Key takeaways
- A 30-year mortgage on a $1M house costs between $6,700–$8,200 per month
- Over 30 years, you may pay over $1M in interest at today’s rates
- Factors like loan duration, interest rate, and down payment heavily impact your monthly mortgage payments
Not long ago, a million dollars might have felt like a fortune. However, in today’s housing market, it’s common to find listings for homes that fall into that seven-figure range, especially in high-cost cities like Boston and San Francisco. But what does a $1M home really cost in terms of your monthly mortgage payment? Let’s break it down.
What’s included in a $1M mortgage payment?
Your mortgage payment is more than just paying back the loan. Here’s what’s typically included:
- Principal and interest: The amount borrowed plus the interest charged by your lender
- Private mortgage insurance (PMI): Needed if you put less than 20% down
- Property taxes: Set by your local government and vary based on location
- Homeowners insurance: Protects your home against damage and liability
How much you pay every month is determined by your interest rate, loan type, and down payment size. In the tables below, we’ll break down what the estimated monthly mortgage payments for a $1 million home look like based on how much money you put down upfront.
Example monthly payments for a $1M home
These estimates include the main components of a mortgage payment: principal, interest, and average additional costs like taxes and insurance. Property taxes and insurance vary by location, so actual monthly costs may differ.
30-year loan at 6.875% interest
| Down payment | Loan amount | Monthly payment (principal + interest) | Estimated total payment (including taxes + insurance) |
| 20% ($200K) | $800,000 | $5,255 | $6,697 |
| 10% ($100K) | $900,000 | $5,912 | $7,917 |
| 5% ($50K) | $950,000 | $6,241 | $8,276 |
15-year loan at 5.99% interest
| Down payment | Loan amount | Monthly payment (principal + interest) | Estimated total payment… |