$900,000 loan: monthly payment by rate
| Rate | 30-year | 15-year | Total interest (30y) |
|---|---|---|---|
| 5% | $4,831.39 | $7,117.14 | $839,302 |
| 5.5% | $5,110.10 | $7,353.75 | $939,636 |
| 6% | $5,395.95 | $7,594.71 | $1,042,544 |
| 6.5% | $5,688.61 | $7,839.97 | $1,147,900 |
| 7% | $5,987.72 | $8,089.45 | $1,255,580 |
| 7.5% | $6,292.93 | $8,343.11 | $1,365,455 |
| 8% | $6,603.88 | $8,600.87 | $1,477,397 |
Worked example
At 6.5% for 30 years, r = 6.5 ÷ 12 ÷ 100 = 0.0054167 and n = 360, so the payment is $5,688.61 a month and you would pay $1,147,900 in interest over the loan. A 15-year term raises the payment to $7,839.97 but cuts interest to $511,194, saving $636,706.
Buying a $900,000 house vs borrowing $900,000
If $900,000 is the price and you put 20% down, you borrow $720,000: $4,550.89 a month at 6.5% (30 years). Borrowing $900,000 with 20% down means a home price of about $1,125,000.
Under the traditional 28% guideline (housing cost ≤ 28% of gross income), a $5,688.61 principal-and-interest payment alone suggests a gross income of about $243,798 a year; taxes and insurance push that higher.
Rates in the tables are a range for comparison, not current market quotes. Payments are principal and interest only unless stated.
Related
Frequently asked questions
What is the monthly payment on a $900,000 mortgage?
$5,688.61 at 6.5% for 30 years, or $7,839.97 for 15 years (principal and interest).
How much interest on a $900,000 mortgage?
About $1,147,900 over 30 years at 6.5%.
What income do I need for a $900,000 mortgage?
Roughly $243,798+ a year under the 28% guideline, before taxes and insurance.