Monthly P&I Payment (6.4% · 20% down · 30yr)
$1,981
This is principal & interest only. Add taxes, insurance, HOA for the real total.
$80,000
Down Payment (20%)
$320,000
Loan Amount
$85K+
Salary Needed
The Real Cost Over 30 Years
💣 Total Loan Cost
Home price$400,000
You borrow$320,000
Total payments (30yr)$713,160
Interest paid to bank$393,160
Bank collects123% of loan in interest
The monthly payment of $1,981 is just the beginning. Add property taxes (~1-2% annually), homeowner's insurance (~$150-300/month), and HOA fees if applicable. The real all-in monthly cost on a $400K home is typically $2,476-$2,773/month.
What Salary Do You Need?
Using the standard 28% housing ratio, you need at least $85K/year in gross income to qualify for a $400K home — assuming no other debt. Every $500/month in existing debt payments (car, student loans, credit cards) reduces your buying power significantly.
See Your Real Numbers
Full amortization, all-in cost, lender comparison