Monthly payment on a $300,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $300,000 mortgage costs $1,896/month; a 15-year loan costs $2,613/month but saves $212,235 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $1,610 | $2,372 | $279,767 | $127,029 |
| 5.50% | $1,703 | $2,451 | $313,212 | $141,225 |
| 6.00% | $1,799 | $2,532 | $347,515 | $155,683 |
| 6.25% | $1,847 | $2,572 | $364,975 | $163,008 |
| 6.50% | $1,896 | $2,613 | $382,633 | $170,398 |
| 6.75% | $1,946 | $2,655 | $400,486 | $177,851 |
| 7.00% | $1,996 | $2,696 | $418,527 | $185,367 |
| 7.25% | $2,047 | $2,739 | $436,750 | $192,946 |
| 7.50% | $2,098 | $2,781 | $455,152 | $200,587 |
| 8.00% | $2,201 | $2,867 | $492,466 | $216,052 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $3,353 | $19,401 | $296,647 |
| 2 | $3,578 | $19,177 | $293,069 |
| 3 | $3,817 | $18,937 | $289,252 |
| 4 | $4,073 | $18,681 | $285,179 |
| 5 | $4,346 | $18,409 | $280,833 |
Income needed
Using the common 28% front-end guideline and assuming roughly $375/month for tax and insurance, a homeowner would need a gross income of about $97,337/year at 6.5%.
As a rental
A $300,000 loan is 75% of a $400,000 purchase. To pass the 1% rule that property would need about $4,000/month in rent; for a DSCR of 1.25 on P&I plus ~$375 tax and insurance, rent of about $2,839/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.