Breaking down the $350K mortgage payment
On a $350,000 home with 20% down, you borrow $280,000. At 6.5%, the principal and interest portion is $1,770/month. Add property tax ($300/mo) and insurance ($100/mo), and you're at $2,215 total.
$350K mortgage by down payment amount
| Down Payment | Loan Amount | Monthly P&I | PMI | Total Monthly |
|---|---|---|---|---|
| 5% ($17,500) | $332,500 | $2,102 | ~$166 | $2,668 |
| 10% ($35,000) | $315,000 | $1,991 | ~$131 | $2,522 |
| 15% ($52,500) | $297,500 | $1,881 | ~$74 | $2,355 |
| 20% ($70,000) | $280,000 | $1,770 | $0 | $2,215 |
The difference between 5% and 20% down is $453/month — that's $5,436/year in savings, plus you avoid PMI entirely.
Income needed for a $350K home
Using the 28% housing ratio guideline, you need about $95,000/year in gross income to afford a $350K home with 20% down.