If you buy a $350,000 house with a $5,000 down payment, your...
Cori Arnold@iamcoriarnold
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Jan 27, 2026
~1 min read
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If you buy a $350,000 house with a $5,000 down payment, your mortgage is $345,000
At a 30-year term and a 5.75% rate, you'll pay $379,797 in interest alone.
That's a total of $724,797 in payback.
Below are simple ways to avoid paying so much interest:
At a 30-year term and a 5.75% rate, you'll pay $379,797 in interest alone.
That's a total of $724,797 in payback.
Below are simple ways to avoid paying so much interest:
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1. Make extra principal payments every month
- the lower your principal balance, the less interest you pay
- the lower your principal balance, the less interest you pay
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2. Get a 15 year term instead of a 30 year term
At 15 years, with the same terms ($345,000 mortgage and 5.75% rate)
You'll only pay $170,684 in interest
At 15 years, with the same terms ($345,000 mortgage and 5.75% rate)
You'll only pay $170,684 in interest
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3. Buy less house
Instead of spending $350,000 on a house, find one for $275,000 or $300,000
Lower balances equal lower interest expense
Instead of spending $350,000 on a house, find one for $275,000 or $300,000
Lower balances equal lower interest expense
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4. Save a bigger down payment
The more you can put down, the lower your mortgage will be, which in turn means lower interest
The more you can put down, the lower your mortgage will be, which in turn means lower interest