Monthly payment on a $750,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $750,000 mortgage costs $4,741/month; a 15-year loan costs $6,533/month but saves $530,589 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $4,026 | $5,931 | $699,418 | $317,571 |
| 5.50% | $4,258 | $6,128 | $783,030 | $353,063 |
| 6.00% | $4,497 | $6,329 | $868,786 | $389,207 |
| 6.25% | $4,618 | $6,431 | $912,436 | $407,521 |
| 6.50% | $4,741 | $6,533 | $956,584 | $425,995 |
| 6.75% | $4,864 | $6,637 | $1,001,215 | $444,628 |
| 7.00% | $4,990 | $6,741 | $1,046,317 | $463,418 |
| 7.25% | $5,116 | $6,846 | $1,091,876 | $482,365 |
| 7.50% | $5,244 | $6,953 | $1,137,879 | $501,467 |
| 8.00% | $5,503 | $7,167 | $1,231,164 | $540,130 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $8,383 | $48,503 | $741,617 |
| 2 | $8,944 | $47,942 | $732,673 |
| 3 | $9,543 | $47,343 | $723,129 |
| 4 | $10,183 | $46,704 | $712,947 |
| 5 | $10,864 | $46,022 | $702,082 |
Income needed
Using the common 28% front-end guideline and assuming roughly $938/month for tax and insurance, a homeowner would need a gross income of about $243,343/year at 6.5%.
As a rental
A $750,000 loan is 75% of a $1,000,000 purchase. To pass the 1% rule that property would need about $10,000/month in rent; for a DSCR of 1.25 on P&I plus ~$938 tax and insurance, rent of about $7,098/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.