![How Much Is a $350,000 Mortgage Per Month in 2026? [Complete Payment Guide]](https://cdn.sanity.io/images/z7qa205f/production/62909f36ba59c623b94a54916130ec701e1783d4-2448x720.png?w=1224&q=100&auto=format)
Okay, so I know this sweet couple came who's been house hunting for months. They found their dream home, got preapproved for $350,000, and then — here's the thing — they were genuinely shocked when they saw the full monthly payment breakdown. Not just shocked, more like panicked. They'd been using basic online calculators that only showed principal and interest, completely forgetting about taxes and insurance.
Let me simplify this for you so you don't end up in that same situation. When you're looking at a $350,000 mortgage in 2025, you need the complete picture, not just the pretty number that makes you feel good. Think of it like this: if someone asked you how much your car costs per month, you wouldn't just say the loan payment and ignore insurance and gas, right? Same concept here.
According to data from the Federal Reserve Bank of St. Louis, the median home sales price in the United States sits at $410,800 as of the second quarter of 2025. That means a $350,000 mortgage actually represents a pretty common loan amount for many Americans — you're not alone in figuring this out.
What's Your Actual Monthly Payment on a $350,000 Mortgage?
The answer depends on three big factors that work together, and honestly, this is where it gets interesting because even small changes make a huge difference over time.
As of November 11, 2025, Zillow reports the average 30-year fixed mortgage rate at 6.12%, while 15-year fixed mortgages average 5.50%. But your actual rate could be higher or lower depending on your credit score and financial situation.
Here's what your monthly payment looks like at different interest rates for a $350,000 mortgage (this is just principal and interest — we'll add the other stuff in a minute).
Wait, let me clarify that point about 15-year mortgages. Yeah, the monthly payment is higher — sometimes $700 to $900 more than a 30-year loan. But here's the kicker: you'll save approximately $300,000 in interest over the life of the loan. Let that sink in for a second. Three hundred thousand dollars.
This is where clients always get that "oh crap" moment when they're sitting in my office. Your actual housing payment includes way more than just the mortgage.
According to the National Association of REALTORS®s released in 2025, property taxes and homeowners insurance typically add about 1% to 1.5% of the home's value annually. For a home with a $350,000 mortgage, let's say the home costs around $437,500 if you put 20% down, that's roughly $4,375 to $6,563 per year or $365 to $547 per month.
If you're putting down less than 20%, you'll also pay Private Mortgage Insurance or PMI. The Urban Institute reported in 2024 that PMI typically costs between 0.5% and 1.5% of the loan amount annually. On a $350,000 loan, that's $1,750 to $5,250 per year or approximately $146 to $438 per month.
Here's a realistic monthly budget breakdown for November 2025.
Let's use a 30-year fixed mortgage at 6.12% with 10% down, which equals $43,750 as your down payment. This means you're financing $350,000:
And that doesn't even include HOA fees if your property has them, or utilities, or maintenance costs. I'm pretty sure, but let me double-check... yeah, the maintenance rule of thumb is still to set aside 1% of your home's value annually for repairs and upkeep.
The mortgage rate environment has been, well, interesting this year. After peaking above 7% in January 2025, rates have gradually declined throughout the year. The Federal Reserve issued rate cuts in September and October 2025, bringing the federal funds rate to 3.75% to 4.0% according to reporting from CBS News.
But here's what nobody tells you: mortgage rates don't move in lockstep with the Fed's rate decisions. Actually, on second thought, let me rephrase that. They're influenced by the Fed, but they respond more directly to the 10-year Treasury yield and overall bond market conditions.
According to mortgage rate forecasts from Fannie Mae published in October 2025, experts anticipate rates settling around 6.3% by the end of 2025, with potential dips to 6.2% in early 2026. The Mortgage Bankers Association has a slightly more conservative outlook, projecting rates to average 6.4% in Q4 2025 and holding steady into Q1 2026.
Let's say you lock in a rate today at 6.12% versus waiting and potentially getting 6.3% — that's only an $18 difference per month on a $350,000 loan. Not huge, right? But over 30 years, that's $6,480. Or you could get lucky and catch a dip to 6.0%, saving yourself $25 per month, which adds up to $9,000 over the loan's life.
At AmeriSave, we offer rate lock options that protect you from rate increases while your loan processes. This gives you certainty in an uncertain market — you don't have to worry about rates jumping while you're finalizing your home purchase.
Okay, I hear this question at least three times a week: "Do I really need to put 20% down?" Short answer? No. But let's talk about what happens either way, because this decision impacts your monthly payment significantly.
If you can manage a 20% down payment on a home that requires a $350,000 mortgage—that's $87,500 assuming the home costs $437,500—here's what you gain:
Using our earlier example, dropping PMI alone brings your monthly payment from $3,071 down to $2,779. That's almost $300 per month back in your budget.
But here's the reality—saving up $87,500 takes time, and sometimes the right home won't wait. According to the Census Bureau, the median down payment for first-time home buyers is significantly lower than 20%.
At AmeriSave, we offer programs with as little as 3% to 5% down for qualifying buyers. With a 5% down payment ($21,875 on a $437,500 home), you'd finance $415,625 instead of $350,000, which increases your monthly payment but gets you into homeownership sooner.
That's about $491 more per month than the 20% down scenario. The textbook answer is to save up 20% if possible, but really, you need to consider opportunity cost. Are home prices and rates going up faster than you can save? Then waiting might actually cost you more.
This is huge, and I mean HUGE. Your credit score doesn't just impact whether you get approved — it dramatically affects the interest rate you're offered.
According to data from myFICO, your credit score has a significant impact on the mortgage rate you'll qualify for. On a $350,000 mortgage at current 2025 rates, borrowers with credit scores of 760 or higher might secure rates around 6.12%, while those with scores between 620-639 could face rates closer to 7.62% or higher.
Let's put some real numbers on this. The difference between a 6.12% rate and a 7.12% rate on a $350,000 mortgage is:
I know a borrower who spent three months improving their credit score from 665 to 710. That effort saved them approximately $150 per month on their mortgage payment. Completely worth it.
Not all mortgages are created equal, and choosing the right type can significantly impact both your monthly payment and long-term costs.
These are your standard mortgages not backed by the government. They typically require:
Monthly payment example for $350,000 at 6.12% for 30 years: $2,123 (principal & interest only)
The Federal Housing Administration (FHA) insures these loans, making them accessible for buyers with lower credit scores or smaller down payments.
The catch with FHA loans? That mortgage insurance doesn't automatically drop off when you hit 20% equity like PMI does. For loans with less than 10% down, you're stuck with it for the life of the loan. Between you and me, that's why many borrowers refinance to a conventional loan once they have enough equity.
If you're a veteran or active military, VA loans offer some of the best terms available. The Department of Veterans Affairs guarantees these loans in 2025, which feature:
Wait, let me recalculate including the funding fee if financed. With a 2.15% funding fee on $350,000, that's $7,525, so your actual loan amount is $357,525. At 5.87%, that's $2,116 per month. Still significantly lower than conventional or FHA options.
For homes in eligible rural and suburban areas, USDA loans through the US Department of Agriculture in 2025 offer:
This is something I wish more buyers understood before they signed on the dotted line. Your mortgage payment is just one piece of your monthly housing cost.
Property taxes vary wildly depending on where you live. According to Tax Foundation data from 2024, effective property tax rates range from 0.28% in Hawaii to 2.08% in New Jersey.
That's a $547 monthly difference between living in a low-tax versus high-tax state. Oops, I meant $547, not $500. Math matters here.
The Insurance Information Institute reported in 2024 that the national average homeowners insurance premium is approximately $2,377 annually or about $198 per month.
In my MSW program, we learned about how financial stress compounds when people don't budget for these additional costs. It's not just about making the payment — it's about feeling secure and stable in your home.
Here's a rule I live by and share with every client: budget 1% of your home's value annually for maintenance and repairs. For a $437,500 home, that's $4,375 per year or $365 per month.
Don't quote me on this, but I'd say half the financial stress I see in borrowers comes from unexpected home repairs they didn't budget for.
If you're buying a condo or in a planned community, Homeowners Association fees add another layer. According to data from HomeAdvisor released in 2024, HOA fees average $200 to $400 monthly but can exceed $1,000 in luxury communities or high-rise buildings.
How Much Income Do You Need for a $350,000 Mortgage?
Lenders typically use the 28/36 rule when evaluating mortgage applications, though this isn't a hard requirement in all cases.
But wait, that's just for housing. If you have other debts, you need even more income. Let's say you have $500 monthly in other debt payments:
The good news? At AmeriSave, we work with various loan programs that have different qualification requirements. Some programs are more flexible on debt-to-income ratios, especially for borrowers with strong credit scores and significant assets.
According to Federal Reserve data from 2024, the median household income in the United States is $80,610. This means a $350,000 mortgage is stretching the budget for a median-income household, especially in the current rate environment.
Okay, so you've seen the numbers and maybe you're thinking, "That's more than I was hoping for." Don't panic. There are legitimate strategies to bring that monthly payment down.
Every 20-point improvement in your credit score can potentially lower your rate by 0.1% to 0.2%.
Here's what actually works:
Buying discount points means paying upfront to lower your interest rate. Each point costs 1% of your loan amount and typically reduces your rate by 0.25%.
If you plan to stay in the home longer than the break-even period, points can make sense. If not, skip them.
Don't just accept the first insurance quote. According to Consumer Federation of America research from 2024, shopping around for homeowners insurance can save you 20% to 30% on premiums.
For property taxes, look into homestead exemptions and senior exemptions if applicable in your state. Some states also offer property tax freezes for certain qualifying homeowners.
Many states and localities offer down payment assistance programs for first-time buyers.
According to the National Council of State Housing Agencies in 2025, these programs can provide:
Check your state housing finance agency's website for available programs.
The housing market in late 2025 is showing interesting patterns. According to the National Association of REALTORS®s in 2025, median home prices hit $435,300 in June 2025, marking the 24th consecutive month of annual price growth.
But home sales have dropped to their lowest sustained levels since the early 2010s. Why? It's a combination of factors:
The median price-to-income ratio has climbed significantly according to Federal Reserve data, with households now paying approximately 5 times their annual income for a home compared to about 3.5 times in the mid-1980s. According to Realtor.com research released in 2025, the typical household now needs to spend about 44.6% of income to afford a median-priced home, far above the traditional 30% guideline.
Home prices vary dramatically by location across the United States. According to data from the Federal Reserve Bank of St. Louis, the median home sales price reached $410,800 in the second quarter of 2025, but regional differences are substantial.
A $350,000 mortgage might buy you a starter home in San Francisco but a luxury property in Kentucky. Your monthly property tax bill could be $150 in one state and $700 in another.
Should You Wait for Lower Rates?
This is probably the question I get most often right now. "Casey, should I wait until rates drop to 5.5%?"
Here's my honest answer: maybe rates drop, maybe they don't. According to mortgage forecasts from industry experts, we might see rates settle in the low 6% range by early 2026, but they're not expected to fall dramatically below that.
Let's say you wait six months hoping rates drop from 6.12% to 5.75%. But during that time, home prices increase by 2% (which has been typical according to NAR data):
You save $40 per month but need an extra $8,750 down payment. Was waiting worth it? Probably not.
The strategy that makes more sense: buy when you find the right home at a price you can afford, then refinance later if rates drop significantly. At AmeriSave, we make refinancing straightforward, and you can always reassess your options as market conditions change.
Understanding how your mortgage payment breaks down over time is kind of mind-blowing. In the early years, the majority of your payment goes toward interest, not principal.
$350,000 Mortgage at 6.50% for 30 Years: First 5 Years
Year
Starting Balance
Interest Paid
Principal Paid
Ending Balance
1
$350,000
$22,635
$3,912
$346,088
2
$346,088
$22,373
$4,174
$341,914
3
$341,914
$22,093
$4,454
$337,460
4
$337,460
$21,795
$4,752
$332,708
5
$332,708
$21,477
$5,070
$327,638
Notice that in Year 1, you pay $22,635 in interest but only reduce your loan balance by $3,912. That's an 85% interest to 15% principal split. By Year 5, you've paid $110,373 toward your mortgage but only reduced your balance by $22,362.
This is why making extra principal payments early in the loan has such a powerful impact. An extra $100 per month in Year 1 saves you approximately $38,000 in interest over the life of a 30-year loan.
15-Year vs. 30-Year: The Interest Comparison
The 15-year loan costs $741 more per month but saves you $264,780 in interest. That's a paid-off mortgage in half the time and enough saved interest to fund your retirement or your kids' college education.
When you apply for a $350,000 mortgage, lenders evaluate several factors beyond just your income.
But here's the thing — meeting the minimum doesn't mean you'll get the best rate. The better your score, the better your terms.
Beyond your down payment, expect to pay closing costs. The Consumer Financial Protection Bureau reports that closing costs typically range from 2% to 5% of the loan amount.
On a $350,000 mortgage, that's $7,000 to $17,500 in closing costs, including...
Some of these costs are negotiable or can be reduced by shopping around. Title insurance rates vary by company, and you can often negotiate origination fees.
Life Situations: When Does a $350,000 Mortgage Make Sense?
Situation: You're 28, earn $125,000 annually, have $50,000 saved, credit score 720.
Recommendation: A $350,000 mortgage is definitely within reach, though you'll want to be thoughtful about choosing 15 vs. 30-year terms. With 10% down plus closing costs, you'd have enough saved. The monthly payment of around $3,100 (including taxes, insurance, and PMI) represents about 30% of your gross income, which is manageable but leaves less cushion than ideal for a single income.
Strategy: Consider a 30-year fixed for lower monthly payments, build up an emergency fund quickly after closing, and make extra principal payments when bonuses come in. Once you hit 20% equity, refinance to drop PMI.
Situation: Combined income of $150,000, three kids, need more space, have $80,000 for down payment, credit scores around 740.
Recommendation: A $350,000 mortgage works well here. With 20% down, you avoid PMI and keep the monthly payment around $2,800 (including taxes and insurance). This represents about 22% of gross income, leaving plenty of budget room for kid activities, college savings, and unexpected expenses.
Strategy: Focus on a stable 30-year fixed rate that keeps your housing costs predictable. With three kids, flexibility in your budget matters more than racing to pay off the mortgage.
Situation: You're 58, selling your longtime home for $600,000, buying a smaller place for $450,000, want to keep some proceeds for retirement, combined income $180,000, excellent credit.
Recommendation: Interesting scenario. You could easily pay cash or put 40-50% down and have a very small mortgage. But with rates under 7% and the mortgage interest deduction, taking a $350,000 mortgage might make sense if you can earn better returns investing that money elsewhere.
Strategy: Consider a 15-year mortgage at a lower rate, allowing you to be mortgage-free by retirement. Or, if you have solid investment returns, a 30-year gives you flexibility and liquidity. At AmeriSave, we help you model different scenarios to see what makes most financial sense for your specific situation.
Situation: Own a consulting business, income averages $160,000 but fluctuates, $90,000 saved, credit score 780.
Recommendation: A $350,000 mortgage is doable, but documentation will be key. Lenders typically average your last two years of tax returns for self-employed borrowers. Make sure your returns show consistent or growing income.
Strategy: Work with a lender experienced in self-employed borrowers. At AmeriSave, we understand how to properly calculate self-employment income and can help you present your application in the strongest light. Consider a slightly larger down payment (25-30%) to offset any income variability concerns lenders might have.
Once you have your mortgage, refinancing becomes an option if rates drop or your financial situation improves.
According to Freddie Mac research from 2024, refinancing typically makes sense when you can:
Example refinance scenario:
Current mortgage: $350,000 at 6.50% (30 years) New mortgage: $340,000 remaining balance at 5.75% (30 years new term) Closing costs: $6,800 (2% of loan amount)
Monthly savings: $2,212 (old) — $1,984 (new) = $228 Break-even: $6,800 ÷ $228 = 30 months
If you plan to stay more than 2.5 years, this refinance makes sense. If you're moving sooner, skip it.
AmeriSave makes the refinance process straightforward with online applications and quick processing times. You can check your refinance options without impacting your credit score.
What If You Need More or Less Than $350,000?
The same principles apply regardless of loan amount, but the impacts scale proportionally.
Every $50,000 in loan amount changes your monthly payment by about $303 in principal and interest, plus proportional changes in taxes, insurance, and PMI.
If $350,000 is below your target, the same process scales up. Just remember that lenders have loan limits:
Let's bring this all together. A $350,000 mortgage in November 2025 typically means...
Your credit score, down payment, loan type, and the state of the market all affect the rate you get. Even a 0.5% difference in the rate makes a big difference in your monthly payment and the total interest you pay over the life of the loan.
This is how you should think about it: buying a house is probably the biggest money decision you'll ever make. Getting the mortgage part right will help you succeed. Every month is stressful if you get it wrong.
We at AmeriSave help you sort through all of these factors to find the mortgage that works best for you. Our team will help you find the right solution, whether you're a first-time buyer trying to figure out what you can afford or a move-up buyer with more than one property.
If you got a 30-year fixed mortgage at the average rate of 6.12% in November 2025, your monthly payment for principal and interest would be about $2,123. This is only a part of your total housing payment, though. Your total monthly payment usually falls between $2,800 and $3,300, depending on where you live and how much you put down. This includes property taxes, homeowners insurance, and private mortgage insurance (if you put down less than 20%). The 15-year mortgage option at 5.50% has a higher monthly payment of about $2,860 for principal and interest only, but you'll pay off the loan faster and save a lot of money on interest over the life of the loan. Your credit score, down payment, loan type, and the offers from different lenders will all affect your actual rate and payment.
Most lenders want your housing payment to be no more than 28% of your gross monthly income and your total debt payments to be no more than 36%. To meet the 28% housing ratio, you would need to make about $132,000 a year before taxes and other expenses on a $350,000 mortgage with a realistic monthly payment of $3,071 (including principal, interest, taxes, insurance, and PMI). If you have other monthly debts, like car payments or student loans, you'll need to make even more money to meet the 36% total debt ratio. But these ratios aren't set in stone for all loan programs. FHA loans may allow higher debt-to-income ratios if the borrower has good credit or a lot of cash on hand. VA loans don't have a limit on the debt-to-income ratio. Instead, they use a calculation called residual income. If you work with a lender who has been around for a while, they can help you figure out which programs might work for your income and debt.
Your financial goals and cash flow situation will determine whether you should get a 15-year or 30-year mortgage. If you take out a 30-year mortgage at 6.12%, you'll pay $2,123 a month in principal and interest, and the loan will cost you about $413,280 in interest over its life. With a typical lower rate of 5.50%, a 15-year mortgage costs $2,860 a month and only $164,800 in interest, which saves you about $248,480 in interest payments. If you have a steady income, few other debts, and want to quickly build equity while saving a lot of money on interest, the 15-year option is a good choice. The 30-year loan gives you more freedom in your monthly budget, so it's better for families with kids, single-income households, or anyone who wants lower required payments but still wants the option to pay extra toward the principal when they can. Many borrowers choose the 30-year term because it has lower payments. They then make extra principal payments to effectively shorten the loan term without having to pay the higher required payment of a 15-year mortgage.
The minimum credit score needed for different types of loans is very different, and just because you meet the minimum doesn't mean you'll get the best interest rate. Most lenders want to see a credit score of 680 or higher for better terms, but a credit score of 620 is the minimum for a conventional loan. With a 3.5% down payment, FHA loans let you have a credit score as low as 580. With a 10% down payment, you can have a score between 500 and 579. The Department of Veterans Affairs doesn't set a minimum credit score for VA loans, but most lenders do. For streamlined processing, USDA loans usually need a minimum credit score of 640. Your credit score has a big effect on your interest rate, even if you meet the minimum requirements. A borrower with a credit score of 760 or higher might get a rate that is 0.5% to 1.5% lower than someone with a score of 640. This could save them $100 to $300 a month on a $350,000 mortgage. If your credit score is below 700, spending several months improving it before applying can result in significant long-term savings.
If you make $100,000 a year, a $350,000 mortgage might be hard but possible, depending on your whole financial situation. If you make about $8,333 a month before taxes, a $3,000 housing payment would be 36% of your income, which is more than the recommended 28%. Some loan programs might still accept you even if your housing ratio is higher than average. This is only if you have few other debts, good credit, and a large down payment (20% or more). FHA loans are especially good for borrowers who are well-qualified because they let them have more leeway with their debt-to-income ratios. You should think carefully about whether spending 36% or more of your gross income on housing leaves enough room in your budget for other necessary costs, retirement savings, emergency funds, and discretionary spending. If you make $100,000 a year, a more conservative approach would be to get a mortgage of $280,000 to $300,000. This would keep your housing costs closer to 28% and give you more financial freedom. Think about whether a $350,000 mortgage would be easier for you if you made a larger down payment, added a co-borrower, or waited until your income went up.
The amount of money you need to put down on a $350,000 mortgage depends a lot on the type of loan and the lender. First-time home buyers can put down as little as 3% on a conventional loan, and other buyers can put down as little as 5%. However, if you put down less than 20%, you will need private mortgage insurance. If you have a credit score of 580 or higher, you can get an FHA loan with a down payment of 3.5%. This means that you would need to put down $15,225 on a $393,750 purchase price to get a loan for $350,000 (after the down payment). VA loans for veterans and active military members who meet the requirements don't require a down payment, so they are great options for qualified borrowers. USDA loans also let you buy homes in certain rural and suburban areas with no money down. Putting down 20% ($87,500 for a home that needs a $350,000 mortgage) helps you avoid mortgage insurance and usually gets you better interest rates. However, many successful home buyers use low down payment options to buy a home sooner rather than waiting years to save up for the usual 20% down payment. Your savings, how stable your income is, and the state of the local market will all affect what strategy is best for you.
If you put down less than 20% on a conventional loan, you have to pay for Private Mortgage Insurance (PMI). This usually costs between 0.5% and 1.5% of the loan amount each year. This means that if you have a $350,000 mortgage, your payment will go up by about $146 to $438 each month. Your PMI cost will vary based on your credit score (higher scores pay less), loan-to-value ratio (larger down payments pay less), and the payment plan you choose. Some lenders offer PMI that the borrower pays for with monthly payments, while others offer PMI that the lender pays for and charges a little more interest for. Once you have 22% equity through a combination of principal payments and home value appreciation, PMI on conventional loans ends automatically. You can also ask for it to end at 20% equity. This is very different from FHA mortgage insurance, which lasts for the life of the loan if you put down less than 10%. PMI raises your monthly payments, but it lets you buy a home with a smaller down payment, so you can buy sooner instead of saving for a full 20% down payment for years.
You should think about the current state of the market, your timeline, and how much risk you are willing to take before deciding whether to lock in your rate or wait. Mortgage rates have dropped from their January 2025 high of over 7% to about 6.12% for 30-year fixed mortgages as of November 2025. Fannie Mae and the Mortgage Bankers Association both say that rates may stay between 6.2% and 6.4% until early 2026. If the economy continues to cool, there is a small chance that they will go up. But it's hard to get the timing of the mortgage market just right because rates can change quickly based on the Federal Reserve's decisions, inflation reports, employment data, and changes in the bond market. A rate lock keeps your rate from going up while your loan is being processed, which usually takes 30 to 60 days. If you've found the right home and can afford the current payment, locking in a rate below 6.5% in late 2025 makes sense because rates were above 7% for most of 2023 and 2024. If rates go down a lot, you can always refinance later. If you wait for perfect rates, you might miss out on the right home or see prices go up faster than rates go down.
The total interest you pay on a $350,000 mortgage can be very different depending on the interest rate and loan term. If you take out a 30-year mortgage at 6.12%, you'll pay about $413,280 in interest over the life of the loan. That means you'll pay $763,280 in total to borrow $350,000. If you take out a 15-year mortgage at 5.50%, you'll pay a total of $514,800 in interest, which is about $248,480 less than the 30-year option. Changes in interest rates, even small ones, have a big effect on lifetime costs. A 30-year mortgage of $350,000 at 6.50% (just 0.38% higher) will cost you an extra $33,040 in interest, bringing the total to $446,320. When you make extra principal payments, you save money faster because each extra dollar you pay toward principal lowers the balance on which future interest accrues. If you make an extra $100 payment every month on a 30-year mortgage, you could save about $38,000 in interest and pay off the loan about 5 years sooner. These numbers show why looking for the best rate and making extra payments when you can save you a lot of money in the long run.
Closing costs for a $350,000 mortgage usually range from 2% to 5% of the loan amount, which is about $7,000 to $17,500. These costs include a lot of different fees, such as loan origination (usually 0.5% to 1% or $1,750 to $3,500), appraisal ($400 to $800), credit report ($30 to $50), title search and insurance ($1,200 to $4,400), settlement fees ($500 to $1,000), recording fees ($125 to $250), and survey costs ($300 to $500). If you get an FHA loan, you'll also have to pay upfront costs like property taxes (for 2 to 12 months), the first year's homeowners insurance premium, prepaid interest from closing to the end of the month, and upfront mortgage insurance (1.75% of the loan amount or $6,125). You can save money by shopping around because some costs, like origination fees and title insurance, are negotiable. In competitive markets, sellers may help pay for closing costs as a way to get buyers to agree to a deal. Some lenders offer no-closing-cost mortgages, which means they pay your closing costs in exchange for a higher interest rate. This can be a good option if you plan to refinance in a few years or need to save money for moving costs and home improvements.
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