What is monthly mortgage payment on 250k?

AffiliatePal is reader-supported. When you buy through links on our site, we may earn an affiliate commission.



The monthly mortgage payment on a $250,000 loan amount depends on various factors such as the interest rate, loan term, and type of mortgage. In this article, we will explore these factors and provide an estimate of what the monthly mortgage payment might be for a $250,000 loan.

Interest Rate

The interest rate plays a significant role in determining the monthly mortgage payment. A lower interest rate will result in a lower monthly payment, while a higher interest rate will increase the monthly payment. The interest rate is typically expressed as an annual percentage rate (APR).

Loan Term

The loan term refers to the length of time over which the loan will be repaid. Common loan terms for mortgages are 15 years and 30 years. The longer the loan term, the lower the monthly payment will be, but the total interest paid over the life of the loan will be higher. Conversely, a shorter loan term will result in a higher monthly payment but less interest paid overall.

Type of Mortgage

There are different types of mortgages available, including fixed-rate mortgages and adjustable-rate mortgages (ARMs). With a fixed-rate mortgage, the interest rate remains constant throughout the loan term, providing predictable monthly payments. On the other hand, ARMs have an initial fixed-rate period, typically 5, 7, or 10 years, after which the interest rate can adjust annually based on market conditions. The initial fixed-rate period usually offers lower interest rates compared to fixed-rate mortgages, resulting in lower initial monthly payments.

Calculating the Monthly Mortgage Payment

To estimate the monthly mortgage payment on a $250,000 loan, we need to consider the interest rate, loan term, and type of mortgage. Let’s assume a 30-year fixed-rate mortgage with an interest rate of 4%.

Using a mortgage calculator or a mathematical formula, we can determine the monthly payment. The formula to calculate the monthly payment is:

Monthly Payment = Loan Amount * (Interest Rate / 12) / (1 – (1 + Interest Rate / 12) ^ (-Loan Term * 12))

Plugging in the values, we get:

Monthly Payment = $250,000 * (0.04 / 12) / (1 – (1 + 0.04 / 12) ^ (-30 * 12))

Calculating this equation, the estimated monthly mortgage payment on a $250,000 loan with a 30-year fixed-rate mortgage at 4% interest rate would be approximately $1,193.

It’s important to note that this is just an estimate, and the actual monthly payment may vary based on additional factors such as property taxes, homeowner’s insurance, and private mortgage insurance (PMI) if applicable.


In conclusion, the monthly mortgage payment on a $250,000 loan depends on the interest rate, loan term, and type of mortgage. By considering these factors, we can estimate the monthly payment to be around $1,193 for a 30-year fixed-rate mortgage at a 4% interest rate. However, it is always recommended to consult with a mortgage lender or use a mortgage calculator to get an accurate estimate based on your specific situation.


– Bankrate: bankrate.com
– Investopedia: investopedia.com
– The Balance: thebalance.com