For a $750,000 home purchase, you typically need a deposit between $22,500 (3%) and $150,000 (20%). While 20% ($150,000) avoids Private Mortgage Insurance (PMI), many lenders accept lower down payments, such as 3.5% ($26,250) for FHA loans or even 3% ($22,500) for conventional loans.
Here's what you can expect to pay for both 15- and 30-year mortgage loan payments on a $750,000 loan using today's mortgage rates: 30-year fixed mortgage at 6.15%: $3,655.37 per month. 15-year fixed mortgage at 5.65%: $4,950.39 per month.
For a house priced at $750,000, this means you would need a minimum deposit of $150,000. This is calculated by multiplying $750,000 by 0.20 (20%). Therefore, to buy a house priced at $750,000 without incurring LMI, you would need to save at least $150,000 for the deposit.
Based on this calculation, to afford a $750,000 house with a 20% down payment and a 30-year mortgage at 7% interest, you would need to earn at least $172,800 per year. However, this is just a rough estimate, and your individual circumstances may vary.
So How Much More Do We Need to Put Down? Increase in down payment required on a $750,000 home is $12,500 ($50,000 is the required down payment).
Mortgage amount
Taxpayers can deduct the interest paid on qualified residences for up to $750,000 in total mortgage debt (the limit is $375,000 if married and filing separately). Any interest paid on first, second or home equity mortgages over this amount is not tax-deductible.
To afford a $700,000 house, you generally need an annual income between $180,000 to $235,000, depending on interest rates, down payment, and existing debts, with lenders often using the 28/36 rule (housing costs under 28% of gross income, total debt under 36%) to assess affordability. A 20% down payment ($140,000) is common, reducing your loan, but taxes, insurance, and other expenses add to the total monthly cost.
To afford an $800,000 mortgage, you generally need an annual income between $180,000 and $260,000, but this varies significantly with interest rates, your down payment, and existing debts; a good guideline is using the 28/36 rule (housing costs < 28% of gross income, total debts < 36%) to find your specific need. Higher interest rates and more debt mean you'll need a higher income to qualify.
For a house priced at $800,000, this means you would need a minimum deposit of $160,000. This 20% deposit reduces the lender's risk and eliminates the need for LMI, which is an insurance policy that protects the lender if the borrower defaults on the loan.
The minimum down payment for a conventional mortgage loan is 3% of the purchase price if you're a first-time home buyer, though many lenders will require a down payment of at least 5%. Conventional loans can be cheaper than FHA loans but come with stricter credit requirements.
Down payments reflect your commitment and financial stability, while credit scores demonstrate your creditworthiness and payment history. Both elements significantly impact loan approval, loan terms, and interest rates.
At the time of writing (December 2025), the average monthly repayments on a £750,000 mortgage are £4,384. This is based on current interest rates being around 5%, a typical mortgage term of 25 years, and opting for a capital repayment mortgage. Based on this, you would repay £1,315,328 over the mortgage term.
30-year rate at 7.04%: At this rate, your monthly payments would be $5,009.23. 15-year rate at 6.27%: At this rate, your monthly payments would be $6,438.85.
With a $1,200 monthly mortgage payment, the total home value you can afford depends heavily on your income, other debts, credit score, down payment, and current interest rates, but generally, it translates to roughly a $160,000 to $250,000 home if you have a strong financial profile and low existing debt, following the 28/36 rule (28% of gross income for housing, 36% for total debt).
For a $75,000 mortgage at 12% APR, compounded monthly, over 30 years, your principal and interest (P&I) monthly payment would be approximately $771.46, calculated using the standard loan amortization formula.
Most mortgages require a score of 620 or higher, but you still have options if you fall short.
Income to afford a $750K house
That equates to a monthly income of $14,400, with 28 percent of that amounting to $4,032. So $4,032 is the maximum you should spend on monthly housing costs, including principal, interest, property taxes, insurance premiums and any HOA fees. That's less than the $4,800 estimated above.
Ways to pay off your home loan faster
A strong credit score could help you secure a lower mortgage rate. You generally need a credit score of at least 620 to qualify for a conventional mortgage, though every lender is different. FHA loans, which are backed by the federal government, may be an option for individuals with credit scores as low as 500.