What’s the mortgage payment on a $200K loan?

Important Legal Disclosure:

Any figures, interest rates, loan examples, and market data referenced in this article are hypothetical or aggregated for educational purposes only. They arenot intended to reflect current pricing, available terms, or personalized loan options for any consumer. This content doesnot constitute an advertisement of credit terms, a solicitation or offer to extend credit, or a rate quote under federal or state lending laws. Actual mortgage rates and terms are determined by individual financial qualifications, property characteristics, market conditions, and other factors, and are subject to change without notice.

If you are seeking current, real-time mortgage rate information please refer to the official live rate information and product details published at RocketMortgage.com/rates, where current pricing and various loan terms are made available.

One of the most important things to consider when you’re buying a home is whether the price is affordable, but homes are priced in dollars rather than in monthly payments, so it can be hard to translate the price of a home into the amount you’d have to pay each month.

If you’re getting a $200,000 mortgage to purchase a home, you’ll want to know whether you can afford the payments. However, there are factors beyond the amount you’ve borrowed that influence the monthly payment of the loan.

About the monthly payments on a $200K mortgage

There is no single number that is the payment for all $200,000 mortgages. While the amount you borrow plays a big role in the monthly payment of your loan, there are many other factors that also influence the payment.

The four key portions of your mortgage payment are principal, interest, taxes, and insurance. All of those will vary based on multiple factors. We’ll focus on the things that influence your principal and interest payment because insurance and taxes vary significantly from region to region.

How term length affects a $200K mortgage payment

When you get a mortgage, you’ll choose a loan term, which is the length of time you’ll take to pay the loan off. Typical mortgage terms are 15 years and 30 years.

Because you’re still paying off the same principal amount regardless of term, the shorter-term loan will typically have a higher monthly payment.

Often, 15-year mortgages will have a lower interest rate than 30-year mortgages, meaning the difference between the payments may be smaller than expected.

If you’re considering differences in loan terms, you can use this amortization calculator from Rocket Mortgage® to see how term length can impact the estimated amount of interest you may pay and the estimated amount mortgage payment may be.

Over the life of a loan, the principal and interest payment won’t change, but the amount of that payment that goes toward principal or interest does change. This is called amortization.

Early in the loan’s life, most of your payment will go toward interest. However, as time passes and you pay down the loan’s principal, less interest will accrue each month. That means that more of your payment will go toward paying down the loan’s principal.

How interest rates affect a $200K mortgage payment

The interest rate of your mortgage also plays a big role in how much you pay each month. Each monthly payment covers all of the interest that accrued over the past month, plus a portion of the loan principal. The lower the interest rate, the less interest accrues, meaning a lower payment.

You can use this mortgage payment calculator from Rocket Mortgage® to calculate an estimated mortgage payment amount that you may pay at different interest rates.

Many factors influence your mortgage rate, including the interest rate market, your credit score, the amount you’re borrowing, your down payment, and the loan-to-value ratio of the loan.

Fixed-rate vs. adjustable-rate mortgages

Mortgages can have either fixed interest rates or adjustable interest rates.

With a fixed-rate loan, the interest rate stays the same throughout the life of the loan. The only way to change it is to refinance the mortgage. That means your principal and interest payment will stay the same during the entire period of the loan.

With an adjustable-rate mortgage, your loan’s rate stays the same for an initial introductory period, then it changes on a set schedule. For example, with a 5/1 ARM, your rate will stay the same for the first five years, then adjust once per year after that.

ARMs usually have lower initial interest rates, which can be appealing. However, the rate, and therefore payment, could rise in the future, which makes them risky. ARMs can be appealing for people who only plan to stay in the home for a short time or who can handle future volatility in their monthly payments.

Other costs to consider

The principal and interest payments on your $200,000 mortgage are just one piece of the puzzle when it comes to figuring out if the loan is affordable. You’ll have to consider other costs as well.

Down payment

Depending on the type of loan you’re getting, such as a conventional mortgage or FHA loan, you’ll need to put down a percentage of the home’s sale price as a down payment. Typical down payments range from 3% to 20% of the home’s value. So, if you want to buy a $250,000 home, you’d have to put down between $7,500 and $50,000 up front.

Some specialized loan types, like VA loans or USDA loans, have no down payment requirement but have specific qualification requirements.

Closing costs

When you close on your new home, you’ll also have to pay closing costs. These can include prepaid mortgage interest, appraisal fees, loan origination fees, underwriting costs, and more.

Typical closing costs are between 3% and 6% of the loan amount, so expect to pay $6,000 to $12,000 when getting a $200,000 loan.

Homeowners insurance

Homeowners' insurance protects you from damage to your home by things like natural disasters, as well as some other forms of liability related to homeownership. Lenders typically require that you carry homeowners insurance and often, but not always, make you pay for it through escrow.

That means that after you get the policy, your lender will divide the premium into monthly payments and collect the payments along with your monthly mortgage payments. The lender then pays the insurer on your behalf. This ensures that your home is insured, protecting both you and your lender’s investment.

Property taxes

Property taxes are taxes charged by local governments that help to finance services like trash and recycling pickup, fire departments, schools, local road maintenance, and the like.

The taxes you pay depend on factors like the value of your home, local tax rates, and exemptions your local government offers.

Usually, your mortgage lender will divide your annual property taxes across your monthly payments and collect the taxes along with your principal and interest payments. The lender then holds that money in escrow and pays the property taxes on your behalf.

Mortgage insurance

Depending on the type of mortgage you use and the amount of your down payment, you may have to pay for mortgage insurance (PMI). This insurance protects the lender in the event that you default on the loan.

Typically, you’ll pay for mortgage insurance if you make a down payment of less than 20%.

PMI increases the size of your monthly payments by adding an additional fee to each payment. Usually, PMI is between 0.2% and 2% of your loan amount each year, so you’ll pay between $400 and $4,000 annually.

PMI payments end when you reach 20% equity in the home, but you may need to reach out to your lender to ask them to cancel the payments. Other types of loans, such as FHA or USDA loans, have a similar type of insurance payment with different rules for when payments end.

How does a $200K mortgage compare to the national average?

Compared to the national average, a $200,000 mortgage is relatively small. The median home in the United States sold for $416,900 in the first quarter of 2025. To only borrow $200,000 to buy the median home, you’d need to put down a down payment of more than 50%.

Most people put down 20% or less, so the average mortgage and resulting average mortgage payment will be far higher than a $200,000 mortgage.

Where can I get a $200K mortgage?

Just because the median home is selling for more than $400,000 doesn’t mean that getting a $200,000 mortgage to buy a home is impossible. However, it does mean you may have to look inland from the coastal United States and stay away from major cities.

For example, West Virginia is one of the cheapest states in which you can buy a house. The median home is just over $225,000, which means that if you can come up with a $25,000 down payment, you can buy a home with a $200,000 mortgage.

How to get a $200K mortgage

If you’re ready to buy a home, you’ll need to apply for a mortgage that you can use to help pay for it. To get started, follow this mortgage application process.

1.  Figuring out your home budget. Think about how much you can afford for a monthly payment. Also consider costs such as maintenance and insurance, as they will impact your budget.

2.  Looking at mortgage requirements. Lenders will examine your credit history, income, and financial situation. Make sure you can meet the requirements to get a mortgage.

3.  Getting a preapproval. Submit a preapproval application with a few lenders. Each lender will examine your finances and give you a quote for how much you can borrow and the rate you’ll pay. You can use this pre-approval to show sellers that you have a good chance of qualifying for a loan.

4.  Comparing lenders and rates. Once you’ve received quotes, compare each offer. Look at the loan rate and other aspects of each loan to determine the monthly payment and decide which offer is best for you.

5.  Finding a home and making an offer. Now you can start shopping for homes. Work with a realtor who can help you find properties you’re interested in and assist you with making an offer to buy a home.

6.  Applying through the chosen lender. If your offer is accepted, you can apply for a loan with your chosen lender.

7.  Going through underwriting. Though your lender will have taken a preliminary look at your finances during the preapproval process, they’ll conduct the full underwriting process now. That means a deep dive into both your finances and the property to ensure you’re a good candidate for a loan.

8.  Completing the closing process. The last step is to close on the home. At closing, you’ll sign paperwork to confirm your mortgage and the purchase of the property.

FAQ

Buying a home is a big commitment, so it’s important to understand what you’re getting into when you get a mortgage for $200,000.

How much are the payments on a $200K mortgage?

There is no single payment for a $200,000 mortgage. It will depend on factors such as the interest rate of the loan, the loan’s terms, and local factors like property taxes and insurance.

For example, a 30-year loan for $200,000 at 7% interest would cost $1,330.60 per month for principal and interest. PMI and other costs could cause the payment to be higher.

How much income do I need for a $200K mortgage?

A common rule of thumb is to avoid spending more than 28% of your monthly income on housing. Assuming a monthly payment of $1,330.60, that means you’d want to make at least $4,752.14 a month or $57,025.68 per year.

Can I afford a $200K mortgage on $50K per year?

It’s possible to afford a $200,000 mortgage on $50,000 a year, but it may be a tight squeeze. Using the above example loan, your payments would be more than the 28% of your income that is recommended. However, if you drop the loan’s rate to 5%, you’d pay just $1,073.64 a month. Using the 28% of your income rule of thumb, you could afford that payment at an income of just over $46,000 per year, making it affordable if you make $50k a year.

You can use Rocket’s affordability calculator to get a sense of how much home you can afford.

What’s the down payment on a $200K home?

Down payments depend on the type of loan you’ve applied for but range from 3% to 20% of the home’s value. That means the down payment on a $200,000 home would range from $6,000 to $40,000.

Rocket’s down payment calculator can give you more information on down payments and how they impact your monthly payment.

How much are closing costs on a $200K loan?

Closing costs are usually between 3% and 6% of the loan amount, so expect to pay between $6,000 and $12,000 for closing costs on a $200,000 mortgage. You may be able to find a loan with no closing costs, but the costs will usually be baked into the loan somehow, such as in the form of a higher interest rate or loan amount.

The bottom line: Determine whether a $200K mortgage fits your budget

Buying a home is a big commitment, and even though a $200,000 loan is smaller than the typical loan, it still comes with a big monthly payment. Before buying a home, think carefully about whether a $200,000 loan is within your budget, and don’t forget to consider other costs like property taxes and insurance.

If you think you’re ready to buy a home, work with Rocket Mortgage^® to get pre-approved.