Monthly payment on a $900,000 loan
Principal & interest only (add property tax, insurance and any HOA/PMI for the full payment). At 6.5% a 30-year $900,000 mortgage costs $5,689/month; a 15-year loan costs $7,840/month but saves $636,706 in interest.
| Rate | 30-year | 15-year | Total interest (30y) | Total interest (15y) |
|---|---|---|---|---|
| 5.00% | $4,831 | $7,117 | $839,302 | $381,086 |
| 5.50% | $5,110 | $7,354 | $939,636 | $423,675 |
| 6.00% | $5,396 | $7,595 | $1,042,544 | $467,048 |
| 6.25% | $5,541 | $7,717 | $1,094,924 | $489,025 |
| 6.50% | $5,689 | $7,840 | $1,147,900 | $511,194 |
| 6.75% | $5,837 | $7,964 | $1,201,458 | $533,553 |
| 7.00% | $5,988 | $8,089 | $1,255,580 | $556,102 |
| 7.25% | $6,140 | $8,216 | $1,310,251 | $578,838 |
| 7.50% | $6,293 | $8,343 | $1,365,455 | $601,760 |
| 8.00% | $6,604 | $8,601 | $1,477,397 | $648,156 |
First 5 years at 6.5% (30-year)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $10,060 | $58,204 | $889,940 |
| 2 | $10,733 | $57,530 | $879,207 |
| 3 | $11,452 | $56,811 | $867,755 |
| 4 | $12,219 | $56,044 | $855,536 |
| 5 | $13,037 | $55,226 | $842,499 |
Income needed
Using the common 28% front-end guideline and assuming roughly $1,125/month for tax and insurance, a homeowner would need a gross income of about $292,012/year at 6.5%.
As a rental
A $900,000 loan is 75% of a $1,200,000 purchase. To pass the 1% rule that property would need about $12,000/month in rent; for a DSCR of 1.25 on P&I plus ~$1,125 tax and insurance, rent of about $8,517/month. Test it in the rental cash flow calculator or the mortgage calculator with your own rate.