If you had mentioned a $1 million house to me when I was younger, I probably would have pictured something that looked like Lorelai Gilmore’s childhood house in “Gilmore Girls” or the Banks’ home in “The Fresh Prince of Bel-Air.” The concept seemed almost comically fancy and expensive to me.
A $1 million home isn’t exactly abnormal in 2026, though, especially on the West Coast. The median price of a home exceeds $1 million in metro areas such as San Diego, San Jose, and San Francisco, according to Redfin data. And the median isn’t much lower in places like Los Angeles and Seattle.
With average mortgage rates sitting at well over 7%, the monthly mortgage payment on a $1 million house is no joke. Redfin data also showed that the median housing payment for homebuyers was the second-highest on record during the four-week period ending Oct. 18: $2,796.
To know whether you can truly afford a $1 million home in today’s housing market, you need to know what the monthly payment would be.
The monthly payment on a 30-year mortgage for a $1 million house
The monthly mortgage payment on a $1 million house depends on a couple of factors. One of the most important is the term length of your mortgage loan.
Mortgage lenders typically offer lower mortgage rates on shorter terms, but the most popular term length is 30 years. The average 30-year fixed mortgage rate was 7.32% as of Oct. 22, according to Freddie Mac.
Another crucial factor when calculating your monthly payment is your down payment amount. Ideally, you’d be able to afford a 20% down payment, but I understand that is unattainable for a lot of homebuyers. So, I’ll give two examples: one with a 20% down payment and one with a 10% down payment.
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(And if you plan to put down less than 10%, that’s okay, as long as you can comfortably afford the monthly payment.)
Let’s start with a 30-year mortgage with a 7.32% rate. With a 20% down payment, your mortgage would be for $800,000. When I enter the numbers into the Redfin mortgage calculator, it shows that your monthly mortgage payment toward principal and interest would be $5,495.
With 10% down on a 30-year mortgage, the monthly payment toward principal and interest goes up to $6,182.
The monthly payment on a 15-year mortgage for a $1 million house
The national average 15-year fixed mortgage rate was 6.68% as of Oct. 22, according to Freddie Mac. Mortgage lenders typically offer lower interest rates on shorter terms. However, because you’re paying off the same principal in half the time, your monthly payment is higher.
With a 15-year mortgage, 20% down payment, and 6.68% rate, your monthly payment toward the principal and interest on a $1 million home would be $7,048.
With 10% down, the monthly mortgage payment toward the principal and interest increases to $7,929.
Your monthly payment on a $1 million house will be higher if your down payment is lower and your loan term is shorter.Organic Media / Getty Images
Don’t forget property taxes and insurance
With a 30-year mortgage and 20% down payment, the Redfin calculator puts your monthly payment at $6,937 after property taxes and homeowners’ insurance. And that’s assuming you don’t have to pay any homeowners association (HOA) dues.
With a 10% down payment and a 30-year mortgage, the monthly payment on a $1 million home goes up to $8,187. That’s because if you put less than 20% down on a conforming conventional loan, you also have to pay for private mortgage insurance (PMI).
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For a 15-year mortgage with 20% down, the monthly payment goes up to $8,490 once you add property taxes and homeowners’ insurance. If you have a 10% down payment (which results in PMI), it becomes $9,933.
Remember, the calculator’s numbers for property taxes, homeowners’ insurance, and PMI are only estimates. The actual numbers heavily rely on where you live.
How to get a lower monthly payment on a $1 million house
Do the above numbers seem a little daunting? Here are some tips for snagging a lower monthly payment when buying a $1 million home:
Choose a longer mortgage term. As I mentioned, even though interest rates are higher on a longer-term mortgage, the monthly payment is lower because you’re spreading out the payments. Consider a 30-year or even 40-year mortgage. Just know that the tradeoffs are paying more in interest overall and staying in debt for longer.
Improve your credit score. Lenders generally reward higher credit scores with lower mortgage rates. According to October Curinos data obtained by Experian, the average 30-year mortgage rate for someone with a 620 FICO score is 8.15%, but it drops to 7.46% with a 780 score. (The Curinos data assumes a $350,000 mortgage.)
Buy discount points. A discount point, sometimes called a “mortgage point,” is a fee you pay at closing to lower your mortgage rate for your entire loan term. Typically, you’ll pay 1% of your loan amount for one discount point, which will lower your rate by 0.25%. Let’s say you take out an $800,000 loan on a $1 million home, and your rate is 7.32%. One discount point would cost $8,000 up front, and your new interest rate would be 7.07%.
Consider a less expensive home. You may discover that you simply cannot comfortably afford a $1 million home at this point in your life. Consider buying a more affordable home so you don’t become “house poor” and end up spending all your money on monthly payments. You want to be able to enjoy other aspects of your life, too.
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