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. Show This will ensure you can comfortably afford the mortgage — both now and in the long haul. With Credible, you can easily compare mortgage rates from multiple lenders and get pre-approved in minutes. Monthly payments for a $400,000 mortgageOn 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. Keep in mind, though: Monthly mortgage payments don’t just go toward lowering your loan balance, but also toward a number of other expenses, too — things like taxes and insurance, for example. Here’s a look at what generally goes into a mortgage payment:
Here’s a quick look at what the monthly principal and interest payment would be for a $400,000 mortgage with varying rates: Where to get a $400,000 mortgageShopping 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. Story continues From there, you can choose the best offer, proceed with the lender’s full application, and provide any financial documentation they might require. Credible can ease the process and allow you to receive and compare multiple prequalified rates faster, entirely online and in just a few minutes. What to consider before applying for a $400,000 mortgageBefore 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. Total interest paid on a $400,000 mortgageThe 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. 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. You can use a mortgage calculator to see how much interest you’ll pay, as well as what your home will cost you every month. How to get a $400,000 mortgageWhen 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. Applying for your $400,000 mortgage doesn’t have to be complicated — just follow these simple steps:
Be sure to comparison shop to find the best mortgage rate available to you. Credible makes it easy to compare mortgage rates and get pre-approved in minutes. About the author: 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. |