What's the mortgage payment on a $400K loan?

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The median sales price of a U.S. home stood at $428,275 in December 2025, according to Redfin. With a median price that high, it’s not unusual to need a $400,000 mortgage loan to finance the purchase of a home. What monthly payment can you expect from such a loan? That depends on several factors, including the size of your down payment, your loan's interest rate, and the length of your mortgage.

Here's a closer look at the mortgage payment you can expect to pay each month with a $400,000 home loan, and some ways you can reduce that payment.

About the monthly payments on a $400K mortgage

When you pay your mortgage, your lender will split your payment into four parts. Some of your dollars will go toward paying down your loan’s principal balance, while others will cover interest. Parts of your payment will also cover your property taxes and homeowners insurance payments. This is known as PITI: principal, interest, taxes, and insurance.

Here we’ll focus on those portions of your monthly payment that go toward your principal balance and interest. These will vary depending on your loan’s term and interest rate. The lower your rate and term, the lower your principal and interest payments will be.

How term length impacts a $400K mortgage

The shorter your mortgage term, the higher your monthly payment will be. That’s because you’re repaying your loan over fewer months. You’ll need to pay more each month to pay off your loan’s principal balance by the time its term ends.

Say you take out a $400,000 mortgage at a fixed interest rate of 7%. If your loan's term is 30 years, your monthly payment will be $2,661.21, not counting any payments you make for property taxes and homeowners insurance.

If you take out the same $400,000 loan with an interest rate of 7% but your term is 15 years, your monthly payment, again not counting taxes and insurance, would be $3,595.31. That's a jump of more than $934 a month when compared to the payment for a 30-year loan.

But while a longer-term loan comes with a smaller monthly payment, it will be more expensive over time. That's because you'll pay far more interest if you take the full term to pay off a longer-term loan than you would with a shorter-term loan.

Shorter-term loans come with lower initial interest rates, too. Freddie Mac said that the average interest rate on a 30-year fixed-rate mortgage stood at 6.72% as of July 10. The average rate on a 15-year fixed-rate mortgage was 5.86% as of the same day, according to Freddie Mac.

How interest rate impacts a $400K mortgage

Your mortgage’s interest rate is another key factor in determining the size of your monthly payment. The higher your interest rate, the higher your mortgage payment will be.

If you take out that $400,000 fixed-rate loan with a term of 30 years and an interest rate of 7%, your monthly payment not including taxes or insurance will be $2,661.21. But if your interest rate is 7.75% for that same loan, your monthly payment will jump to $2,865.65.

Adjustable-rate mortgages

You have options when taking out a mortgage. Instead of a fixed-rate loan, you can take out an adjustable-rate mortgage (ARM). With these loans, you’ll receive an interest rate that’s usually lower than market rate for the first 5 – 7 years of your mortgage. During these years, known as your ARM’s fixed period, your interest rate won’t change.

After the fixed period ends, your loan enters its adjustable period. During this period, which lasts until you pay off the loan, your interest rate will rise or fall, often once a year, according to whatever economic index your loan is tied to. This type of loan offers lower payments initially, because of your lower interest rate. But it also comes with uncertainty: Your payment can rise or fall throughout the loan’s adjustable period.

What determines your mortgage rate?

How do you qualify for the lowest mortgage interest rate? Lenders look at several factors.

A key factor in how your mortgage rate is determined is your three-digit credit score. FICO® credit scores of 740 to 799 are considered “very good” and scores of 800 or higher are considered “exceptional.” If your scores are in those ranges, you’ll boost your chances of landing a lower interest rate.

You can also qualify for a lower rate by taking out a shorter-term mortgage and providing a larger down payment for your loan.

Additional costs to consider

Remember that your mortgage payment isn’t only made up of principal and interest. You’ll usually have to set up an escrow account with your lender, too. You’ll pay extra each month to cover the costs of your homeowners insurance and property taxes, with your lender depositing these extra dollars in your escrow account. When these bills come due, your lender will use the money in the account to pay them for you.

If you provide a down payment that is less than 20% of your home’s purchase price, you’ll also have to pay for private mortgage insurance (PMI). This is a type of insurance that protects your lender if you stop making your payments. The cost of this insurance varies, but Freddie Mac says that you can expect to pay from $30 to $70 a month for every $100,000 that you borrow.

If you live in a condo building or a housing subdivision that’s governed by a homeowners association, you’ll also have to pay HOA fees. These will vary according to your homeowners association.

$400K mortgage payments at a glance

What will you pay each month for a $400,000 mortgage? The chart below shows how your monthly payment will change depending on your interest rate and term length. Remember that the payments listed below don’t include any money you’ll pay for property taxes and homeowners insurance.

Amortization schedule on a $400,000 mortgage

How much will you spend on interest if you take the full term to pay off your $400,000 mortgage? Again, that depends on your interest rate and term length. Below is an amortization schedule showing how much you’d spend on interest to pay off a 30-year fixed-rate mortgage of $400,000 with an interest rate of 7%. Again, the schedule only includes your loan’s principal and interest, not any dollars you’ll spend on taxes and insurance.

Costs involved with getting a $400K mortgage

In addition to your down payment, you’ll also need to pay for your mortgage’s closing costs. These vary but typically run from 3% to 6% of your mortgage amount. If you are taking out a $400,000 mortgage, you can expect to pay $12,000 – $24,000 in closing costs.

You can pay these costs up front when closing on your loan or your lender might allow you to roll the closing costs into your mortgage total. You’d then pay your closing costs back over time with each mortgage payment, increasing the total amount of loan dollars that you’re borrowing.

How to get a $400K mortgage

Applying for a mortgage can seem like an intimidating process. Understanding the process of qualifying for a $400,000 mortgage, though, can remove some of the stress. Here’s a look at the steps you’ll take when applying for a mortgage.

1. Ensure you meet the requirements. Before applying for a mortgage, make sure that your credit score is high enough and debt-to-income ratio low enough. It varies by lender and loan type, but you’ll typically need a FICO® Score of at least 620 to qualify for a conventional mortgage, a loan not insured by a government agency. Lenders vary, too, on debt-to-income ratio, but many want your monthly recurring debts, including your new mortgage payment, to equal no more than 36% of your gross monthly income.
2. Choose a mortgage lender. You might be able to save money on closing costs and other fees if you shop around with more than one mortgage lender. Different lenders might also offer a wider variety of loan programs.
3. Get preapproved for a $400K mortgage. It’s important to get preapproved before you start shopping for a home. During this process, a lender will review your credit score and verify your income, telling you how much it will lend you. Once you know this, you won’t waste time looking at homes you can’t afford. Best of all, getting preapproved for a mortgage is free. You aren’t required to take out your final mortgage loan with the lender that preapproved you.
4. Find a house and make an offer. Armed with your preapproval letter, you can find a home and make an offer. You’ll be a more attractive buyer to sellers because your preapproval letter shows that you can qualify for a mortgage. Your offer, then, is less likely to fall through.
5. Get your inspection and appraisal. Once the seller approves your offer, you’ll order a home inspection, in which an inspector will tour the home to look for any potential issues. Your lender will order an appraisal, in which an appraiser will determine the market value of the home. Your lender wants to make sure that you are not paying too much for the home.
6. Complete underwriting. Next, your lender will complete the underwriting process, in which it verifies your income, checks your credit and makes sure you can afford your new monthly payment. During this process, your lender will give your loan its final approval.
7. Close on your new home. When it’s time to close on your loan, your lender will provide you with a Closing Disclosure. This document lists the details of your loan, including its interest rate and closing costs. This document will also list how much money you’ll need to bring on closing day, the day on which you’ll get the keys to your new home.

FAQ on $400K mortgages

Questions about the monthly payment on a $400,000 mortgage? Here are some answers. Check out the online resources from Rocket Mortgage to learn more about the mortgage process.

How much should I make to afford a $400K mortgage?

A good rule of thumb is to follow the 28% rule: Your total housing costs, including your mortgage payment, insurance and property taxes, should not exceed 28% of your monthly income.

What down payment is needed for a $400K house?

How much you’ll need for a down payment depends on your mortgage, but if you want to avoid paying for private mortgage insurance, you’ll need a down payment of at least 20% of your home’s purchase price. If you are buying a home that costs $400,000, that 20% down payment comes out to $80,000.

How can I get approved for a $400K mortgage?

Qualifying for a $400,000 mortgage requires good credit, a low debt-to-income ratio and savings that you can spend on the up-front costs of applying for a mortgage.

Credit score: Lenders vary, but the higher your credit score, the more likely you are to qualify for a $400,000 mortgage with a lower interest rate. FICO® considers a credit score of at least 740 to be “very good.” If you aim for that score, you’ll boost your chances of getting that lower-rate mortgage.

Debt-to-income ratio: It varies, but many lenders want your monthly recurring debts to equal no more than 36% of your gross monthly income. Lenders consider your new monthly mortgage payment; student, auto and personal loan payments; and minimum monthly credit card payments as your recurring debts when figuring your debt-to-income ratio. They also consider child support and alimony payments.

Savings: You’ll need enough savings to make your down payment and pay closing costs. Many lenders also require that you have enough cash left over after paying these costs to cover at least 2 months of mortgage payments.

The bottom line: Know the basics of a $400K mortgage

The key when applying for a $400,000 mortgage is to make sure that you can afford the monthly payment that comes with it. Before applying, then, check your household budget to determine how much money you can afford to spend on a mortgage payment. You don’t want to look for a home that requires a $400,000 mortgage if the payment that comes with it will make it a struggle to pay your other monthly bills.

To get an idea of what a $400,000 mortgage will cost you each month, use our mortgage calculator. It allows you to input your loan term and interest rate to calculate your payment.

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