You need an income of $250k plus on average to qualify for a $1,000,000 mortgage. Buying a million-dollar mortgage with an income below $250k will either be very stressful or may fail completely. When making an income of $250k-$300k, you should try and negotiate for a 10% downpayment and nothing more. This is because when the percentage of the downpayment is high, it will leave you with very little money for other expenses. The more your income, the more you can have the ability to pay a higher percentage of the downpayment. You should also consider the following factors to be able to pay your mortgage to completion without any complications.
Factors To Consider When Buying A Million Dollar Mortgage
- Period of the mortgage. With an income of $250k-$300k, you should negotiate for a longer period to pay the monthly installments. Ensure that the period divides the money to comfortable portions that you can afford and still take care of other expenses.
- Transportation costs. You should be able to pay the downpayment and have more money left for transporting your belongings to the new house.
- Cost of furnishing: Moving into a larger house, you will need to have surplus money to cater for new furniture. The most challenging part about a house worth a million dollars is getting to fill the large space. There is no rush to do this but you will need to have basic furniture at first.
- The first monthly payments. The monthly installments will start being paid from the first month you move into the house after paying the downpayment. To be safe, you should pay the downpayment and still remain with a portion of your income to pay the monthly installments.
Other expenses like water, electricity, and renovation should also be considered.
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