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Home / Mortgage payment / $350,000 over 20 years

$350,000 Mortgage Over 20 Years

This page shows what a $350,000 mortgage costs over 20 years. The starting rate is 6 percent and you can change it to match a quote you have.

The starting payment is $2,507.51 a month. Over 240 payments you would pay $251,802 in interest.

$
%
years
$
Monthly payment
$2,507.51
Total interest
$251,802
Total paid
$601,802
Year by year
YearPrincipal paidInterest paidBalance left
1$9,344$20,746$340,656
2$9,921$20,169$330,735
3$10,533$19,558$320,203
4$11,182$18,908$309,020
5$11,872$18,218$297,149
6$12,604$17,486$284,545
7$13,381$16,709$271,163
8$14,207$15,883$256,956
9$15,083$15,007$241,873
10$16,013$14,077$225,860
11$17,001$13,089$208,859
12$18,050$12,041$190,809
13$19,163$10,927$171,647
14$20,345$9,745$151,302
15$21,600$8,491$129,702
16$22,932$7,158$106,771
17$24,346$5,744$82,424
18$25,848$4,242$56,577
19$27,442$2,648$29,135
20$29,135$956$0
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How the payment is worked out

Here is the formula in plain words. The payment equals the loan times the monthly rate over one minus a discount factor. The discount factor is one divided by one plus the monthly rate, multiplied out 240 times. With 6 percent a year the monthly rate is 0.5 percent. The loan here is $350,000.

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Worked example

Take $350,000 at 6 percent over 20 years. The monthly payment is $2,507.51. In the first month $1,750.00 goes to interest and $757.51 goes to principal.

Total interest on this loan is $251,802. After 10 years of payments the balance has fallen to $225,860.

Questions about this calculator

Is it better to put extra money toward a $350,000 mortgage over 20 years or save it elsewhere?

The calculator can only show what extra payments do. On this loan an extra $250 a month saves $45,136 of interest and ends the loan 3 years 2 months sooner. Whether that beats saving or investing the money depends on your other goals and on what you could earn elsewhere.

What if the rate on a $350,000 mortgage over 20 years were one point higher?

The payment would rise from $2,507.51 to $2,713.55, which is $206.04 more each month. One point lower would give $2,309.85.

Would paying $250 extra each month shorten a $350,000 mortgage over 20 years?

Yes. On this $350,000 loan an extra $250 each month ends the loan 3 years 2 months sooner and saves $45,136 of interest.

Is 20 years the right length for a $350,000 mortgage?

It depends on the monthly payment you can carry. At 6 percent this term costs $2,507.51 a month. A 30-year term would cost $2,098.43 a month and $405,434 in interest, compared with $251,802 over 20 years.

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This page is for education only and is not financial or tax advice.