Mortgage Calculator
FAQ
Your questions answered.
What is the monthly payment on a $1 million mortgage?
At the current 30-year fixed rate of 6.0%, a $1 million mortgage (with 20% down, so an $800,000 loan) carries a principal and interest payment of $4,796/month. Add estimated property taxes and insurance for a home in that price range, and total PITI is approximately $6,296/month. Your actual payment depends on your location's tax rate, your insurance coverage, and the rate you qualify for.
How much do I need to earn to afford a $1 million home?
Using the standard 28% front-end DTI guideline, a $1 million home with 20% down requires a monthly housing cost of approximately $6,296 — which means a gross monthly income of roughly $22,500, or about $270,000 per year. Lenders also evaluate your total debt load, credit score, and assets. Use Hauser's affordability calculator for a more precise answer based on your full financial picture.
What credit score do I need for a jumbo mortgage?
Most jumbo loan lenders (loans above the $806,500 conforming limit in 2026) require a minimum credit score of 700–720, with the best rates reserved for 740+. Down payment requirements are typically 10–20%, and debt-to-income requirements are stricter than for conforming loans.
Does a larger down payment lower my monthly payment?
Yes, in two ways. A larger down payment reduces the loan balance — every extra $100,000 down reduces your monthly P&I by approximately $600 at today's rates. It also eliminates PMI once you reach 20% equity, and may qualify you for a slightly better interest rate.
What is a jumbo mortgage?
A jumbo mortgage is any loan that exceeds the conforming loan limit, which is $806,500 for most U.S. markets in 2026. Jumbo loans carry slightly different underwriting requirements — typically higher credit score thresholds, larger down payments, and more stringent income verification — but current jumbo rates are not dramatically higher than conforming rates.
How to Use This Calculator
Home Price ($): Enter the purchase price of the home.
Down Payment: Enter either a dollar amount or a percentage. 20% or more avoids PMI. Adjust the slider or type directly — both fields update together.
Interest Rate (%): Enter the rate you've been quoted, or use the default to model current market conditions.
Loan Term (in Years): Choose 15, 20, 30, or 40 years. Shorter terms carry higher monthly payments but significantly less total interest paid.
Other Expenses: Enter your annual Property Tax, Insurance, and HOA amounts. These are divided monthly and added to your payment. Adjust them to match your specific property and location — they vary significantly and have a real impact on your total.
The calculator returns a full payment breakdown — Principal & Interest, Property Tax, Insurance, and HOA — plus your total loan cost and total interest paid over the life of the loan.
What Your Monthly Payment Actually Includes
Most online calculators show only principal and interest. Your actual monthly obligation includes four components.
Principal & Interest is the core loan payment — the amount that goes toward paying down what you borrowed and compensating the lender. In the early years of a 30-year mortgage, the majority goes to interest, not principal.
Property Tax is collected monthly and held in escrow by your lender. Rates vary significantly by state and county — from under 0.5% to over 2% annually.
Insurance covers your home against damage and liability. Budget approximately 0.5–0.8% of the home's value annually, though this varies by location and coverage level.
HOA fees apply to condos, townhomes, and many planned communities. Enter $0 if your property has no HOA.
Loan Term: How the Choice Affects Your Total Cost
On a $1,200,000 loan at 6.75%, the monthly P&I payment on a 30-year term is approximately $7,783. On a 15-year term at a slightly lower rate it rises significantly — but the total interest paid drops by hundreds of thousands of dollars. The 40-year term lowers the monthly payment but substantially increases what you pay over time.
The right term depends on your monthly cash flow needs, how long you plan to stay in the home, and your broader financial priorities. Use the Loan Term selector to compare all four options side by side before deciding.
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