Question 1

What's the monthly payment on a $400,000 mortgage right now?

Accepted Answer

At the Freddie Mac average 30-year fixed rate of 7.28% (week of October 1, 2026), a $400,000 home with 20% down ($320,000 loan) runs about $2,189/month in principal and interest. Add in property taxes (typically $300–$700/month depending on your state) and homeowners insurance ($100–$200/month) and your total PITI lands around $2,500–$3,000/month. Use the calculator above and plug in your actual rate — even a 0.25% difference shifts the payment by $50+/month.

Question 2

How much do I need to make to afford a $500,000 house?

Accepted Answer

Using the 28% rule that most conventional lenders apply, you need gross income of roughly $120,000–$130,000/year to comfortably afford a $500,000 home with 20% down. That keeps your PITI around $2,800/month, which is 28% of $10,000/month gross. If you're putting less than 20% down, factor in PMI — that's usually another $100–$200/month on a $400,000 loan. See what home price fits your income with our [Mortgage Affordability Calculator](/calculators/mortgage-affordability-calculator/).

Question 3

Is a 15-year mortgage worth it over 30 years right now?

Accepted Answer

On a $350,000 loan the math is stark: 30-year at 6.75% = $2,270/month and $467,000 total interest. 15-year at 6.25% = $3,001/month and $190,000 total interest. You pay $731 more every month but save $277,000 over the life of the loan. If you've got the cash flow and you're not leaving 401(k) match on the table, the 15-year almost always wins mathematically. Run your own numbers above.

Question 4

What credit score do I need to get a good mortgage rate?

Accepted Answer

Lenders typically tier rates by score: 760+ gets you the best rates (the ones you see advertised), 720–759 is still solid, 680–719 you'll pay maybe 0.25–0.5% more, and below 640 you're likely looking at FHA territory. Going from a 680 to a 760 FICO can save you $100+/month on a $350,000 mortgage — worth spending 6–12 months boosting your score before applying if you're close to a tier boundary.

Question 5

How does PMI work and when does it go away?

Accepted Answer

PMI (Private Mortgage Insurance) kicks in whenever you put less than 20% down on a conventional loan — it protects the lender, not you. It typically runs 0.5%–1.5% of your loan amount per year. On a $300,000 loan that's $125–$375/month on top of your P&I. The good news: under the Homeowners Protection Act, your lender must cancel PMI automatically when your loan balance hits 78% of the original purchase price. You can also request cancellation at 80% — just call your servicer and ask.

Question 6

What's the difference between conforming and jumbo loans in 2026?

Accepted Answer

The 2026 conforming loan limit set by the FHFA is $832,750 for most US counties (higher in expensive markets like San Francisco and New York — up to $1,249,125). Loans at or below that limit are 'conforming' and backed by Fannie Mae/Freddie Mac, which means lower rates and easier qualification. Anything above is a jumbo loan — rates are typically 0.25–0.5% higher and lenders want 700+ FICO and 15–20% down minimum.

Home price	$450,000
Down payment	$90,000
Loan amount	$360,000
Principal and interest	$2,335/month
Property tax and insurance	$600/month
Estimated total monthly payment	$2,935/month
Estimated total interest over 30 years	$480,583

Mortgage Calculator

Example monthly payment on a $450,000 home

What You Should Know

Calculation methodology

How Your Monthly Mortgage Payment Breaks Down

The formula behind the number

PITI: what your actual monthly payment includes

Why early payments mostly go to interest

2026 US mortgage market context

Frequently Asked Questions

What this example assumes

Data sources

CalcWyse Editorial Team