How Much a $400,000 Mortgage Will Cost You - Credible News

A $400,000 mortgage comes with many costs — some included in your monthly mortgage payment, some not. Comparing lenders and loan terms is critical to getting the lowest-cost loan possible.
Aly J. Yale

Aly J. Yale is a mortgage and real estate authority. Her work has appeared in Forbes, Fox Business, The Motley Fool, Bankrate, The Balance, and more.

Read more” > Aly J. Yale Edited by <a href="" class="entry-meta__tooltip" data-tooltipjs="" data-tooltipjs-hover="true" data-tooltipjs-placement="top" data-tooltipjs-close-on-outside-click="true" data-tooltipjs-title="Credible’s editing process includes rigorous fact-checking by experts to ensure that all content is accurate and up-to-date. This article has been reviewed, edited, and fact-checked by Chris Jennings. As a Credible authority on mortgages, Chris covers topics including home loans and mortgage refinancing. His work has appeared in Fox Business and GOBankingRates.Read more” > Chris Jennings Updated October 11, 2021
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Mortgage loans come with a variety of costs — not just a monthly payment. On a mortgage as large as $400,000, these costs may be significant, so it’s important to weigh them carefully before applying for the loan.
This will ensure you can comfortably afford the mortgage — both now and in the long haul.
Learn more about how much a $400,000 mortgage will cost you throughout the life of the loan:

On a $400,000 mortgage with an annual percentage rate (APR) of 3%, your monthly payment would be $1,686 for a 30-year loan and $2,762 for a 15-year one.
Here’s a look at what generally goes into a mortgage payment:
Let us know where you are in the homebuying process below. Credible can help you find a great mortgage in just a few minutes and put you on the path to pre-approval.
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Here’s a quick look at what the monthly principal and interest payment would be for a $400,000 mortgage with varying rates:
Check out: 20- vs 30-Year Mortgage: Is an Unusual Option Right for You?
Shopping around for your mortgage is critical if you want to get the lowest interest rate. To do this, you’ll either need to apply to several mortgage lenders directly.
Once you have a few loan estimates in hand, you can compare the costs of each lender one by one. Make sure to look at the APR, origination fee, mortgage points, and the total cash you’ll need to bring to closing.
From there, you can choose the best offer, proceed with the lender’s full application, and provide any financial documentation they might require.
You can also use Credible to shop all of our partner lenders at once. Credible can ease the process and allow you to receive and compare multiple prequalified rates faster. Our process is entirely online, and it only takes a few minutes.
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Before you take out a loan as large as $400,000 — or any mortgage loan, really — you’ll need to understand the total costs of the loan.
You should know what your closing costs and monthly payment will be, how much you’ll need for a down payment, and the total interest you’ll pay over time.
The total interest you’ll pay will depend on both your APR and the length of your loan. Longer loan terms and higher APRs will result in more interest costs in the long run.
Use Credible to shop around for competitive rates from our partner lenders.
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On a 15-year, $400,000 mortgage loan with a 3% APR, for example, you’d pay $97,218 in total interest by the end of your loan term.
On a 30-year loan with the same details, your interest costs would jump to $207,109 — a shocking $110,000 more.
Use the below calculator to see how much interest you’ll pay, as well as what your home will cost you every month.
Enter your loan information to calculate how much you could pay
With a $ home loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the mortgage.
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Check Out: How to Buy a House: Step-by-Step Guide
An amortization schedule, which breaks down the principal and interest payments for a loan, can help you understand the long-term costs of your mortgage.
As you’ll see below, the bulk of your payments will go toward interest costs. Once you get further into your loan term, more of your payments go toward your loan balance, and you’ll start reducing that principal at a faster rate.
Here’s what an amortization schedule looks like for a 30-year, $400,000 mortgage with an APR of 3%:
And here’s what an amortization schedule looks like for a 15-year, $400,000 mortgage with an APR of 3%:
When filling your mortgage application out, you’ll want to have some financial details on hand, including your income, estimated credit score, homebuying budget, and info regarding your assets and savings.
How Much a 0,000 Mortgage Will Cost You - Credible News
Applying for your $400,000 mortgage doesn’t have to be complicated — just follow these simple steps:
Learn More: How to Know If You Should Buy a House
Aly J. Yale is a mortgage and real estate authority. Her work has appeared in Forbes, Fox Business, The Motley Fool, Bankrate, The Balance, and more.
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