Affording a $750k home mortgage is not easy. You must have a solid income source and excellent savings to afford a $750k home mortgage. How much you need to earn to afford a $750k home mortgage depends on quite a few things like down payment, interest rate, loan term, etc. If you made a $150k down payment and if the interest rate is 3.25% with a loan term of 30 years then you have to earn at least $111,910 per year before tax. Here, your monthly mortgage payment would be $2,611.
Details on the Income Needed to Afford a $750k Home Mortgage
| Down Payment | 2.50% | 2.75% | 3.00% | 3.25% | 3.50% |
| $0 $37,500 $75,000 $112,500 $150,000 $187,500 $225,000 $262,500 $300,000 $337,500 $375,000 | $127,003 $120,653 $114,303 $107,953 $101,603 $95,252 $88,902 $82,552 $76,202 $69,852 $63,502 | $131,220.00 $124,659.00 $118,098.00 $111,537.00 $104,976.00 $98,415.00 $91,854.00 $85,293.00 $78,732.00 $72,171.00 $65,610.00 | $135,516 $128,740 $121,964 $115,188 $108,412 $101,637 $94,861 $88,085 $81,309 $74,534 $67,758 | $139,888.00 $132,893.00 $125,899.00 $118,905.00 $111,910.00 $104,916.00 $97,921.00 $90,927.00 $83,933.00 $76,938.00 $69,944.00 | 144,336.00 137,119.00 129,902.00 122,685.00 115,469.00 108,252.00 101,035.00 93,818.00 86,601.00 79,385.00 72,168.00 |
| Down Payment | 3.75% | 4.00% | 4.25% | 4.50% | |
| $0 $37,500 $75,000 $112,500 $150,000 $187,500 $225,000 $262,500 $300,000 $337,500 $375,000 | 148,859.00 141,416.00 133,973.00 126,530.00 119,087.00 111,644.00 104,201.00 96,758.00 89,315.00 81,872.00 74,429.00 | 153,455.00 145,782.00 138,109.00 130,437.00 122,764.00 115,091.00 107,418.00 99,746.00 92,073.00 84,400.00 76,727.00 | $158,124 $150,217 $142,311 $134,405 $126,499 $118,593 $110,686 $102,780 $94,874 $86,968 $79,062 | $162,863 $154,720 $146,577 $138,434 $130,291 $122,147 $114,004 $105,861 $97,718 $89,575 $81,432 |
Average Home Price by State in the USA in 2022
| State | Price | State | Price |
| Hawaii California Washington Massachusetts Colorado Utah Oregon Idaho New Jersey Nevada Montana Rhode Island Arizona New York New Hampshire Maryland Virginia Florida Connecticut Maine Delaware Vermont Wyoming Minnesota Alaska | $887,662 $872,894 $663,136 $608,499 $599,500 $580,251 $527,374 $500,708 $478,426 $465,945 $461,868 $461,200 $453,645 $448,151 $434,551 $416,409 $406,488 $396,641 $383,392 $372,263 $359,450 $358,071 $340,039 $336,830 $326,656 | Georgia New Mexico Tennessee South Carolina South Dakota Pennsylvania North Dakota Illinois Wisconsin Michigan Nebraska Missouri Indiana Louisiana Kansas Ohio Alabama Kentucky Iowa Arkansas Oklahoma Mississippi West Virginia Texas North Carolina | $316,790 $302,730 $302,480 $298,971 $295,855 $278,702 $276,009 $269,935 $268,418 $245,105 $242,576 $234,970 $226,180 $220,642 $219,302 $218,554 $211,743 $203,256 $198,353 $185,323 $182,731 $176,906 $144,935 $323,290 $321,603 |
Cost Details of a $750k Home Mortgage
Monthly Payment Options for $750k Home Mortgage
| Down Payment (% – Amount) | 15 Year Mortgage (4.43% Fixed Rate) | 30 Year Mortgage (5.25% Fixed Rate) |
| 0% – $0 3% – $22,500 5% – $37,500 7% – $52,500 10% – $75,000 15% – $112,500 20% – $150,000 25% – $187,500 30% – $225,000 | 5,711.00 5,539.00 5,425.00 5,311.00 5,140.00 4,854.00 4,569.00 4,283.00 3,997.00 | $4,142 $4,017 $3,934 $3,852 $3,727 $3,520 $3,313 $3,106 $2,899 |
Total Costs Comparison for $750k Home Mortgage
| Down Payment (% – Amount) | 15 Year Mortgage (4.43% Fixed Rate) | 30 Year Mortgage (5.25% Fixed Rate) |
| 0% – $0 3% – $22,500 5% – $37,500 7% – $52,500 10% – $75,000 15% – $112,500 20% – $150,000 25% – $187,500 30% – $225,000 | 1,027,918.00 997,080.00 976,522.00 955,964.00 925,126.00 873,730.00 822,334.00 770,938.00 719,542.00 | 1,490,950.00 1,446,221.00 1,416,402.00 1,386,583.00 1,341,855.00 1,267,307.00 1,192,760.00 1,118,212.00 1,043,665.00 |
Household Income for $750k Home Mortgage
| Down Payment (% – Amount) | 15 Year Mortgage Household Income | 30 Year Mortgage Household Income |
| 0% – $0 3% – $22,500 5% – $37,500 7% – $52,500 10% – $75,000 15% – $112,500 20% – $150,000 25% – $187,500 30% – $225,000 | 20,395.00 19,783.00 19,375.00 18,968.00 18,356.00 17,336.00 16,316.00 15,296.00 14,277.00 | 14,791.00 14,347.00 14,052.00 13,756.00 13,312.00 12,572.00 11,833.00 11,093.00 10,354.00 |
Other Costs of $750k Home Mortgage
When you are planning to buy a home, you have to consider a few other costs along with the down payment and mortgage. These costs will influence your house purchase decision. Some important costs are –
- Private Mortgage Insurance (PMI): If you made a down payment of less than 20% then you will need PMI. A PMI will increase your monthly mortgage payment.
- Home Purchasing Fees: You have to pay fees like inspection, closing costs, etc. at the time of closing the deal.
- Taxes and Insurance: The more expensive the house is, the more you have to pay in taxes and insurance.
- Homeowners’ Association Fees: If you want to purchase a home in a condominium or planned development area then you have to pay monthly or yearly additional fees known as Homeowners’ Association Fees.
Amortization Schedule Table of $750k, 30 Year Home Mortgage Loan at 4 Percent
| Year | Beginning Balance | Monthly Payment | Total Interest Paid | Total Principal Paid | Total Payment through the Year | 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 | $750,000.00 $736,792.29 $723,046.45 $708,740.61 $693,851.92 $678,356.64 $662,230.06 $645,446.46 $627,979.07 $609,800.04 $590,880.36 $571,189.86 $550,697.14 $529,369.52 $507,172.98 $484,072.12 $460,030.08 $435,008.54 $408,967.58 $381,865.68 $353,659.60 $324,304.38 $293,753.16 $261,957.27 $228,865.96 $194,426.44 $158,583.81 $121,280.88 $82,458.18 $42,053.78 | $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 $3,580.61 | $29,759.61 $29,221.48 $28,661.48 $28,078.63 $27,472.04 $26,840.74 $26,183.72 $25,499.93 $24,788.29 $24,047.64 $23,276.82 $22,474.60 $21,639.70 $20,770.78 $19,866.46 $18,925.28 $17,945.78 $16,926.36 $15,865.42 $14,761.24 $13,612.10 $12,416.10 $11,171.43 $9,876.01 $8,527.80 $7,124.69 $5,664.39 $4,144.62 $2,562.92 $916.79 | $13,207.71 $13,745.84 $14,305.84 $14,888.69 $15,495.28 $16,126.58 $16,783.60 $17,467.39 $18,179.03 $18,919.68 $19,690.50 $20,492.72 $21,327.62 $22,196.54 $23,100.86 $24,042.04 $25,021.54 $26,040.96 $27,101.90 $28,206.08 $29,355.22 $30,551.22 $31,795.89 $33,091.31 $34,439.52 $35,842.63 $37,302.93 $38,822.70 $40,404.40 $42,053.78 | $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,967.32 $42,970.57 | $736,792.29 $723,046.45 $708,740.61 $693,851.92 $678,356.64 $662,230.06 $645,446.46 $627,979.07 $609,800.04 $590,880.36 $571,189.86 $550,697.14 $529,369.52 $507,172.98 $484,072.12 $460,030.08 $435,008.54 $408,967.58 $381,865.68 $353,659.60 $324,304.38 $293,753.16 $261,957.27 $228,865.96 $194,426.44 $158,583.81 $121,280.88 $82,458.18 $42,053.78 $0.00 |
FAQs about How much Salary Income Do I Need to Afford a $750k Home Mortgage
Can I afford a $750k house?
The answer to this question depends on how much money you or your household make a year. If your or your household income is between $250,000 and $300,000 a year then you can afford a $750k house.
How much do you need to make to get a $600000 mortgage?
If you want to get a $600000 mortgage with a 20 percent down payment then you have to earn at least $90,000 per year before tax. The 20% of the down payment will be $120,000.
How much would the mortgage payment be on a $750K house?
The answer to this question depends on the down payment, interest rate, loan term, etc. For example, if you made a 20% down payment then your total mortgage would be $600,000. Now, if the loan term is 30 years and if the interest rate is 3.5% then your monthly mortgage payment will be $2,694.
How much house can I afford if I make $150 000 a year?
If you make $150k a year then you can afford a $450,000 house!
References:
https://www.bogleheads.org/forum/viewtopic.php?t=367129
https://www.dollartimes.com/income-needed-for-house/750000
Last Updated on August 7, 2022 by Ana S. Sutterfield
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
