payments work out.
Amortization Schedule For A 30-Year Loan Term
Here’s the breakdown of how payments stack up over a 30-year loan term for a $450,000 home loan with a 6.5% interest rate.
| Year | Starting Balance | Estimated Monthly Payment | Interest Paid | Principal Paid | Remaining Balance |
|---|---|---|---|---|---|
|
1 |
$450,000 |
$2,844.31 |
$29,101.91 |
$5,029.76 |
$444,970.24 |
|
2 |
$444,970.24 |
$2,844.31 |
$28,765.06 |
$5,366.62 |
$439,603.62 |
|
3 |
$439,603.62 |
$2,844.31 |
$28,405.64 |
$5,726.03 |
$433,877.59 |
|
4 |
$433,877.59 |
$2,844.31 |
$28,022.16 |
$6,109.51 |
$427,768.08 |
|
5 |
$427,768.08 |
$2,844.31 |
$27,613.00 |
$6,518.68 |
$421,249.40 |
|
6 |
$421,249.40 |
$2,844.31 |
$27,176.43 |
$6,955.25 |
$414,294.15 |
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