What does a $500k mortgage cost? Monthly payment by rate

A $500,000 mortgage at 6.50% over 30 years costs $3,160/month in principal and interest and about $637,722 in total interest over the full term. Move the rate from 5.50% to 7.50% on the same loan and the payment swings from $2,839 to $3,496, a $657/month gap that adds up to $236,566 more in lifetime interest. This guide is for US and Canadian buyers sizing a loan near the half-million mark who want the payment and interest cost at common rate and term combinations before they talk to a lender.

The scenario modeled

The main tables assume a $500,000 loan balance on a US conventional fixed-rate mortgage with monthly payments and no mortgage insurance. In the calculator preset, that loan is modeled as 20% down on a $625,000 purchase. We hold the loan amount constant so you can see how rate and term alone move the payment. The calculator preset linked below opens three 30-year tabs at 5.50%, 6.50%, and 7.50% so you can compare those paths side by side.

The findings

Rate sensitivity dominates the monthly line item. On a 30-year $500,000 loan, each full percentage point from 5.50% to 7.50% adds roughly $330-$350/month and $115,000-$120,000 in lifetime interest. Shorter terms flip the trade-off: at 6.50%, the 15-year payment is about $1,196/month higher than the 30-year path, but total interest falls by about $353,725.

PITI note: The tables below cover principal and interest only, not the full principal, interest, taxes, and insurance (PITI) payment. For a $500,000 home, typical property taxes and homeowners insurance often add roughly $700-$1,200/month on top of principal and interest in many US markets, though the exact amount varies by county and carrier. Use the true monthly payment (PITI) guide to layer those costs on your own numbers.

When $500,000 is the purchase price

Down payment changes the loan you actually carry. At 6.50% over 30 years on a $500,000 US home, 5% down ($25,000) leaves a $475,000 loan with PMI modeled at 0.55% annual, for $3,220/month P&I plus $218/month PMI early in the term and $605,836 in total interest. Put 20% down ($100,000) and the loan drops to $400,000 with no PMI: $2,528/month P&I and $510,178 total interest. For a deeper comparison of 5%, 10%, and 20% paths, see how much down payment you really need. For the $400,000 loan tier, see our $400,000 mortgage payment guide.

US context

The CFPB notes that your monthly mortgage payment includes principal, interest, and often taxes and insurance when the lender sets up escrow. Shopping rate quotes on P&I alone understates what you will actually move from checking each month, which is why lenders qualify you on the full housing payment, not the loan payment in isolation.

Source: Consumer Financial Protection Bureau, "What's included in my monthly mortgage payment?" accessed June 2026. URL: https://www.consumerfinance.gov/ask-cfpb/what-is-escrow-on-a-mortgage-en-206/

Canadian context

If $500,000 is the purchase price and you put 5% down, the base mortgage is $475,000 before default insurance. CMHC charges a 4.00% premium on that balance, adding $19,000 to the loan you repay (total mortgage $494,000 before interest). That premium is capitalized into the loan, so your payment is sized on the insured balance, not the pre-insurance $475,000. See CMHC mortgage insurance explained for the full premium schedule.

When this applies - and when it doesn't

This applies when: you are comparing fixed-rate quotes on a loan near $500,000, you want a quick read on how 1-2 points of rate change moves the payment, or you are cross-shopping 15-year and 30-year terms at similar rates. Coastal US markets and higher-cost Canadian cities often land near this price point.

It does not apply when: you are using FHA, VA, or USDA programs with upfront fees rolled in, you need Canadian semi-annual compounding on an insured file, or your rate is adjustable. ARM and variable paths need a schedule model, not a flat rate table. Credit score, points, and lender fees also move the effective cost beyond what a rate grid shows.