Home / Mortgage payment / At 9 percent
Mortgage Payment at 9 Percent
Use 9 percent here as a what-if rate. The page does not say what any lender offers. It shows what that rate does to a $300,000 loan over 30 years.
At 9 percent the monthly payment on the starting loan is $2,413.87. Total interest over the term is $568,992.
How the payment is worked out
Think of the payment as the amount that makes all 360 future payments worth exactly $300,000 at the start with a monthly rate of 0.75 percent. Written out it is the loan times the monthly rate, divided by one minus one over one plus the monthly rate, raised to the power of 360.
Worked example
A $300,000 loan at 9 percent over 30 years costs $2,413.87 a month. Interest takes $2,250.00 of the first payment.
Each point matters. At 8 percent the total interest is $492,466. At 10 percent it is $647,777. The page rate of 9 percent sits between at $568,992.
Questions about this calculator
What would one point less than 9 percent save?
Moving to 8 percent lowers the payment by $212.57 a month and saves $76,527 of interest.
Would an extra $100 a month help at 9 percent?
It would end the loan 4 years 10 months sooner and save $110,616 of interest on the example loan.
How does a half point change the payment on $300,000 at 9 percent?
A half point higher raises the payment to $2,522.56. A half point lower reduces it to $2,306.74.
Is a lower rate than 9 percent always better?
Not if it comes with fees or points. A rate one point lower saves $212.57 a month here. Divide the upfront cost by that saving to see how many months it takes to break even.
Related calculators
This page is for education only and is not financial or tax advice.