Monthly payment on a $450,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $450,000 mortgage costs $2,844/month; a 15-year loan costs $3,920/month but saves $318,353 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $2,416 | $3,559 | $419,651 | $190,543 |
| 5.50% | $2,555 | $3,677 | $469,818 | $211,838 |
| 6.00% | $2,698 | $3,797 | $521,272 | $233,524 |
| 6.25% | $2,771 | $3,858 | $547,462 | $244,513 |
| 6.50% | $2,844 | $3,920 | $573,950 | $255,597 |
| 6.75% | $2,919 | $3,982 | $600,729 | $266,777 |
| 7.00% | $2,994 | $4,045 | $627,790 | $278,051 |
| 7.25% | $3,070 | $4,108 | $655,126 | $289,419 |
| 7.50% | $3,146 | $4,172 | $682,728 | $300,880 |
| 8.00% | $3,302 | $4,300 | $738,699 | $324,078 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $5,030 | $29,102 | $444,970 |
| 2 | $5,367 | $28,765 | $439,604 |
| 3 | $5,726 | $28,406 | $433,878 |
| 4 | $6,110 | $28,022 | $427,768 |
| 5 | $6,519 | $27,613 | $421,249 |
Income needed
Using the common 28% front-end guideline and assuming roughly $562/month for tax and insurance, a homeowner would need a gross income of about $146,006/year at 6.5%.
As a rental
A $450,000 loan is 75% of a $600,000 purchase. To pass the 1% rule that property would need about $6,000/month in rent; for a DSCR of 1.25 on P&I plus ~$562 tax and insurance, rent of about $4,259/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.