Monthly payment on a $600,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $600,000 mortgage costs $3,792/month; a 15-year loan costs $5,227/month but saves $424,471 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $3,221 | $4,745 | $559,535 | $254,057 |
| 5.50% | $3,407 | $4,903 | $626,424 | $282,450 |
| 6.00% | $3,597 | $5,063 | $695,029 | $311,365 |
| 6.25% | $3,694 | $5,145 | $729,949 | $326,017 |
| 6.50% | $3,792 | $5,227 | $765,267 | $340,796 |
| 6.75% | $3,892 | $5,309 | $800,972 | $355,702 |
| 7.00% | $3,992 | $5,393 | $837,053 | $370,735 |
| 7.25% | $4,093 | $5,477 | $873,501 | $385,892 |
| 7.50% | $4,195 | $5,562 | $910,303 | $401,173 |
| 8.00% | $4,403 | $5,734 | $984,931 | $432,104 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $6,706 | $38,803 | $593,294 |
| 2 | $7,155 | $38,353 | $586,138 |
| 3 | $7,635 | $37,874 | $578,503 |
| 4 | $8,146 | $37,363 | $570,357 |
| 5 | $8,692 | $36,817 | $561,666 |
Income needed
Using the common 28% front-end guideline and assuming roughly $750/month for tax and insurance, a homeowner would need a gross income of about $194,675/year at 6.5%.
As a rental
A $600,000 loan is 75% of a $800,000 purchase. To pass the 1% rule that property would need about $8,000/month in rent; for a DSCR of 1.25 on P&I plus ~$750 tax and insurance, rent of about $5,678/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.