Home buying guide

Mortgage Payment on a $400,000 House

Estimate the payment on a $400,000 home with a sample down payment, rate, taxes, and insurance.

Worked example · educational estimate · no account required
Worked example

$400,000 home with $80,000 down

Principal & interest$1,970.30
Tax and insurance$550
Estimated monthly total$2,520.30

This example excludes HOA dues, mortgage insurance, closing costs, maintenance, utilities, and lender-specific escrow adjustments.

01

Build the payment in layers

Start with home price minus down payment to find the loan principal. The loan rate and term determine principal and interest. Then add realistic monthly estimates for property tax, homeowners insurance, mortgage insurance when required, and HOA dues.

  • Principal and interest stay predictable on a fixed-rate loan.
  • Taxes and insurance can change after purchase.
  • Closing costs affect cash needed upfront even when they are not part of the monthly payment.
02

Why two $400,000 homes can cost differently

Location affects property taxes and insurance. Home type can add association dues or specialized coverage. The same price can also produce a different payment when the buyer changes the down payment, loan program, credit profile, or rate-lock timing.

03

Compare with a buffer

Use the calculator to test the quoted rate, then test a higher tax or insurance amount. A home budget should leave room for maintenance and normal changes in ownership costs rather than relying on the lowest possible estimate.

Questions, answered

Frequently asked questions

Does this include PMI?

No. The example uses 20% down and does not add private mortgage insurance. Loan requirements vary.

Are taxes based on the purchase price?

Not necessarily. Tax assessment rules vary by location, so use the latest estimate from the local taxing authority or property documents.