$300,000 mortgage at 7%: monthly payment over 30 and 15 years
Borrow $300,000 at 7% and the principal-and-interest payment is $1,995.91 a month over 30 years, or $2,696.48 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 | $1,995.91 | $2,696.48 |
| Total interest over the term | $418,527 | $185,367 |
| Total paid (principal + interest) | $718,527 | $485,367 |
| Interest as a share of total paid | 58% | 38% |
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.
How fast the balance falls
Early payments are mostly interest: $20,903 of year one’s $23,951 goes to the lender as interest and $3,047 to your balance. The balance below shows the curve.
| After | Remaining balance | Paid down |
|---|---|---|
| 5 years | $282,395 | $17,605 |
| 10 years | $257,437 | $42,563 |
| 15 years | $222,057 | $77,943 |
| 20 years | $171,900 | $128,100 |
| 25 years | $100,797 | $199,203 |
Reaching 80% loan-to-value
For a borrower who put less than 20% down, the question is when the balance hits 80% and 78% of the original value. Without extra principal or a new appraisal, this loan gets there in:
| Starting LTV | Home value | 80% (request) | 78% (automatic) |
|---|---|---|---|
| 97% | $309,278 | month 140 | month 151 |
| 95% | $315,789 | month 130 | month 142 |
| 90% | $333,333 | month 101 | month 115 |
Extra principal payments or a new appraisal showing appreciation can bring cancellation forward — see PMI removal. FHA mortgage insurance follows different rules.
Late fees and the 30-day line
On a $1,995.91 payment, the usual 4% to 5% late fee is $79.84 to $99.80 once the grace period ends. The fee is the small cost; the 30-day credit mark is the large one. See what happens at 30, 60, 90 and 120 days.
The formula
M = P × r(1 + r)n ÷ ((1 + r)n − 1), where P = $300,000, r = 7% ÷ 12 = 0.5833% per month, n = 360 (30 years) or 180 (15 years).
The balance after k payments is P(1 + r)k − M((1 + r)k − 1) ÷ r; total interest is M × n − P. No rounding beyond the displayed cents.
Frequently asked questions
What is the monthly payment on a $300,000 mortgage at 7%?
$1,995.91 a month for principal and interest on a 30-year fixed loan, or $2,696.48 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 $300,000 loan at 7%?
$418,527 over 30 years, or $185,367 over 15 years, if every payment is made as scheduled with no extra principal. In the first year of the 30-year loan, about $20,903 of your $23,951 in payments is interest and $3,047 reduces the balance.
When can I cancel PMI on a $300,000 loan at 7%?
By the regular schedule alone, a loan that started at 95% of the home’s value reaches 80% loan-to-value in month 130 (when you may request cancellation) and 78% in month 142 (automatic cancellation). Extra principal payments or an appraisal showing appreciation can move that earlier.
Same amount, other rates: 5% · 6% · 8%. Same rate, other amounts: $150,000 · $200,000 · $250,000 · $350,000 · $400,000 · $500,000 · $600,000 · $800,000. All tables.