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$1 MILLION HOME

Mortgage payment on a $1 million home

$6,528/month on a 30-year loan, or $8,060/month on a 15-year loan, is the estimated payment on a $1 million home with 20% down, at the Freddie Mac PMMS 30-year (7.4%) and 15-year (6.73%) average rates as of 10/8/2026, national-average property tax and insurance.

A $1 million home with a $200,000 down payment leaves a $800,000 loan. To keep the $6,528 total 30-year payment at or under 28% of gross income (the calculator's default housing ratio), household income would need to be roughly $279,787 a year, before other debts. Choosing the 15-year term instead cuts lifetime interest by about $721,380 ($1,194,054 vs $472,673), at the cost of a $1,531/month higher payment.

30-year vs 15-year payment on a $1 million home
TermRatePrincipal & interestTotal monthly paymentTotal interest
30-year7.4%$5,539$6,528$1,194,054
15-year6.73%$7,070$8,060$472,673

Property taxes add $750/month and insurance adds $239/month in this example, on top of principal and interest, for either term.

Open the 30-year example Open the 15-year example

Source references: Tax Foundation: Property Taxes by State and County, 2026 Insurance.com: Average Homeowners Insurance Rates by State (2026)
Rate reference as of 10/8/2026. Educational software; no professional review claimed.

GOOD QUESTIONS

A few things you
might be wondering.

What down payment does this $1,000,000 example use?

20%, or $200,000, which is the threshold below which this model adds borrower-paid PMI. A smaller down payment raises the loan amount, the payment and usually adds PMI.

Why do the tax and insurance assumptions matter?

This page uses the Tax Foundation's 0.9% national average effective property tax rate and Insurance.com's $2,872 national average annual homeowners insurance premium. Your state and county can differ substantially; see the by-state examples for state-specific figures.

Which term should I choose, 15 or 30 years?

A 15-year loan pays off faster and usually carries a lower rate, but a materially higher required monthly payment. See the full 15 vs 30 comparison for the tradeoff at this price.