10% down or 20% down?
On a $375,000 home, 20% down gives you this $300,000 loan at $2,077.14. Putting down only 10% raises the loan to $337,500, principal and interest to $2,336.78, and adds PMI of about $140.63 at 0.5%. That is $400.27 more a month, but it keeps $37,500 in your pocket. PMI drops off automatically at 78% of the original value, and you can ask to cancel it at 80%.
What the payment looks like in practice
At this balance, property tax and insurance add about $423.02 a month at national averages, so a full payment near $2,500.16 is realistic for a typical home. In a low-tax, low-premium state the same loan costs much less than in Illinois or Texas.
Early years go mostly to interest
Payment #1 includes only $227.14 of principal. Principal doesn't outweigh interest until year 21, and after ten years you still owe $259,808. That is why moving after five years builds less equity than buyers expect.
Payment by rate and term
| Rate | 15-year | 20-year | 30-year | 30-year total interest |
|---|---|---|---|---|
| 5.5% | $2,451.25 | $2,063.66 | $1,703.37 | $313,212 |
| 6% | $2,531.57 | $2,149.29 | $1,798.65 | $347,515 |
| 6.5% | $2,613.32 | $2,236.72 | $1,896.20 | $382,633 |
| 7% | $2,696.48 | $2,325.90 | $1,995.91 | $418,527 |
| 7.4% | $2,764.02 | $2,398.47 | $2,077.14 | $447,770 |
| 7.5% | $2,781.04 | $2,416.78 | $2,097.64 | $455,152 |
| 8% | $2,866.96 | $2,509.32 | $2,201.29 | $492,466 |
FHA vs. conventional on a $375,000 home
For a $375,000 purchase, the gap between 20% down and 3.5% down is about $61,875 of extra borrowing. That raises both the payment and the interest you pay. Buyers who can reach 10% down on an FHA loan get the annual premium removed after 11 years, so it is worth pricing a middle option too. FHA here includes the 1.75% upfront premium (financed) and the 0.55% annual premium; conventional PMI is shown at 0.5% a year.
| Option | Down payment | Loan amount | Monthly payment incl. tax, insurance and MI | Income needed (28%) |
|---|---|---|---|---|
| Conventional, 20% down | $75,000 | $300,000 | $2,500.16 | $107,150 |
| Conventional, 5% down with PMI | $18,750 | $356,250 | $3,038.06 | $130,203 |
| FHA, 3.5% down | $13,125 | $368,208 | $3,138.27 | $134,497 |
Property taxes on a $375,000 home
At the national effective rate of 0.89%, tax on this home is about $3,339 a year. It would be about $1,013 in Hawaii (0.27%) and $7,200 in Illinois (1.92%), a gap of $515.63 a month.
By state
| State | With tax & insurance | Share of median income |
|---|---|---|
| Alabama | $2,354.72 | 42.39% |
| North Carolina | $2,422.10 | 39.30% |
| California | $2,436.93 | 29.20% |
| Florida | $2,543.10 | 39.26% |
| Ohio | $2,551.39 | 42.40% |
| New York | $2,680.35 | 37.48% |
| Texas | $2,725.18 | 41.02% |
| Illinois | $2,800.47 | 40.39% |
FAQ
What is the monthly payment on a $300,000 mortgage?
At 7.40% for 30 years, principal and interest is $2,077.14 a month. At 6.71% for 15 years it is $2,648.08. Taxes, insurance and any PMI are extra.
Is $300,000 the average mortgage?
It is close. A home at the 2024 median value of $360,600 financed with 15%–20% down comes to roughly $290,000–$307,000.
Other amounts: $200,000 · $250,000 · $350,000 · $400,000 · $500,000
Rates: Freddie Mac PMMS, week of October 15, 2026. Taxes, income: Census ACS 2024. Insurance: NAIC 2023.