Income Needed For 1 Million Mortgage

Now that we have an idea of how much a mortgage payment would be on a million dollar home we can determine what kind of income is required to afford it.

Income needed for 1 million mortgage. Another 31 548 in cash reserves the equivalent of six months of. Salary needed for 1 million house. A good rule of thumb is to spend no more than 28 of your pre tax income on your mortgage payment. Monthly payments on a 1 000 000 mortgage.

Income needed to afford a million dollar home. This page will calculate how much you need to earn to buy a house that costs 1 000 000. To afford a 1 million home most buyers will probably need at least. 224 223 in cash to cover upfront expenses including a down payment and closing costs.

There s no set minimum salary requirement but you may need up to a 16k monthly salary. Salary needed for 1 000 000 dollar mortgage. As with many of the components in this process how large of a payment the bank thinks you can afford. 225 384 in annual household income to pay for ongoing costs including monthly mortgage payments maintenance insurance and homeowners association fees and taxes.

In the silicon valley a million dollars might buy you a modest 2 or 3 bedroom house in the cheaper cities. Outsiders might describe them as little old shacks. Multiply the annual interest expense by three and you get 150 000 195 000 the minimum annual income recommended to take out such a loan. With that in mind your take home income needs to be around 290k each year to afford the mortgage on a 1 million house.

Most people don t need a 1 million house however personal finance gurus say your mortgage or housing payment should be no more than 28 percent of your income. Back in 2002 a 1 million mortgage cost around 50 000 to 65 000 a year in interest expense given mortgage rates were 5 6 5 for a 5 1 arm or a 30 year fixed.