How Much a $1,000,000 Mortgage Will Cost You – The Details

Spending a million dollars to buy a house means you can easily buy a mansion or a large apartment in an expensive city. However, when you get a $1,000,000 mortgage, it will cost you lots of money. Your specific monthly payment for a $1,000,000 mortgage depends on your interest rate, loan term, etc. If you get a million-dollar mortgage with a 4% fixed interest rate and if the loan term is 30 years then your monthly mortgage will be $4,774.15 and for a 15-year loan term, the cost will be $7,396.88 a month.

Monthly Payments on a $1,000,000 Mortgage by Interest Rate

Interest Rate	Monthly Payments (15 Years)	Monthly Payments (30 Years)
3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00%	$6,906 $7,027 $7,149 $7,272 $7,397 $7,523 $7,650 $7,778 $7,908	$4,216 $4,352 $4,490 $4,631 $4,774 $4,919 $5,067 $5,216 $5,368

Amortization Schedule For a 30 – year, $1,000,000 Mortgage with a 4% Fixed Rate

Year	Beginning Balance	Monthly Payment	Total Interest Paid	Total Principal Paid	Remaining Balance
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30	$1,000,000.00 $982,389.64 $964,061.80 $944,987.26 $925,135.59 $904,475.13 $882,972.94 $860,594.71 $837,304.76 $813,065.94 $787,839.59 $761,585.49 $734,261.75 $705,824.80 $676,229.28 $645,428.00 $613,371.82 $580,009.63 $545,288.21 $509,152.18 $471,543.92 $432,403.44 $391,668.32 $349,273.58 $305,151.62 $259,232.06 $211,441.67 $161,704.22 $109,940.39 $56,067.63	$4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15 $4,774.15	$39,679.47 $78,641.47 $116,856.76 $154,294.93 $190,924.31 $226,711.95 $261,623.56 $295,623.44 $328,674.46 $360,737.95 $391,773.68 $421,739.77 $450,592.66 $478,286.98 $504,775.53 $530,009.19 $553,936.83 $576,505.25 $597,659.06 $617,340.63 $635,489.99 $652,044.70 $666,939.80 $680,107.67 $691,477.95 $700,977.39 $708,529.78 $714,055.78 $717,472.85 $718,695.06	$17,610.37 $18,327.83 $19,074.55 $19,851.67 $20,660.47 $21,502.20 $22,378.22 $23,289.94 $24,238.82 $25,226.34 $26,254.10 $27,323.72 $28,436.96 $29,595.50 $30,801.29 $32,056.18 $33,362.20 $34,721.42 $36,136.02 $37,608.28 $39,140.47 $40,735.14 $42,394.71 $44,121.97 $45,919.56 $47,790.40 $49,737.46 $51,763.83 $53,872.77 $56,067.61	$982,389.64 $964,061.80 $944,987.26 $925,135.59 $904,475.13 $882,972.94 $860,594.71 $837,304.76 $813,065.94 $787,839.59 $761,585.49 $734,261.75 $705,824.80 $676,229.28 $645,428.00 $613,371.82 $580,009.63 $545,288.21 $509,152.18 $471,543.92 $432,403.44 $391,668.32 $349,273.58 $305,151.62 $259,232.06 $211,441.67 $161,704.22 $109,940.39 $56,067.63 $0.00

Amortization Schedule For a 15 – year, $1,000,000 Mortgage with a 4% Fixed Rate

Year	Beginning Balance	Monthly Payment	Total Interest Paid	Total Principal Paid	Remaining Balance
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15	$1,000,000.00 $950,333.46 $898,643.43 $844,847.47 $788,859.78 $730,591.06 $669,948.38 $606,835.03 $541,150.34 $472,789.56 $401,643.66 $327,599.16 $250,537.97 $170,337.19 $86,868.91	$7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88 $7,396.88	$39,096.01 $76,168.53 $111,135.12 $143,909.98 $174,403.81 $202,523.69 $228,172.89 $251,250.75 $271,652.52 $289,269.17 $303,987.22 $315,688.58 $324,250.35 $329,544.62 $331,438.27	$49,666.55 $51,690.02 $53,795.95 $55,987.69 $58,268.71 $60,642.67 $63,113.36 $65,684.69 $68,360.77 $71,145.91 $74,044.50 $77,061.20 $80,200.79 $83,468.28 $86,868.91	$950,333.46 $898,643.43 $844,847.47 $788,859.78 $730,591.06 $669,948.38 $606,835.03 $541,150.34 $472,789.56 $401,643.66 $327,599.16 $250,537.97 $170,337.19 $86,868.91 $0.00

How to Get a $1,000,000 Mortgage

Going for a $1,000,000 mortgage is a very big financial decision. Therefore, you should go through some steps to get one million mortgages. Now check the below information –

Step – 1: Calculate your Budget

Before making the final decision you should calculate your income, expense, and monthly budget to support the mortgage. Depending on various factors your monthly mortgage payment could range from $4000 – $8000. While creating a budget to support your mortgage payment you should also consider other costs like property taxes, homeowners insurance, property maintenance cost, and many more.

Step – 2: Review the Credit Report

Before applying for a mortgage, you should review your credit report and then check with all three credit bureaus. Moreover, to qualify for this type of mortgage, you must have a higher credit score. If your credit score is low then you might be able to qualify for the mortgage but you have to pay a higher interest rate.

Step – 3: Get Pre Approved

You should try to get pre-approved for this type of mortgage. Therefore, you should provide some basic information about your finances to the lenders. This information will help the lender decide whether you could qualify for the one million dollar mortgage. Moreover, this process will help you know which lender will offer you the best interest rate and APR.

Step – 4: Compare Mortgage Rate

One million dollar mortgage is huge money so a small difference in the interest rate can save you lots of money. So, before choosing a lender, you should compare the interest rate of other lenders and find the best deal for you. You should also check if the lender has any other hidden fees.

Step – 5: Negotiate Home Purchase Details

Let’s not forget that you are making a huge purchase so, you should check every detail of the deal and don’t forget to negotiate home purchase details. You should negotiate the interest rate, loan term, and other conditions. Any mistakes will cause you lots of trouble.

Step – 6: Fill up the Mortgage Application

Once you have found your desired mortgage you should fill up the mortgage application and apply for the mortgage. You should submit all the required documents to complete the whole paperwork. You have to provide information regarding your income sources, financial obligations, information about debt payments, and child support.

Step – 7: Close the Deal

After submitting the application form and other documents, if the lender approves your mortgage application then you should close the deal as soon as possible. In this step, you may have to comply with some last-minute underwriting requests. In the final step, you have to sign dozens of papers in front of a notary. You have to provide your valid id to complete the process.

FAQs about How Much a $1,000,000 Mortgage Will Cost You

How much income do I need for a million-dollar mortgage?

According to many financial experts, you should have a monthly income of at least $100K to qualify for a million-dollar mortgage.

What is the mortgage on a 1 million dollar house?

The answer to this question depends on quite a few things like down payment, interest rate, loan term, etc. For example, if you make a 10% down payment and the interest rate is 5% and the loan term is 30 years then your monthly mortgage payment for a one million dollar mortgage would be $5,368.

How much do I need to make to buy a $300 K House?

To buy a $300k house, your salary should be between $50,000 and $74,500 a year. However, the exact value depends on your credit score, debt-to-income ratio, loan term, mortgage interest rate, etc.

Can a normal person get a million-dollar loan?

Whether you can qualify for a loan totally depends on your credit score. If your credit score is 650 or more; then you can qualify for a million-dollar loan.   

References:

https://www.credible.com/blog/mortgages/1000000-mortgage/
https://www.finder.com/million-dollar-mortgage

Last Updated on August 7, 2022 by Ana S. Sutterfield