$250,000 mortgage at 5%: monthly payment over 30 and 15 years
Borrow $250,000 at 5% and the principal-and-interest payment is $1,342.05 a month over 30 years, or $1,976.98 over 15. The rest of this page shows where the money goes: total interest, the balance year by year, the month PMI can end, and what a late payment costs.
| 30-year fixed | 15-year fixed | |
|---|---|---|
| Monthly principal & interest | $1,342.05 | $1,976.98 |
| Total interest over the term | $233,139 | $105,857 |
| Total paid (principal + interest) | $483,139 | $355,857 |
| Interest as a share of total paid | 48% | 30% |
Principal and interest only. Property taxes, homeowners insurance, mortgage insurance and HOA dues are added to the actual payment. Rates shown are for the arithmetic, not an offer; see 30-year vs 15-year for how to choose.
Amortization milestones
Year one: $16,105 paid, $12,416 of it interest, $3,688 principal. That ratio is why equity builds slowly at first and why extra principal payments early are worth the most.
| After | Remaining balance | Paid down |
|---|---|---|
| 5 years | $229,572 | $20,428 |
| 10 years | $203,355 | $46,645 |
| 15 years | $169,710 | $80,290 |
| 20 years | $126,531 | $123,469 |
| 25 years | $71,116 | $178,884 |
Mortgage insurance: the months that matter
The Homeowners Protection Act sets two thresholds on the original value — 80% on request, 78% automatic. Here is when the regular amortization of this loan reaches them, depending on how much was put down:
| Starting LTV | Home value | 80% (request) | 78% (automatic) |
|---|---|---|---|
| 97% | $257,732 | month 115 | month 125 |
| 95% | $263,158 | month 106 | month 117 |
| 90% | $277,778 | month 79 | month 92 |
Extra principal payments or a new appraisal showing appreciation can bring cancellation forward — see PMI removal. FHA mortgage insurance follows different rules.
The price of paying late
On a $1,342.05 payment, the usual 4% to 5% late fee is $53.68 to $67.10 once the grace period ends. The fee is the small cost; the 30-day credit mark is the large one. Before it happens: the first 72 hours after a missed payment.
Standard amortization formula
M = P × r(1 + r)n ÷ ((1 + r)n − 1), where P = $250,000, r = 5% ÷ 12 = 0.4167% per month, n = 360 (30 years) or 180 (15 years).
This is the standard fixed-rate amortization — the payment is constant, the interest share falls each month as the balance falls. Balance after k payments: P(1 + r)k − M((1 + r)k − 1) ÷ r.
Frequently asked questions
What is the monthly payment on a $250,000 mortgage at 5%?
$1,342.05 a month for principal and interest on a 30-year fixed loan, or $1,976.98 on a 15-year fixed loan. Property taxes, homeowners insurance, mortgage insurance and any HOA dues are added on top and typically raise the total payment by 25% to 50%.
How much interest will I pay on a $250,000 loan at 5%?
$233,139 over 30 years, or $105,857 over 15 years, if every payment is made as scheduled with no extra principal. In the first year of the 30-year loan, about $12,416 of your $16,105 in payments is interest and $3,688 reduces the balance.
When can I cancel PMI on a $250,000 loan at 5%?
By the regular schedule alone, a loan that started at 95% of the home’s value reaches 80% loan-to-value in month 106 (when you may request cancellation) and 78% in month 117 (automatic cancellation). Extra principal payments or an appraisal showing appreciation can move that earlier.
Same amount, other rates: 6% · 7% · 8%. Same rate, other amounts: $150,000 · $200,000 · $300,000 · $350,000 · $400,000 · $500,000 · $600,000 · $800,000. All tables.