Conventional Loan
Conventional Loan Monthly Payment Example for Virginia Buyers
Reviewed by the HomeMath editorial team Updated 2026-08-06
Key takeaways
- Example principal & interest on a $300,000 loan at 6% for 30 years: about $1,798 per month.
- Adding estimated taxes ($200) and insurance ($100) brings total monthly cost to roughly $2,098.
- A 20% down payment ($60,000) eliminates private mortgage insurance; a 5% down payment adds about $150 PMI per month.
Example Loan Scenario
Imagine a Virginia homebuyer who purchases a house for $360,000 and makes a 20% down payment of $60,000. The borrower finances the remaining $300,000 with a conventional 30‑year fixed‑rate mortgage. For illustration, we use a 6% interest rate, which is a typical rate used in examples but not a current market rate.
Breakdown of Monthly Costs
- Principal & Interest (P&I): Approximately $1,798 per month. This amount repays the loan balance and covers the interest accrued each month.
- Property Taxes: Roughly $200 per month, based on local tax rates that vary by county and city in Virginia. Taxes are often collected in an escrow account and paid to the jurisdiction on the homeowner’s behalf.
- Homeowners Insurance: About $100 per month, protecting the structure and personal property against damage or loss.
- Private Mortgage Insurance (PMI): Not required with a 20% down payment. If the buyer puts down only 5% ($18,000), an estimated $150 per month in PMI would be added until the loan-to-value ratio drops below 80%.
Why Virginia Buyers Might See Different Numbers
Virginia’s property taxes are assessed and collected at the county or city level, so rates can differ significantly across the state. Additionally, many Virginia closings involve attorneys or title‑company representatives who handle the escrow of taxes and insurance, which can affect how monthly payments are presented. First‑time buyers may also qualify for state‑run assistance programs such as Virginia Housing, which can provide down‑payment help or favorable loan terms, potentially lowering the monthly outlay.
This is general information and not personalized advice. Consult a qualified mortgage professional to understand how these figures apply to your specific situation.
FAQ
Can I get a conventional loan with less than a 3% down payment?
Some lenders offer conventional loans with as little as 3% down, but borrowers will usually need to meet stricter credit requirements and will pay private mortgage insurance until enough equity is built.
How does private mortgage insurance (PMI) affect my monthly payment?
PMI is an extra monthly charge that protects the lender when the borrower’s equity is below 20%. It is typically calculated as a percentage of the loan amount and can add $50–$200 or more to the payment until the loan balance falls below the 80% loan‑to‑value threshold.
Do I have to escrow property taxes and homeowners insurance in Virginia?
Escrowing taxes and insurance is common but not mandatory. Lenders often require escrow to ensure these obligations are paid on time, especially for conventional loans with lower down payments.
What impact do homeowner association (HOA) fees have on my mortgage payment?
HOA fees are separate from the mortgage and are paid directly to the association. However, lenders may consider them when evaluating your debt‑to‑income ratio, which can affect loan eligibility.
Are there Virginia‑specific programs that can lower my monthly payment?
Virginia Housing offers down‑payment assistance and mortgage credit certificates that can reduce the amount of interest you pay, potentially lowering your monthly payment. Eligibility varies based on income, purchase price, and other factors.
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