How much is a mortgage on a $300K house?

If you're figuring out whether you can afford to buy a home, one of the most important factors is how much the mortgage payment will be. To buy a home with a mortgage on a $300k house, the answer will depend on several factors, including your down payment, the mortgage interest rate, the property tax rate in your area, and the cost of homeowners insurance.

Understanding all the costs associated with your mortgage payment can help you plan for the future and ensure you can afford to buy a $300,000 home.

What’s included in a monthly mortgage payment

Your mortgage payment can consist of a number of different costs, including:

• How much you need to borrow
• The interest rate on your loan
• Whether you're paying mortgage insurance
• Property taxes in your location
• The cost of homeowners insurance

Most homeowners pay their property taxes and homeowners insurance premiums with an escrow account, which will increase the monthly payment. If you don't have an escrow account, you'll need to pay those bills separately.

All of these costs are influenced by the property you're buying and the mortgage you're applying for. For example, you'll have to pay more principal each month the more you borrow, so buying a more expensive home or making a smaller down payment will increase the monthly payment. A higher interest rate also will increase your monthly payment.

Principal and interest

One of the primary components of your mortgage payment is the principal and interest portion.

Each month, interest accrues on your loan based on the loan's balance and your mortgage interest rate. Your monthly payment is calculated through a process called amortization to cover all the interest that has accrued since your last payment, plus enough of the principal to ensure your loan is paid off on schedule.

When you start making payments on your mortgage, most of what you pay will go toward interest. Each month, a little less will go to interest and more to the principal. By the time you make the final payments on your loan, most of your payment will go toward the principal.

Property taxes

Property taxes are levied by state and local governments to pay for services such as schools, parks, road maintenance, law enforcement, trash collection, and firefighting. The amount you pay will depend on the property tax rate in your area and the value of your home.

Many homeowners pay a monthly fee added to their mortgage payment into an escrow account to ensure sufficient funds to pay these taxes.

You can see how much you’ll have to pay in property tax if you buy a home by checking your local assessor’s website.

Homeowners insurance

Homeowners insurance reimburses you for damage to your home or liability claims that occur on your property. For example, your policy will help pay for repairs to your home if a tree falls and damages the roof, or cover medical bills if someone is injured on your property.

While lenders usually require homeowners insurance, they leave the choice of insurer to the borrower. That means you can shop around to find the best deal from an insurance company you trust. Lenders also usually set minimum coverage requirements that your policy must meet.

Lenders may require that you make a monthly payment into an escrow account to ensure sufficient funds to pay your homeowners' insurance premiums.

Typically, you'll need to buy a policy before you can close on the home. The cost will vary based on the home's value and perceived risk to your property, so homes in areas with a high incidence of natural disasters or high crime rates may cost more to insure.

Mortgage insurance

Mortgage insurance protects lenders against financial loss if you default on your loan.

There are two main types of mortgage insurance: private mortgage insurance (PMI), which applies to conventional loans, and mortgage insurance premiums (MIP), which applies to FHA loans.

Lenders typically charge PMI when you make a down payment of less than 20% on a conventional loan. You can cancel PMI once you have 20% equity in your home.

All FHA loans require MIP. You'll pay an up-front MIP at closing, and then an annual MIP that's broken down into monthly payments and added to your mortgage payment. You pay the annual MIP for 11 years or the life of the loan, depending on the amount of your down payment.

The amount you pay for mortgage insurance depends on your credit profile, the amount you borrow, and the term of the loan. With a $300,000 mortgage, you’ll pay a $5,250 up-front MIP and between $450 and $2,250 a year. With PMI, you’ll pay between $600 and $6,000 a year.

Breaking down the numbers for a $300K house

In general, principal and interest are the primary components of your mortgage payment, with property tax and insurance comprising a smaller portion. If your home is part of a homeowners association, you also will need to pay HOA fees.

It's also easier to estimate principal and interest payments before buying a home because things like property taxes and insurance premiums are specific to the home you buy.

To buy a $437,500 home with 20% down and 5.625% interest (6.086% APR)², you can expect to pay about $2,883.07 a month for a 15-year fixed-rate loan. The interest rate will be lower based on the shorter payoff time frame, but a higher payment. That’s $2,183.55 a month with a 30-year fixed-rate loan at 6.375% (6.663% APR)² before accounting for taxes, insurance, or other costs.

Note that the payment is much higher for a 15-year loan because the loan amortizes much more quickly. Amortization is the process through which your payments reduce your loan’s balance, eventually paying it off.

Amortization schedule for buying a $300K home

When comparing mortgages, consider looking at their amortization schedules. This will show how much of each payment goes toward principal and interest, the balance of your loan after each payment, and the total amount you will pay before the loan is paid off.

Because 15-year mortgages last half the time of a 30-year loan, they amortize more quickly. These sample amortization schedules assume a 5% down payment on our $437,500 home.

You can use the amortization calculator from Rocket Mortgage® to view see amortization schedules tailored to your specific situation.

Eligibility requirements for buying a $300K home

As with any loan, qualifying for a mortgage to buy a $300,000 home is all about showing the lender that you will pay the loan back. Your lender will examine several factors, including:

• Your credit report
• Income
• Debt-to-income ratio
• Employment history

Keep in mind that different loan types and different lenders will have different requirements.

FAQ

Many factors influence the amount you must pay for your mortgage, so make sure you understand all of them to make sure you can afford the home you want to buy.

How much income do I need to buy a $300,000 home?

A popular rule of thumb states that you should only get a mortgage that is between two and three times your household income. That means the income needed to afford at $300,000 home is between $100,000 and $150,000 a year.

You can use a home affordability calculator to get a sense for how much home you can afford based on your specific situation.

What would my down payment be for a $300,000 mortgage?

The size of the down payment required to buy a home depends on your credit and the type of mortgage you choose. A 20% down payment on a $300,000 home would be $60,000. FHA loans allow down payments as low as 3.5%, so you could buy a $300,000 home while only putting down $10,500.

What credit score is required for a $300,000 mortgage?

The credit score required to obtain a $300,000 loan will depend on the type of loan you choose and the lender you select. FHA loans require a minimum credit score of 500, though a score of 580 or higher offers better terms.⁴ VA loans, USDA loans, and conforming conventional loans have no specific credit score requirements, but lenders may set their own requirements.⁵ Rocket Mortgage^® doesn’t currently offer USDA loans.

Even if your loan has no credit score requirement, your credit history still will be reviewed and considered in the lender's decision.

The bottom line: How much does it cost to buy a $300k house

Your mortgage payment is affected by more than just your loan’s balance and interest rate. You also need to account for costs such as insurance and property taxes. Planning ahead for these costs can help guide your search for a home and help you avoid buying a property that will ultimately be unaffordable.

If you’re ready to buy a home, explore your borrowing options with Rocket Mortgage today.

¹ Rocket Mortgage is not acting on behalf of FHA or HUD.

² An interest rate of 5.625% (6.086% APR) is for the cost of 2.00 point(s) ($7,000.00) paid at closing. On a $350,000 mortgage, you would make monthly payments of $2,883.07. Monthly payment does not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 80.00%.

³ An interest rate of 6.375% (6.663% APR) is for the cost of 2.00 point(s) ($7,000.00) paid at closing. On a $350,000 mortgage, you would make monthly payments of $2,183.55. Monthly payment does not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 80.00%. Rate valid as of December 5, 2025.

⁴ To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

⁵ Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.