Multiracial couple holding keys and standing outside their new home

What To Know About The Mortgage Payment On A $200K Loan

April 19, 2024 7-minute read

Author: Victoria Araj


Going into the home buying process armed with information is critical to your success. One factor that’s especially important to be aware of beforehand is approximately how much money you’ll need to budget for your monthly mortgage payment. Of course, this exact number depends on numerous factors, so it may be helpful to start with a ballpark mortgage amount and go from there. For example, if you expect to get a mortgage somewhere in the general range of $200,000, playing around with that number can give you a better idea of whether your goal of homeownership is affordable.

Let’s take a closer look at what a typical mortgage payment on a $200K home loan might be, what factors can affect your monthly payment amount and how to go about getting a $200K mortgage.

About The Mortgage Payment On A $200K Home Loan

It’s impossible to give a hard and fast answer as to how much the monthly payment on a $200K mortgage would be because there are so many individual factors that can impact the total amount. Your mortgage payment includes four components: principal, interest, taxes and insurance (also known as PITI). In particular, taxes and insurance vary widely based on location and other factors, so for simplicity we’ll be focusing only on principal and interest for the purpose of our calculations. There are two driving factors that determine how much mortgage principal and interest you pay each month: loan term length and interest rate.

Term Length And A $200K Mortgage

Your loan term is the amount of time it will take you to pay back your mortgage loan in full. A shorter loan term means you’re paying more toward your principal balance each month because you have fewer payments to repay the full loan amount. Let’s look at an example of how your loan term affects your mortgage payment. At a 7% interest rate, a 30-year fixed $200K mortgage has a monthly payment amount of $1,331, while a 15-year fixed $200K mortgage at the same interest rate has a monthly payment amount of $1,798.

It’s important to note that your loan term can also influence your mortgage rate, which we’ll cover in more detail in the next section. Shorter loan terms typically come with lower interest rates. This means you can save money on interest over the life of the loan, not only because the loan will be paid off more quickly, but because your interest rate itself could also be lower.

Interest Rate And A $200K Mortgage

The other major factor that influences your monthly mortgage payment on a $200K loan is your interest rate. We already mentioned that the length of your loan can impact your interest rate, but other factors like your credit score, loan-to-value ratio and down payment amount also come into play.

A higher interest rate means a higher monthly payment. For example, a 30-year $200K mortgage with a 7% fixed interest rate would have a monthly payment of $1,331, while the same 30-year $200K mortgage at a fixed interest rate of 7.5% would have a monthly payment of $1,398.

Fixed-Rate Vs. Adjustable Rate Mortgages

It’s worth nothing that your interest rate on a $200K mortgage can either be fixed or adjustable. With a fixed-rate mortgage, you’ll have the same interest rate for the life of the loan. If you choose an adjustable-rate mortgage, your interest rate will go up or down, depending on the market, after a predetermined introductory period.

Other Costs Involved With A $200K Mortgage

When you take out a $200,000 mortgage, your principal and interest aren’t the only costs you'll need to account for. You’ll also need to factor in some money upfront, as well as additional money each month to cover other recurring expenses that may be rolled into your mortgage payment. Some of the additional costs to keep in mind as you take out a $200K mortgage: 

  • Down payment: The amount you’ll need to have for a down payment varies based on your loan type and whether you’re a first-time home buyer. Certain programs will let you put down 3%, which is $6,000 on a $200K home, while others may prefer to put down the full 20%, which is $40,000 on a $200K home.
  • Closing costs: Home buyers should also have enough cash saved up to cover their closing costs, which range from 3% – 6% of the loan amount. This means for a $200,000 mortgage, closing costs can range from $6,000 – $12,000.
  • Homeowners insurance: Many lenders will divide your homeowners insurance premium by 12 and add that to your monthly mortgage payments. They’ll then hold that money in an escrow account and pay the insurance company on your behalf each year.
  • Property taxes: Just like your insurance, you may also pay into an escrow account monthly to cover your property taxes. This is a great way to ensure your property taxes are paid each year rather than having to remember to save for and pay them on your own.

See What You Qualify For


Type of Loan

Home Description

Property Use

Your Credit Profile

When do you plan to purchase your home?

Do you have a second mortgage?

Are you a first time homebuyer?

Your email address () will be your Username.
Contains 1 Uppercase Letter
Contains 1 Lowercase Letter
Contains 1 Number
At Least 8 Characters Long
Go Back


By submitting your contact information you agree to our Terms of Use and our Privacy Policy, which includes using arbitration to resolve claims related to the Telephone Consumer Protection Act.!

NMLS #3030
Rocket Mortgage Logo

Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.

If a sign-in page does not automatically pop up in a new tab, click here

Rocket Mortgage Logo

Sample Monthly Payments On A $200K Mortgage

We’ve crunched the numbers to help you get an idea of how much the mortgage payment on a $200,000 loan would be at various interest rates and term lengths. Keep in mind that the chart below only accounts for the principal and interest on the loan. Other monthly costs like homeowners insurance and property taxes aren’t accounted for.


10-Year Mortgage Monthly Payment

15-Year Mortgage Monthly Payment

20-Year Mortgage Monthly Payment

30-Year Mortgage Monthly Payment

6% Interest Rate





7% Interest Rate





8% Interest Rate





$200,000 Mortgage Amortization Schedule

Curious how your mortgage payment on a $200K loan will break down into principal and interest each year? Check out our sample amortization schedule below. For this example, we used a 30-year fixed-rate mortgage at a 7% interest rate.


Interest Paid

Principal Paid

Ending Loan Balance

























































































































To see the amortization schedule for other term lengths and interest rates, use this amortization calculator.

How Does A $200K Mortgage Compare To The National Average?

A $200,000 home loan is on the lower end of the mortgage spectrum as of late. Though housing prices have decreased slightly since 2022, the average home price in the U.S. is $513,400 as of Q3 of 2023. This means that even in the instance of a 20% down payment, many mortgages in the U.S. are over $200K.

Where Can I Get A $200K Mortgage?

Though home prices are well over $200,000 in many parts of the country, there are still some areas where a $200K mortgage is the norm. For example, in Rochester, New York, the average price of a 3-bedroom home in 2023 was $199.9K. Our list of the cheapest states to buy a house in 2024 also lists several states where the median home price is $200K or less.  

How To Get A $200K Mortgage

To get a $200K mortgage, you’ll first need to understand the requirements for your credit score, debt-to-income ratio and income. These will likely vary slightly by lender. And speaking of lenders, be sure to shop around for your initial mortgage approval to find the lender that offers you the best terms and conditions.

Once you have your mortgage preapproval, you can begin house hunting until you find a home you’d like to purchase. A real estate agent can help you find properties that meet your needs and are within your budget. Once you find the right one, you can submit an offer.

After your offer is accepted, you’ll have the opportunity to get a home inspection so that you’re fully aware of the property’s condition before you buy it. You’ll also need a home appraisal and to go through underwriting so your lender can verify your finances.

After all that is complete, you’ll be able to close on your mortgage and move into your new home.

FAQs About $200K Mortgages

For more information about $200K mortgages, check out the answers to some frequently asked questions below.

How much income do I need for a $200,000 mortgage?

If you were to follow the 28% rule, you should spend no more than 28% of your gross monthly income on housing costs. The exact amount you’ll need to make to afford this varies based on your loan’s term and interest rate. Just be sure to do the math beforehand to avoid becoming house poor.

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

The exact amount you’ll pay monthly on a $200K mortgage depends on your interest rate and term length. For example, on a 30-year mortgage at 7% interest, your monthly principal and interest payments come out to $1,331.

The Bottom Line

A $200K mortgage is significantly below the average home sales price, but that doesn’t mean a $200K mortgage isn’t possible. For home loans of this amount, the monthly payment amount will depend on the loan term length and the particular interest rate the borrower receives. In addition to principal and interest, be sure to factor in the cost of homeowners insurance and property taxes. And if you’re planning on taking out a $200K mortgage, you’ll also need cash to fund your down payment and closing costs.

Ready to buy a home? Get started today by applying for your initial mortgage approval online.

Get approved to see what you can afford.

Rocket Mortgage® lets you do it all online.

Victoria Araj

Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.