Monthly payment on a $350,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $350,000 mortgage costs $2,212/month; a 15-year loan costs $3,049/month but saves $247,608 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $1,879 | $2,768 | $326,395 | $148,200 |
| 5.50% | $1,987 | $2,860 | $365,414 | $164,763 |
| 6.00% | $2,098 | $2,953 | $405,434 | $181,630 |
| 6.25% | $2,155 | $3,001 | $425,804 | $190,176 |
| 6.50% | $2,212 | $3,049 | $446,406 | $198,798 |
| 6.75% | $2,270 | $3,097 | $467,234 | $207,493 |
| 7.00% | $2,329 | $3,146 | $488,281 | $216,262 |
| 7.25% | $2,388 | $3,195 | $509,542 | $225,104 |
| 7.50% | $2,447 | $3,245 | $531,010 | $234,018 |
| 8.00% | $2,568 | $3,345 | $574,543 | $252,061 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $3,912 | $22,635 | $346,088 |
| 2 | $4,174 | $22,373 | $341,914 |
| 3 | $4,454 | $22,093 | $337,460 |
| 4 | $4,752 | $21,795 | $332,709 |
| 5 | $5,070 | $21,477 | $327,638 |
Income needed
Using the common 28% front-end guideline and assuming roughly $438/month for tax and insurance, a homeowner would need a gross income of about $113,560/year at 6.5%.
As a rental
A $350,000 loan is 75% of a $466,667 purchase. To pass the 1% rule that property would need about $4,667/month in rent; for a DSCR of 1.25 on P&I plus ~$438 tax and insurance, rent of about $3,312/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.