How much is a mortgage on a $500,000 home?

Core Insights - The average purchase price of a single-family home is $414,300 as of November 2025, making a $500,000 home a reasonable option for larger houses or higher-cost areas [1] Mortgage Costs - The total cost of a mortgage on a $500,000 house varies significantly based on the loan term, with a 30-year fixed-rate mortgage costing approximately $997,461.86 over its lifetime, while a 15-year fixed-rate mortgage costs about $661,837.60 [8] - Monthly payments for a $500,000 mortgage depend on the mortgage type, interest rate, and term length, with a conventional mortgage at a 6.25% interest rate resulting in a monthly payment of approximately $2,463 for a well-qualified buyer making a 20% down payment [20] Mortgage Types - Conventional mortgages are the most common type, available from various lenders, while FHA loans offer more lenient qualification criteria and lower down payment requirements [7][9] - VA mortgages are available to eligible veterans and typically have the lowest interest rates among the three types [10][5] Additional Costs - Homeownership involves various short-term and long-term costs beyond the mortgage payment, including closing costs (2% to 5% of the loan amount), maintenance expenses, property taxes, and homeowners insurance [11][12] - Private mortgage insurance (PMI) may be required for conventional loans with less than a 20% down payment, costing between $150 to $350 monthly for a $500,000 mortgage [14] Income Requirements - The minimum income needed for a $500,000 mortgage is approximately $100,000, assuming a 30-year fixed mortgage with a 6.25% interest rate and 10% down payment, with lenders typically preferring a debt-to-income ratio of 36% or less [19][21]