Monthly payment on a $150,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $150,000 mortgage costs $948/month; a 15-year loan costs $1,307/month but saves $106,118 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $805 | $1,186 | $139,884 | $63,514 |
| 5.50% | $852 | $1,226 | $156,606 | $70,613 |
| 6.00% | $899 | $1,266 | $173,757 | $77,841 |
| 6.25% | $924 | $1,286 | $182,487 | $81,504 |
| 6.50% | $948 | $1,307 | $191,317 | $85,199 |
| 6.75% | $973 | $1,327 | $200,243 | $88,926 |
| 7.00% | $998 | $1,348 | $209,263 | $92,684 |
| 7.25% | $1,023 | $1,369 | $218,375 | $96,473 |
| 7.50% | $1,049 | $1,391 | $227,576 | $100,293 |
| 8.00% | $1,101 | $1,433 | $246,233 | $108,026 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $1,677 | $9,701 | $148,323 |
| 2 | $1,789 | $9,588 | $146,535 |
| 3 | $1,909 | $9,469 | $144,626 |
| 4 | $2,037 | $9,341 | $142,589 |
| 5 | $2,173 | $9,204 | $140,416 |
Income needed
Using the common 28% front-end guideline and assuming roughly $188/month for tax and insurance, a homeowner would need a gross income of about $48,669/year at 6.5%.
As a rental
A $150,000 loan is 75% of a $200,000 purchase. To pass the 1% rule that property would need about $2,000/month in rent; for a DSCR of 1.25 on P&I plus ~$188 tax and insurance, rent of about $1,420/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.