If you put $200k down, you would likely owe an extra $375 each month. This can cost over 1% of the value of your loan. If you put less than 20% down on a home, most lenders require private mortgage insurance (PMI). That initial payment, along with your DTI and credit score, will determine your monthly mortgage.Įxpected and unexpected expenses of owning a million-dollar home It’s important to plan for expenses beyond the mortgage. With a 20% down payment, typical closing costs can be more than 2%, meaning an additional $16,000 on top of the $200,000 you’re already putting down.

If your credit is worse or your down payment isn’t as high, expect the monthly cost to be substantially more. Even if you make $200,000 annually, that’s still a quarter of your income going just to principal and interest. This would bring your monthly mortgage payment to about $4,100, before things like property taxes and homeowners insurance are factored in. If you make a 20% down payment ($200,000), and have few monthly expenses, you can likely secure a mortgage with a good interest rate (say, a 30-year fixed-rate mortgage at 2.75%). It's crucial to consider these elements to determine your financial ability to manage a $1 million mortgage. This range, however, is subject to variation depending on syour debt-to-income ratio (DTI), credit score, the size of your down payment, and the current interest rates. What annual salary do you need to afford a million-dollar house? Salary for a $1 Million Home Purchase: To comfortably afford a home valued at $1 million, financial experts recommend an annual salary between $100,000 and $225,000. Let’s examine what it takes to afford a million-dollar home, including annual income, mortgage payments and other costs of ownership. Published Date: NovemIf owning a million-dollar home is one of your life goals, you’re not alone.

Example budget 150k household