How much would a $300,000 mortgage cost monthly?

Homebuying can be a stressful and complex process. But in the end, most buyers want to be rewarded with a home they care about for a price they can easily afford. To accomplish that goal, however, buyers will need to consider multiple factors, with their budget being the most important. This, too, can be particularly complex, especially now as the interest rate climate evolves and speculation over multiple interest rate cuts intensifies. Against this backdrop, it’s critically important that buyers understand what their payments will be, both if they act now and if they wait to buy later in 2024 or 2025.

With the average home price around $427,000 right now, many homebuyers throughout the United States may be wondering what a mortgage on the low end of that spectrum costs. Below, we’ll calculate exactly what a $300,000 mortgage will cost buyers who act now, as well as it would that payment could look like once rate cuts reverberate through the market.

Start by seeing how low of a mortgage interest rate you could secure here.

How much would a $300,000 mortgage cost monthly?

Mortgage interest rates, while still more than double what they were at the height of the pandemic, have been slowly declining as inflation has cooled and talk of rate cuts has grown. That’s left them more than a full percentage point lower than they were toward the end of 2023, for example. Here’s what a $300,000 monthly mortgage payment would be at today’s rates, accounting for the conventional 20% down payment ($60,000) and excluding homeowners insurance and taxes:

• 15-year mortgage at 5.86%: $2,007.15 per month
• 30-year mortgage at 6.44%: $1,507.51 per month

But while a 25 basis point reduction to the federal funds rate may not mirror exactly what homebuyers can get from lenders, it’s still important to know how much payments at the lower rate would be to determine if it’s worth waiting. Here’s how they could drop if rates fall by 25 basis points:

• 15-year mortgage at 5.61%: $1,975.04 per month
• 30-year mortgage at 6.19%: $1,468.37 per month

And here’s what mortgage payments would be on a $300,000 mortgage if rates drop a half a percentage point, either later this month or cumulatively in the months ahead:

• 15-year mortgage at 5.36%: $1,943.22 per month
• 30-year mortgage at 5.94%: $1,429.68 per month

So you could potentially save more than $50 each month if you wait for mortgage interest rates to drop. But waiting could provide another set of complications, including increased competition for limited housing inventory and rising prices as sellers take advantage of a rejuvenated market. It’s critical, then, to weigh these scenarios as accurately as possible to determine if waiting for a mortgage rate cut actually makes sense for you.

Learn more about your current mortgage rate options here.

What about 15-year mortgages?

15-year mortgage payments, no matter the mortgage origination amount, will always be more expensive than 30-year terms thanks to the condensed time frame. But if you’re looking for the lowest mortgage interest rate possible, as the above examples show, 15-year mortgages are more than half a percentage point lower than their 30-year loan counterparts now. And you’ll save significant sums of interest over the life of the mortgage thanks to that abbreviated payoff. Plus, if you pay for mortgage points on a 15-year option, you may be able to secure an even lower rate than what’s advertised for qualified borrowers. Yes, 15-year mortgages aren’t for everyone, but in today’s rapidly changing economic climate, they’re at least worth investigating.

The bottom line

A $300,000 mortgage loan comes with affordable monthly payments now and the inherent possibility of lower payments soon if buyers prefer to act then instead. But waiting could bring its own complications, including additional competition and possibly higher home prices. So buyers will need to add all of these factors into their final decision – along with exploring the pros and cons of 15-year mortgages, as well – in order to best determine their best strategy.

Have more questions? See what mortgage rates and terms you qualify for online now.