Monthly payment on a $100,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $100,000 mortgage costs $632/month; a 15-year loan costs $871/month but saves $70,745 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $537 | $791 | $93,256 | $42,343 |
| 5.50% | $568 | $817 | $104,404 | $47,075 |
| 6.00% | $600 | $844 | $115,838 | $51,894 |
| 6.25% | $616 | $857 | $121,658 | $54,336 |
| 6.50% | $632 | $871 | $127,544 | $56,799 |
| 6.75% | $649 | $885 | $133,495 | $59,284 |
| 7.00% | $665 | $899 | $139,509 | $61,789 |
| 7.25% | $682 | $913 | $145,583 | $64,315 |
| 7.50% | $699 | $927 | $151,717 | $66,862 |
| 8.00% | $734 | $956 | $164,155 | $72,017 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $1,118 | $6,467 | $98,882 |
| 2 | $1,193 | $6,392 | $97,690 |
| 3 | $1,272 | $6,312 | $96,417 |
| 4 | $1,358 | $6,227 | $95,060 |
| 5 | $1,449 | $6,136 | $93,611 |
Income needed
Using the common 28% front-end guideline and assuming roughly $125/month for tax and insurance, a homeowner would need a gross income of about $32,446/year at 6.5%.
As a rental
A $100,000 loan is 75% of a $133,333 purchase. To pass the 1% rule that property would need about $1,333/month in rent; for a DSCR of 1.25 on P&I plus ~$125 tax and insurance, rent of about $946/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.