Where your first 5 years of payments go
On a 30-year $1,000,000 loan at 7.24%, the early payments are mostly interest. Over the first five years you pay $408,899, of which only $56,309 (13.8%) reduces the balance and $352,589 is interest. A 15-year loan at 6.60% pays off $231,427 in the same five years.
| Year | Principal paid | Interest paid | Balance at end | Paid off |
|---|---|---|---|---|
| Year 1 | $9,697 | $72,082 | $990,303 | 1.0% |
| Year 2 | $10,423 | $71,357 | $979,879 | 2.0% |
| Year 3 | $11,203 | $70,576 | $968,676 | 3.1% |
| Year 4 | $12,042 | $69,738 | $956,634 | 4.3% |
| Year 5 | $12,943 | $68,836 | $943,691 | 5.6% |
Adding even $700 a month toward principal shortens the loan and cuts interest; model extra payments in the mortgage calculator.
Nearby loan amounts
| Loan | 30-yr P&I | 15-yr P&I | PITI 30-yr | Income (28%) |
|---|---|---|---|---|
| $950,000 | $6,474 | $8,328 | $7,981 | $342,037 |
| $975,000 | $6,645 | $8,547 | $8,191 | $351,038 |
| $1,000,000 | $6,815 | $8,766 | $8,401 | $360,039 |
FAQ
What is the monthly payment on a $1,000,000 mortgage?
At the Freddie Mac average 30-year fixed rate of 7.24% (week of October 29, 2026), principal and interest on $1,000,000 is $6,815 a month. A 15-year loan at 6.60% is $8,766 a month. Adding estimated property tax ($938) and homeowners insurance ($648) brings the 30-year payment to about $8,401.
How much income do I need for a $1,000,000 mortgage?
Using the 28% housing guideline, a $8,401 monthly housing payment (30-year, with tax and insurance) needs about $360,039 of gross annual income ($30,003 a month). Under the 36% total-debt guideline, that income leaves room for about $2,400 a month of car, student-loan and card payments.
How much interest will I pay on a $1,000,000 mortgage?
Over 30 years at 7.24% you would pay about $1,453,393 in interest, 145% of the amount borrowed. A 15-year loan at 6.60% costs about $577,905 in interest, saving $875,488.
How much does 1% on the rate change a $1,000,000 payment?
On a 30-year loan of $1,000,000, each additional percentage point adds roughly $691 a month near today's rates. For example, the payment is $5,996 at 6% and $6,653 at 7%.
What house price does a $1,000,000 mortgage buy?
With 20% down, a $1,000,000 loan buys a home of about $1,250,000, with a down payment of $250,000. With less than 20% down, lenders usually add private mortgage insurance (PMI), which raises the monthly cost.
Assumptions & sources
- Rates: Freddie Mac Primary Mortgage Market Survey, week of October 29, 2026 — 30-year fixed 7.24% (prior week 7.32%, a year earlier 6.17%), 15-year fixed 6.60%. PMMS rates are national averages for borrowers with strong credit and 20% down; quotes vary.
- Property tax: 0.9% of home value per year — the 2025 national effective rate for single-family homes (ATTOM 2025 property tax analysis; average bill $4,427).
- Insurance: $2,490 a year for $400,000 of dwelling coverage (NerdWallet, updated May 2026), scaled to the home price.
- 20% down payment, so no PMI; no HOA dues, closing costs or points. Payments rounded to the nearest dollar.