Quick answer
With 20% down and a 6.5% 30-year mortgage, a $600,000 house needs about $161,097 in gross annual income. The estimated monthly housing cost is $3,759 before HOA dues or unusual local fees. That's about $26,849/year more than a $500,000 house needs. For context, the required income is about 2.1x the roughly $75,000 US median household income.
That monthly cost breaks down to roughly $3,034 in principal & interest on the $480,000 loan, plus about $550/month in estimated property tax and $175/month in estimated insurance.
$600,000 house income table
This table shows the approximate gross annual income needed at common down payments and mortgage rates, using a 28% housing debt-to-income guideline.
| Down payment | 5.5% rate | 6.0% rate | 6.5% rate | 7.0% rate | 7.5% rate |
|---|---|---|---|---|---|
| 3.5% down | $184,371 | $192,253 | $200,322 | $208,569 | $216,984 |
| 5% down | $181,988 | $189,747 | $197,691 | $205,810 | $214,094 |
| 10% down | $174,045 | $181,396 | $188,921 | $196,613 | $204,461 |
| 15% down | $166,102 | $173,045 | $180,152 | $187,416 | $194,828 |
| 20% down | $147,874 | $154,408 | $161,097 | $167,934 | $174,910 |
| 25% down | $140,574 | $146,699 | $152,970 | $159,380 | $165,920 |
Want your exact home budget?
Adjust income, debts, rate and down payment in the full affordability calculator.
Open affordability calculatorHow the estimate works
- Mortgage: 30-year fixed principal and interest on the $480,000 loan (20% down) comes to about $3,034/month on this $600,000 house.
- Property tax: estimated at 1.1% of the home price - about $550/month here.
- Insurance: estimated at 0.35% of the home price - about $175/month here.
- PMI: estimated when the down payment is below 20%.
- Income rule: housing cost should stay near or below 28% of gross monthly income - 28% of the $161,097 required here is about $3,759/month, matching the total monthly cost above.
Lower the income required
On this $600,000 house specifically: dropping the rate from 7.5% to 5.5% lowers the required income by about $27,036/year, and raising the down payment from 3.5% to 25% lowers it by about $47,351/year (smaller loan, and PMI drops off at 20%). You can also compare the payment directly on the $600,000 mortgage payment table.
This table focuses on income, down payment, mortgage rate, property tax, insurance, PMI and housing debt-to-income math.