Paying points
One discount point costs 1% of the loan ($3,500) and typically lowers the rate by about a quarter point. That cuts the payment to roughly $2,363.92, saving $59.41 a month, so it takes about 59 months to break even. If you might sell or refinance before then, skip the points.
Every $10,000 you add to the down payment
Borrowing $10,000 less lowers the payment by $69.24 a month and saves about $14,926 of interest over 30 years. Whether that beats keeping the cash depends on your emergency fund and what else the money could earn.
Where this loan fits
With 20% down it buys a $437,500 home, above the median in 37 of the 50 states and D.C. (51 in all) The places with a higher median are California; Colorado; Washington, D.C.; Hawaii; Idaho; Massachusetts; Nevada; New Hampshire; New Jersey; New York; Oregon; Rhode Island; Utah; Washington.
Payment by rate and term
| Rate | 15-year | 20-year | 30-year | 30-year total interest |
|---|---|---|---|---|
| 5.5% | $2,859.79 | $2,407.61 | $1,987.26 | $365,414 |
| 6% | $2,953.50 | $2,507.51 | $2,098.43 | $405,434 |
| 6.5% | $3,048.88 | $2,609.51 | $2,212.24 | $446,406 |
| 7% | $3,145.90 | $2,713.55 | $2,328.56 | $488,281 |
| 7.4% | $3,224.69 | $2,798.21 | $2,423.33 | $522,399 |
| 7.5% | $3,244.54 | $2,819.58 | $2,447.25 | $531,010 |
| 8% | $3,344.78 | $2,927.54 | $2,568.18 | $574,543 |
Equity built on $350,000 in the first 10 years
Year 5 balance: $330,830 ($19,170 repaid). Year 10 balance: $303,110 ($46,890 repaid, $243,909 of interest paid). With a 15-year loan, ten years of payments cut the debt by $192,895, which matters if you expect to move or refinance.
FHA vs. conventional on a $437,500 home
At $437,500, FHA's financed 1.75% upfront premium alone adds about $7,388 to the loan. FHA loan limits are set by county, so confirm yours, and if you are buying a condo, check that the project is on FHA's approved list. Mortgage insurance in the table: FHA upfront 1.75% (added to the balance) plus 0.55% annual; conventional PMI 0.5% per year.
| Option | Down payment | Loan amount | Monthly payment incl. tax, insurance and MI | Income needed (28%) | Cash for down payment |
|---|---|---|---|---|---|
| Conventional, 20% down | $87,500 | $350,000 | $2,892.73 | $123,974 | $87,500 plus closing costs |
| Conventional, 5% down with PMI | $21,875 | $415,625 | $3,520.28 | $150,869 | $21,875 plus closing costs |
| FHA, 3.5% down | $15,313 | $429,576 | $3,637.20 | $155,880 | $15,313 plus closing costs |
Property taxes on a $437,500 home
Expect around $3,896 of yearly tax nationally, but location moves it by $601.56 a month: from $1,181 in Hawaii to $8,400 in Illinois. At this price, check the county rate before you settle on a budget.
| State | Effective rate | Yearly tax | Monthly |
|---|---|---|---|
| Illinois | 1.92% | $8,400 | $700.00 |
| New Jersey | 1.89% | $8,269 | $689.06 |
| Connecticut | 1.66% | $7,263 | $605.21 |
| New Hampshire | 1.46% | $6,388 | $532.29 |
| New York | 1.45% | $6,344 | $528.65 |
Income needed for $350,000 at 28% and 36%
At $350,000, even modest debts raise the bar quickly: $1,000 a month of other payments lifts the 36% requirement to $129,758. If your income is close to the line, a smaller loan, a 15% down payment or paying off a car loan can move you under the limit faster than waiting for rates to fall. At this size, every $10,000 you add to the down payment cuts the principal-and-interest payment by about $69.24 a month and lowers the income needed by roughly $2,967.
| Other monthly debts | Income needed (28% housing rule) | Income needed (36% total-debt rule) | Income that satisfies both |
|---|---|---|---|
| $0 | $123,974 | $96,424 | $123,974 |
| $300 | $123,974 | $106,424 | $123,974 |
| $600 | $123,974 | $116,424 | $123,974 |
| $1,000 | $123,974 | $129,758 | $129,758 |
By state
| State | With tax & insurance | Share of median income |
|---|---|---|
| Alabama | $2,720.70 | 48.98% |
| North Carolina | $2,800.06 | 45.43% |
| California | $2,820.10 | 33.79% |
| Florida | $2,928.35 | 45.21% |
| Ohio | $2,961.12 | 49.21% |
| New York | $3,102.06 | 43.38% |
| Texas | $3,139.60 | 47.26% |
| Illinois | $3,246.66 | 46.82% |
FAQ
What is the monthly payment on a $350,000 mortgage?
Budget $2,423.33 monthly at today's 7.40% 30-year rate; the 15-year option at 6.71% costs $3,089.43. Escrow is separate.
Is a $350,000 mortgage a jumbo loan?
No. It is far below the 2026 conforming limit, so standard conventional pricing and PMI rules apply.
Other amounts: $200,000 · $250,000 · $300,000 · $400,000 · $500,000
Rates: Freddie Mac PMMS, week of October 15, 2026. Taxes, income: Census ACS 2024. Insurance: NAIC 2023.