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Monthly costs for a mortgage on an $800,000 home

PublishedJul 1, 2025|Time to read min

    Quick insights

    • The cost of a monthly mortgage on an $800,000 home can be calculated with a standard formula, using a supplied (or estimated) interest rate and loan term.
    • There are many factors which may affect the monthly cost, including the size of your down payment and the rates and terms a lender presents in their offer.
    • Mortgage preapproval can help solidify your budget and demonstrate seriousness to sellers in a fast-paced market.

    Buying a home is a multi-step process that often starts with a simple question: how much house can I afford? Certain calculations can help you understand monthly costs for an $800,000 home and clarify your budget for the mortgage. We’ll also identify the steps it takes to get an $800,000 home, from assessing your finances to closing.

    Calculating the monthly costs of an $800,000 home mortgage loan

    Before you can calculate the monthly payment for a mortgage on an $800,000 home, you will need to know what the interest rate and loan terms are. Each monthly payment is split into principal and interest; principal repays the loan amount, and the interest represents the amount paid to the lender.

    Example calculation

    Now, we will examine a hypothetical mortgage payment, which has a full 30-year term and a fixed interest rate of 6.5%. Using the following calculation, we can estimate its monthly cost:

    M = P[ r(1+r)n ] / [ (1+r)n−1 ]

    • P represents the loan principal: $640,000 (assuming 20% down on an $800,000 home)
    • r is the monthly interest rate (annual divided by 12): 6.5% (in this example, a fixed rate)
    • n is the number of payments: 360, for instance (30 years multiplied by 12)

    In this example, the monthly principal and interest payment would be approximately $4,050. Bear in mind, this estimation does not account for additional costs like insurance and property taxes.

    To estimate costs, you will need to confirm local rates where you plan to buy your home and check with specific issuers. A specific mortgage calculator can help clarify what you can expect to pay each month.

    How a down payment can affect your monthly costs

    The loan principal is a main factor in the formula for a monthly mortgage payment. Most homebuyers will make a down payment instead of financing 100% of the home’s cost. On an $800,000 home, a 10% down payment would be $80,000, making the loan principal $720,000.

    Example: For a conventional 30-year fixed-rate mortgage at 6.5%, and the monthly payment to around $4,550. Most lenders typically require private mortgage insurance (PMI) for a 10% down payment.

    Additional costs to plan for when buying a home

    In addition to saving for a down payment, you may want to consider other costs which may be owed at the time of transaction. Borrowers may look for lenders with the lowest rates when shopping for a loan because that can help reduce the overall cost of the loan. A longer term (such as 30 years) can also reduce monthly payments; however, you may pay more in interest in the long-term. A good credit score and healthy debt-to-income ratio (DTI) can help you secure loans with favorable rates and the terms you want.

    Depending on the property and loan, here’s what you might expect:

    • Closing costs: Closing costs include an assortment of fees and other expenses that are due at closing, typically in cash. Closing costs generally amount to 2–5% of the home’s purchase price.ec-closing-costs-calculator For an $800,000 home, this would be $16,000–$40,000.
    • PMI: Homebuyers who put down less than 20% on their home with a conventional mortgage typically are required to pay PMI. PMI can sometimes be paid as a lump sum at closing, or with an upfront premium followed by monthly payments until the buyer reaches 20% equity.
    • Escrow payments: Depending on your loan and lender, you may be required to pay several months’ worth of costs relating to your new home into a dedicated escrow account. This could include payments to PMI, property taxes or prepaid interest, among other expenses.
    • Moving costs: How much you spend on moving largely depends on the distance of the move and what kinds of services you choose to hire to make things easier. Some homebuyers also find themselves paying for an old lease while moving into a new home, depending on timing.

    Total mortgage costs for an $800,000 home

    Without counting variable monthly and upfront costs, we can estimate the total costs of repaying a mortgage loan:

    30-year fixed-rate mortgage (20% down, 6.5% interest):

    • Total interest paid: $816,280
    • Total of 360 mortgage payments: $1,456,280

    15-year fixed-rate mortgage (20% down, 6.5% interest):

    • Total interest paid: $363,520
    • Total of 180 mortgage payments: $1,003,520

    How to get an $800,000 home in 5 steps

    If you’re in the process of reviewing your finances, you’re already on your way to securing a mortgage. When you’re satisfied with your financial situation, the next step will be to seek preapproval for a loan:

    1. Review your finances: Before taking steps toward a mortgage, it’s important to conduct your own assessment of where your finances are at. This can include estimating monthly costs, reviewing your credit score or calculating your DTI.
    2. Preapproval: Seeking preapproval from a lender can be helpful and illuminating on your journey to homeownership. The process requires you to submit financial documentation for a preliminary offer from a lender. Having preapproval can help you see a realistic figure relating to your purchase and give you insight into how the lender will be as a partner. Additionally, buyers with preapproval tend to be taken more seriously by sellers, as they have fewer steps to complete a transaction.
    3. Find your home: With your preapproved loan amount, you can begin searching for homes that fit your criteria. When you’ve identified a home in the right area, with the features that matter to you, you can make an offer. You can make an offer with or without the help of a real estate agent, although professional support may make things easier.
    4. Finalize your loan: If your offer is accepted, you can then take the steps to finalize your loan. Your lender may require you to submit additional documentation. It’s possible that the exact terms and rate will vary from your pre-approved amount. The lender is likely to require a formal appraisal of the home before finalizing the loan, as well.
    5. Closing day: Prior to closing on the home, you will be provided with a closing disclosure document which outlines all costs related to the purchase. On closing day, you will need to pay the upfront costs and sign the paperwork before the loan is funded and you receive the keys.

    Bottom line

    So, what is the payment on an $800,000 home? Well, the exact loan and property details will affect the costs of the mortgage. By now you understand that there are many factors which can affect the monthly payment and additional costs. Completing your own calculations, whether with the payment formula above or on a home affordability calculator, can help you understand how to budget for an $800,000 home.

    For assistance, consider reaching out to a Chase Home Lending Advisor who can talk you through your options.

    Take the first step and get preapprovedaffordability_hl000008

    Have questions? Connect with a home lending expert today!

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