How Much Does a $1 Million Mortgage Cost Per Month?

A million-dollar home used to be a symbol of extreme wealth. In many U.S. markets today, it's a three-bedroom house in a decent school district. So if you're running the numbers on a $1 million purchase, you're not alone — and you deserve a straight answer on what it actually costs to carry that mortgage every month.

The short version: more than most people expect, and a lot depends on variables that aren't always front and center when you're browsing listings.

Let's get into it.

Calculate Your Reality

The Baseline: Principal and Interest

The foundation of your monthly payment is principal (what you borrowed) and interest (what the lender charges to lend it to you). This is the number mortgage calculators typically spit out — but it's never the full story.

Assuming a 20% down payment on a $1 million home, you're financing $800,000. As of late February 2026, the 30-year fixed mortgage rate averages approximately 6.0% — down meaningfully from the 7%+ environment of 2023 and much of 2024. Here's what principal and interest (P&I) looks like across a realistic rate range on a 30-year fixed mortgage:

At today's rates, you're looking at approximately $4,800/month just for P&I — before a single other cost enters the picture.

On a 15-year mortgage, the current average rate sits around 5.44%. Your monthly payment is significantly higher, but the total interest paid over the life of the loan drops dramatically:

What Gets Added On Top

Here's where the real number lives. Your actual monthly housing cost includes several more line items:

Property Taxes

Property tax rates vary enormously by location — from under 0.5% in some states to over 2% in others. On a $1 million home, this range translates to roughly $417 to $1,667+ per month, typically collected as part of your escrow payment alongside your mortgage.

States with high property taxes (New Jersey, Illinois, Texas) can easily push your all-in payment $1,000 or more above the P&I number alone.

Homeowners Insurance

For a $1M property, budget $200–$400/month for standard coverage — more if you're in a flood zone, wildfire risk area, or high-value coastal market.

HOA Fees

If you're buying a condo, townhome, or a home in a planned community, HOA fees can range from $100/month to well over $1,000/month. These aren't included in your mortgage payment but are very much a real cost of ownership.

PMI (If You Put Down Less Than 20%)

If your down payment is less than 20%, you'll owe Private Mortgage Insurance — typically 0.5%–1.5% of the loan amount annually. On an $800K+ loan, that's $333–$1,000+ per month until you reach 20% equity.

The Real Monthly Number: A Full Breakdown

Let's put it all together with a realistic example — a $1M home in a mid-to-high tax state, 20% down, 30-year fixed at today's average of 6.0%:

Add an HOA, and you're easily at $6,500–$7,500/month or more. In a high-tax state, that number climbs higher still.

What About a Jumbo Loan?

A $1 million home almost certainly means a jumbo mortgage. In 2026, the baseline conforming loan limit set by the FHFA is $832,750 for most U.S. markets — meaning any loan above that threshold is considered jumbo. Jumbo loans come with a few important distinctions:

• Stricter qualification requirements: Most lenders want a credit score of 700+, often 720 or higher

• Higher down payment minimums: Typically 10–20%, sometimes more

• Different rate dynamics: In recent years jumbo rates have actually run slightly below conforming rates in some markets — an unusual dynamic, but worth checking with your specific lender

Because jumbo loans can't be sold to Fannie Mae or Freddie Mac, lenders hold them on their own books — which is why the qualification bar is higher.

How Down Payment Changes Everything

The 20% assumption above means putting $200,000 down. Not everyone has that. Here's how different down payment scenarios affect the monthly payment at today's 6.0% rate, 30-year fixed:

PMI is a significant cost — and on a million-dollar home, it adds up fast. Many jumbo lenders also require a minimum of 20% down regardless. The difference in monthly payments could impact your long-term wealth. Use our Compound Interest Calculator to see what a larger down payment and investing that monthly savings could mean in the future.

Income Required to Qualify

Most lenders use a debt-to-income (DTI) ratio of 43% or lower as a qualification threshold, with 36% or below considered comfortable.

If your estimated all-in monthly payment is ~$6,000, you'd need gross monthly income of at least $16,667/month — roughly $200,000/year — to stay at or below the 36% DTI guideline. At 43% DTI, the minimum drops to around $167,000/year, but that leaves significantly less room for other debts and savings.

The Cost Over Time

It's worth zooming out. On an $800,000 loan at 6.0% over 30 years:

• Total principal repaid: $800,000

• Total interest paid: ~$927,000

• Total cost of borrowing: ~$1,727,000

You're paying back nearly 2.2 times the loan amount over 30 years. Not a reason to avoid buying — but a reason to think carefully about rate, term, and how extra payments over time can reduce your long-run cost significantly.

The Bottom Line

A $1 million mortgage doesn't have a single monthly number — it has a range, shaped by your rate, down payment, location, loan type, and a stack of additional costs that can push your all-in monthly obligation well past $6,000.

The key is knowing your full number before you fall in love with a house. Run the real math — including taxes, insurance, and HOA — so you're comparing homes on actual cost of ownership, not just listing price.

Use our Mortgage Calculator to estimate your exact monthly payment based on your loan amount, rate, and term — and see how different down payment scenarios affect your costs.

Sources

• Freddie Mac Primary Mortgage Market Survey, Feb. 26, 2026: 30-yr avg 5.98%, 15-yr avg 5.44% — freddiemac.com/pmms

• Bankrate National Mortgage Rate Survey, Feb. 27, 2026: 30-yr avg 6.04% — bankrate.com/mortgages/mortgage-rates

• FHFA 2026 Conforming Loan Limit: $832,750 baseline — fhfa.gov

• All payment figures calculated using standard amortization formula