Monthly payment on a $800,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $800,000 mortgage costs $5,057/month; a 15-year loan costs $6,969/month but saves $565,961 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $4,295 | $6,326 | $746,046 | $338,743 |
| 5.50% | $4,542 | $6,537 | $835,232 | $376,600 |
| 6.00% | $4,796 | $6,751 | $926,706 | $415,154 |
| 6.25% | $4,926 | $6,859 | $973,266 | $434,689 |
| 6.50% | $5,057 | $6,969 | $1,020,356 | $454,395 |
| 6.75% | $5,189 | $7,079 | $1,067,963 | $474,270 |
| 7.00% | $5,322 | $7,191 | $1,116,071 | $494,313 |
| 7.25% | $5,457 | $7,303 | $1,164,668 | $514,523 |
| 7.50% | $5,594 | $7,416 | $1,213,738 | $534,898 |
| 8.00% | $5,870 | $7,645 | $1,313,242 | $576,139 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $8,942 | $51,737 | $791,058 |
| 2 | $9,541 | $51,138 | $781,518 |
| 3 | $10,180 | $50,499 | $771,338 |
| 4 | $10,861 | $49,817 | $760,477 |
| 5 | $11,589 | $49,090 | $748,888 |
Income needed
Using the common 28% front-end guideline and assuming roughly $1,000/month for tax and insurance, a homeowner would need a gross income of about $259,566/year at 6.5%.
As a rental
A $800,000 loan is 75% of a $1,066,667 purchase. To pass the 1% rule that property would need about $10,667/month in rent; for a DSCR of 1.25 on P&I plus ~$1,000 tax and insurance, rent of about $7,571/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.