250 000 Mortgage Calculator – Loan calculator

Reviewed by David Chen, CFA | Mortgage Finance Specialist | Last Updated: October 2023

Looking to borrow $250k? Use this 250 000 mortgage calculator to estimate your monthly payments based on current interest rates, loan terms, and potential down payment scenarios.

250,000 Mortgage Calculator

Loan Amount (Principal)

Please enter a valid loan amount.

Annual Interest Rate (r)

Please enter a valid interest rate.

Loan Term (n)

Years

Please enter a valid term (1-50 years).

Estimated Monthly Payment

$0.00

*Principal & Interest Only

250 000 Mortgage Calculator Formula

The calculation uses the standard amortization formula to determine the monthly payment required to pay off a $250,000 loan over a set period:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

Source: Investopedia: Mortgage Basics

Variables

M: Monthly Payment (Principal & Interest).
P: Principal Loan Amount (e.g., $250,000).
i: Monthly Interest Rate (Annual Rate / 12).
n: Total Number of Payments (Years × 12).

Related Calculators

What is a 250 000 Mortgage Calculator?

A 250 000 mortgage calculator is a specific financial tool pre-configured or optimized for users looking to borrow exactly or around $250,000. This loan amount is a common benchmark for first-time homebuyers in many markets.

It helps you visualize the monthly commitment for this specific principal amount, allowing you to adjust the interest rate and term length to see how they impact your budget.

How to Calculate 250 000 Mortgage Calculator (Example)

Let’s calculate the payment for a $250,000 loan at 6.5% interest for 30 years:

Principal (P): $250,000.
Rate (r): 6.5%. Monthly Rate (i) = 0.065 / 12 = 0.005416.
Term (n): 30 Years × 12 = 360 Months.
Calculation:
- Numerator: 0.005416 × (1.005416)^360 ≈ 0.0379.
- Denominator: (1.005416)^360 – 1 ≈ 6.02.
- Monthly Payment: ~$1,580.17.

Frequently Asked Questions (FAQ)

How much income do I need for a 250k mortgage?

Lenders typically look for a Debt-to-Income (DTI) ratio below 36%. If your monthly payment (including taxes/insurance) is around $2,000, you would generally need a gross monthly income of at least $5,500 – $6,000, assuming no other major debts.

What is the down payment for a 250k house?

If the loan is $250,000, the home price depends on your down payment. For a $250k house: 3% down is $7,500; 20% down is $50,000.

Does this include property taxes?

This specific calculator estimates Principal and Interest only. You should add property taxes (approx. 1.1% annually) and insurance to get your full PITI payment.

Can I pay off a 250k mortgage early?

Yes. Making even one extra payment per year or rounding up your monthly payment can shave years off your loan term and save thousands in interest.