Monthly payment on a $1,000,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $1,000,000 mortgage costs $6,321/month; a 15-year loan costs $8,711/month but saves $707,452 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $5,368 | $7,908 | $932,558 | $423,429 |
| 5.50% | $5,678 | $8,171 | $1,044,040 | $470,750 |
| 6.00% | $5,996 | $8,439 | $1,158,382 | $518,942 |
| 6.25% | $6,157 | $8,574 | $1,216,582 | $543,361 |
| 6.50% | $6,321 | $8,711 | $1,275,445 | $567,993 |
| 6.75% | $6,486 | $8,849 | $1,334,953 | $592,837 |
| 7.00% | $6,653 | $8,988 | $1,395,089 | $617,891 |
| 7.25% | $6,822 | $9,129 | $1,455,835 | $643,153 |
| 7.50% | $6,992 | $9,270 | $1,517,172 | $668,622 |
| 8.00% | $7,338 | $9,557 | $1,641,552 | $720,174 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $11,177 | $64,671 | $988,823 |
| 2 | $11,926 | $63,922 | $976,897 |
| 3 | $12,725 | $63,124 | $964,172 |
| 4 | $13,577 | $62,271 | $950,596 |
| 5 | $14,486 | $61,362 | $936,110 |
Income needed
Using the common 28% front-end guideline and assuming roughly $1,250/month for tax and insurance, a homeowner would need a gross income of about $324,458/year at 6.5%.
As a rental
A $1,000,000 loan is 75% of a $1,333,333 purchase. To pass the 1% rule that property would need about $13,333/month in rent; for a DSCR of 1.25 on P&I plus ~$1,250 tax and insurance, rent of about $9,463/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.