A $500,000 mortgage at the current average rate of about 6.25%, per Freddie Mac, costs $3,079 per month for principal and interest. Buyers are often shocked to find out how much interest they’ll pay over the life of the loan, and how slowly they build equity because of it. Also surprising are the additional expenses rolled into their payments that can increase the payments by hundreds of dollars or more per month. How Much a $500,000 Mortgage Loan Really Costs A $500,000 mortgage with a 6.25% interest r ...

A cool half-million dollars might seem like a massive number, but here’s a fun fact: When it comes to home prices, it’s not that far off base. As of November 2025, the average purchase price of a single-family home was $414,300, according to the Federal Reserve Bank of St. Louis. A $500,000 home isn’t far-fetched if you need a larger house or live in a higher-cost-of-living area. If this sounds like your area, here’s how the math breaks down and how to plan for a mortgage on a $500,000 home. What is the ...