Buying a home is one of the biggest financial decisions you’ll make. But how much income do you need to comfortably afford a $600,000 mortgage in 2025?
This guide breaks it down step-by-step using real numbers, trusted mortgage rules like the 28/36 rule, and smart affordability strategies.
💵 How Much Income Do You Need for a $600,000 Mortgage?
Let’s look at the math based on a 30-year fixed mortgage at a 7% interest rate.
🔢 Estimated Monthly Mortgage Payment (Principal + Interest)
Using a mortgage calculator:
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Loan amount: $600,000
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Interest rate: 7%
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Loan term: 30 years
➡️ Monthly payment (P&I): $3,990
🧮 Required Annual Income Using the 28% Rule
The 28/36 rule says no more than 28% of your gross monthly income should go to housing.
So:
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$3,990 ÷ 0.28 = $14,250/month
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$14,250 × 12 = $171,000/year
✅ You’ll need at least $170,000 per year in gross income to safely afford a $600,000 mortgage at 7% interest (with no other debts).
📊 What Percentage of Your Income Should Go Toward a Mortgage?
The 28/36 Rule Explained:
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28% of income → for housing expenses (mortgage, insurance, taxes)
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36% of income → for total debt (including car loans, credit cards, etc.)
Why follow it?
✔️ Keeps your finances balanced
✔️ Reduces risk of loan denial
✔️ Increases long-term affordability
💰 Down Payment Scenarios for a $600,000 Mortgage
The more you put down, the less you need to borrow — which lowers your monthly payments and required income.
📉 Down Payment Comparison Table
| Down Payment % | Amount | Loan Amount | Monthly Payment (P&I est.) | PMI Required? |
|---|---|---|---|---|
| 20% | $120,000 | $480,000 | ~$3,190 | ❌ No |
| 15% | $90,000 | $510,000 | ~$3,390 | ✅ Yes |
| 10% | $60,000 | $540,000 | ~$3,590 | ✅ Yes |
| 5% | $30,000 | $570,000 | ~$3,790 | ✅ Yes |
📝 Note: These figures are estimates for principal + interest only and assume 7% interest. Taxes, insurance, and PMI will increase total costs.
🔍 What Factors Affect the Income Needed?
Your income requirement can change based on the following:
1. 📄 Loan Type
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Conventional loans often require 5–20% down.
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FHA may allow 3.5% down but has limits.
2. 📊 Debt-to-Income (DTI) Ratio
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Lenders prefer DTI under 36%.
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High student loan or credit card debt? You’ll need more income to qualify.
3. 🧠 Credit Score
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Score 740+ = best interest rates
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Lower score = higher monthly payments = higher income needed
4. 🏦 Interest Rate
A difference of 1% on a $600,000 loan could change your payment by over $350/month!
🚀 How to Boost Your Buying Power
If you’re just shy of qualifying for a $600,000 mortgage, here’s how to improve:
✔️ Improve Your Credit Score
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Pay bills on time
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Reduce credit card balances
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Dispute any errors on your report
✔️ Shop for Better Interest Rates
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Compare offers from 3–5 lenders
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Consider using a mortgage broker
✔️ Increase Your Income
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Take on a side hustle
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Ask for a raise
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Include spouse’s income if co-applying
✔️ Reduce Existing Debt
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Pay off credit cards, personal loans, or car loans before applying
❓ Can You Afford a $600,000 House on a $100,000 Salary?
Short answer: Probably not comfortably.
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With a $100,000 salary, 28% = ~$2,333/month
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A $600,000 loan payment = ~$3,990/month
➡️ You’d be at almost 48% of income for housing alone, which is too risky for most lenders.
Alternative:
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Buy a $375,000–$400,000 home
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Or make a large down payment
🏦 Are There Loan Types That Won’t Lend You $600,000?
Yes. Some government-backed loans have limits:
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FHA loan limit (2025): ~$498,000 in most areas
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VA and USDA loans may limit based on region and eligibility
✅ Conventional and jumbo loans are your best bet for $600K homes.
💸 What Will a $600,000 Mortgage Cost You Monthly?
Assuming:
7% interest
30-year fixed
$0 down payment
🧾 Monthly Breakdown:
| Component | Estimated Cost |
|---|---|
| Principal & Interest | $3,990 |
| Property Taxes | $500–$700 |
| Homeowners Insurance | $100–$150 |
| PMI (if <20% down) | $200–$400 |
➡️ Estimated Total: $4,800–$5,200/month
FAQ (Plain Text Format)
Q1. How much income do I need for a $600,000 mortgage?
A: You’ll need an estimated annual income of $170,000 to afford a $600,000 mortgage, assuming a 7% interest rate and no major debts.
Q2. Can I afford a $600,000 home on a $100,000 salary?
A: Probably not. Your housing cost would exceed 40% of your income, making it risky for lenders to approve your loan.
Q3. How does the down payment affect affordability?
A: A higher down payment lowers your monthly payment and eliminates the need for private mortgage insurance (PMI), making your loan more affordable.
Q4. What’s included in a $600,000 mortgage monthly cost?
A: Monthly costs typically include principal and interest (~$3,990), property taxes, homeowners insurance, and possibly PMI, totaling $4,800–$5,200 per month.
A $600,000 mortgage is possible — but only if your income, debt, credit, and down payment are in line. For most buyers, you’ll need at least $170,000+ in annual income, a good credit score, and manageable debt.
