6% vs 7% Mortgage: What One Point Costs on a $300,000 Loan
One percentage point on a $300,000 30-year mortgage is about $197 a month and $71,012 in total interest. Payments at every rate, and three ways to pay less.
By the MoneyBackKit team · Updated October 27, 2026 · 5 min read
A mortgage rate that's one percentage point higher sounds small. On a $300,000 loan it isn't: it changes your monthly payment by about $197 and the total interest over 30 years by about $71,012. Here is exactly how much each rate costs, and the three things that cut the cost the most.
Monthly payment and total interest by rate
| Rate | Monthly payment (principal + interest) | Total interest over 30 years |
|---|---|---|
| 5% | $1,610 | $279,767 |
| 5.5% | $1,703 | $313,212 |
| 6% | $1,799 | $347,515 |
| 6.5% | $1,896 | $382,633 |
| 7% | $1,996 | $418,527 |
| 7.5% | $2,098 | $455,152 |
Total interest on a $300,000 loan (30 years)
At 6% you pay $1,799 a month and $347,515 in interest in total. At 7% it's $1,996 a month and $418,527 in interest. That's the price of one percentage point: $197 a month, every month, for 30 years.
Three ways to pay less interest
- A shorter loan. A 15-year loan usually has a lower rate and a much bigger payment. At 6.25% for 15 years the payment is $2,572 a month, but total interest falls to $163,008.
- Small extra payments. On a $300,000 loan at 7%, paying $200 more each month toward principal saves about $118,628 in interest and pays the loan off in about 22.9 years instead of 30.
- Compare lenders and refinance later. Get quotes from at least three lenders on the same day; the Loan Estimate form makes them easy to compare. If rates fall a lot later, refinancing can make sense, but closing costs often take a few years to earn back.
What the payment doesn't show
- Property tax and home insurance are often added to your monthly payment (escrow), and can add several hundred dollars.
- With less than 20% down you'll usually pay PMI until you owe less than 80% of the home's value (it must end automatically at 78% of the original value).
- Paying "points" to buy a lower rate only pays off if you keep the loan long enough. Divide the cost of the points by the monthly saving to see how many months that takes.