Monthly payment, true cost (APR), fixed or variable rate risk and how much you can afford, with the rules that apply in the US.
Quick answerIn the US, a mortgage of 320,000 USD over 30 years at 7.4% costs about 2,215.62 USD per month. You pay 477,622 USD in interest over the term. Always compare offers by the APR, not only by the interest rate.
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PrincipalInterestFees
If the interest rate rises
Repayment by year
Popular questions
How much will my monthly loan payment be in the US?
For a mortgage of 320,000 USD over 30 years at 7.4%, the monthly payment is about 2,215.62 USD. Change the amount, term and rate in the calculator above to see your own payment.
What is the APR and why is it higher than the interest rate?
The APR includes fees and required costs on top of interest. In our example with typical fees the APR is 7.5% while the nominal rate is 7.4%. Compare loans by the APR and by the total amount you repay.
Fixed or variable rate: which is better in the US?
Adjustable-rate mortgages (ARMs) in the US are fixed for 5, 7 or 10 years and then follow SOFR plus a margin, with caps on each change. With the Fed funds rate at 3.75% to 4.00%, most buyers still choose a 30 year fixed. If rates rose by 2 points, the payment in our example would go up to 2,667.42 USD. A fixed rate protects you from that risk, a variable rate can be cheaper when rates fall.
How much can I borrow in the US?
US lenders usually want your total monthly debt payments, including the new mortgage, to stay below about 36% to 43% of gross monthly income. With less than 20% down you will usually pay PMI. Enter your gross monthly income to check your ratio.
Loans in the US right now
Most US home loans are 30 year fixed-rate mortgages, so the payment never changes. Every Loan Estimate shows the interest rate and the APR, which adds points and lender fees spread over the term. Your full monthly cost also includes property tax, homeowners insurance and, with less than 20% down, private mortgage insurance (PMI).
30 year fixed mortgages average about 7.40% and 15 year fixed about 6.71% in October 2026.
The Fed funds target range is 3.75% to 4.00%, and the prime rate is 7.00%.
Personal loans average about 11.90% APR and new car loans about 7.54%.
Lenders usually want a total debt-to-income ratio of 36% to 43% of gross income. Under Regulation Z the APR is a nominal rate (monthly rate x 12).
Understand your loan before you sign
1
What the APR tells you
The nominal interest rate only covers interest. The APR adds the fees and costs you must pay to get the loan, such as processing fees, account fees and required insurance, and turns everything into one yearly percentage. Two loans with the same interest rate can have very different APR. When you compare offers for the same amount and term, the lower APR is usually the cheaper loan.
2
Fixed or variable rate
A fixed rate keeps your payment the same for an agreed period, so you know exactly what you pay. A variable rate is a reference rate (for example Euribor) plus the bank's margin. It is often lower at the start, but your payment rises when the reference rate rises. Use the stress test above to see your payment if rates go up by 1, 2 or 3 points, and only choose variable if you could still pay that.
3
Equal payments or equal principal
With equal payments (annuity) the monthly amount stays the same, and at the start most of it is interest. With equal principal the first payments are higher but fall every month, and you pay less interest in total. Switch the repayment option in the calculator to see the difference.
4
The full cost of borrowing
Look beyond the monthly payment. Add up interest, upfront fees, monthly account and insurance costs, valuation and notary costs. A longer term lowers the payment but increases the total interest a lot. The line "cost per 100 borrowed" shows how much you pay for every 100 you borrow.
5
Early repayment
Paying off part of the loan early saves interest. Many countries limit what banks may charge for it, and variable-rate loans can often be repaid without a fee. Read the early repayment clause before you sign.
Checklist before you sign
Compare at least three offers for the same amount and term.
Compare the APR and the total amount to repay, not only the interest rate.
Check what happens to a variable rate if the reference rate rises by 2 to 3 points.
Keep your monthly payments well below the affordability limit and keep savings for emergencies.
Ask which insurance is mandatory and how much it costs.
Read the early repayment terms and any fees for changing the loan.
Example payments
Typical mortgage at today's average rate, equal monthly payments, without fees. Interest rate: 7.4%.
Amount
Term (years)
Monthly payment
Total interest
250,000 USD
30
1,730.95 USD
373,142 USD
320,000 USD
30
2,215.62 USD
477,622 USD
450,000 USD
15
4,146.02 USD
296,284 USD
Frequently asked questions
Can I repay my loan early in the US?
Usually yes. Most US mortgages have no prepayment penalty, and qualified mortgages can only charge one in the first 3 years. Extra payments go straight to principal and cut your total interest.
What interest rates are typical in the US right now?
In October 2026 30 year fixed mortgages in the US average about 7.40%, and 15 year fixed about 6.71%. Personal loans average about 11.90% APR and new car loans about 7.54%.
Is this an official loan offer?
No. It is an educational calculator. Your bank sets the final rate and costs. Use the results to understand and compare offers, and ask for the official pre-contract information before signing.
Sources and disclaimer
This page is educational. Rates are examples based on central bank statistics and published offers in October 2026, and your bank will price your loan individually. Always compare the official offer document (ESIS or standard information form) before you sign.