Kenna Real Estate Group · Colorado buyers
Can I Afford a Home at 7%? The Real Colorado Payment, Line by Line
Take one real $600,000 home in Parker and see the full monthly payment at 5.5%, 6%, 6.5%, 7% and 7.5%. Then see the four ways buyers are cutting that payment right now.
A live person answers. Not a robot, not a phone tree.
The short answer
At 7%, a $600,000 Colorado home with 20% down costs about $3,800 a month all in. Half a point on the rate moves that payment about $155 a month. The bigger levers are the down payment, the seller, the builder and the loan type, and all four are in play in this market. Below is a real home, priced line by line, so you can see it.
The example home
$600,000
12772 Henson Creek St, Parker
4 bed, 4 bath, 1,982 sq ft, no HOA, 70 days on the market. See the listing.
Payment at 7%
$3,801
20% down, all in
$3,193 principal and interest + $261 taxes + $347 insurance.
Per half point
$155
a month
That is the whole difference between 6.5% and 7% on this home.
What sellers give
63%
of Denver sales
include a seller concession, averaging about $10,000. That buys the rate down.
What does a $600,000 home cost per month at 5.5%, 6%, 6.5%, 7% and 7.5%?
The table is principal and interest on a 30-year fixed loan. Taxes and insurance are added below it. Look across a row: the jump from 5.5% to 7.5% is real, but each half point is smaller than most buyers think.
| Rate | 5.5% | 6.0% | 6.5% | 7.0% | 7.5% |
|---|---|---|---|---|---|
| 20% down ($480,000 loan) | $2,725 | $2,878 | $3,034 | $3,193 | $3,356 |
| 5% down ($570,000 loan) | $3,236 | $3,417 | $3,603 | $3,792 | $3,986 |
| 3.5% down FHA ($579,000 loan) | $3,287 | $3,471 | $3,660 | $3,852 | $4,048 |
The full payment on this home at 7%
| Line | 20% down | 5% down | 3.5% FHA |
|---|---|---|---|
| Principal and interest | $3,193 | $3,792 | $3,852 |
| Property tax ($3,130 a year on this home) | $261 | $261 | $261 |
| Homeowners insurance (Colorado average $4,164 a year) | $347 | $347 | $347 |
| Mortgage insurance | $0 | about $238 | about $265 |
| HOA | $0 | $0 | $0 |
| Total per month | $3,801 | $4,638 | $4,725 |
Run your own numbers on the Kenna mortgage calculator, or call 303-955-4220 and a live person runs them with you in five minutes.
What income do you need for a $600,000 house in Colorado?
About $135,000 to $150,000 a year with 20% down, and about $165,000 with 5% down. Lenders cap total debt at roughly 43% to 45% of gross income. A $3,800 payment plus a $500 car payment and $200 in other minimums is $4,500 of debt, which needs about $10,500 a month, or $126,000 a year, before student loans. Every $100 a month of other debt costs you about $17,000 of house.
The four things that lower the payment right now
1. A seller concession or rate buydown
63% of Denver-area sales this year include a seller concession, averaging about $10,000. Used as a 2-1 buydown, that money cuts your rate 2 points in year one and 1 point in year two. On the 20% down example that is a payment near $2,590 in year one instead of $3,190. Read how to ask for a concession or buydown.
2. A builder incentive
Builders sit on a 15-year inventory peak and are paying closing costs and buying down rates on quick move-in homes. The builder rate sits well below the market rate on most quick move-in homes. See which builders are offering incentives and new construction homes for sale.
3. Down payment assistance
CHFA offers up to $25,000 in down payment help, and buyers in Adams, Arapahoe, Denver, Douglas and Jefferson counties can stack another $15,000 through NeighborhoodLIFT. Income limits apply, and a home buyer class is required. Start with the first-time buyer guide and FHA and VA buying.
4. An assumable loan
FHA and VA loans written in 2020 and 2021 carry rates in the 2s and 3s, and they transfer to the next buyer. You cover the seller's equity in cash or with a second loan. Search assumable mortgage homes for sale in Colorado and read how an assumption works.
Should I wait for rates to drop?
Waiting costs more than most buyers expect. When rates fall, buyers who stepped back step in again, and the concessions, price cuts and builder incentives that exist today shrink. Right now 57% of Denver listings carry a price cut and homes sit 53 days. That is leverage you have today. You can refinance a rate. You cannot refinance a purchase price.
Rent or buy in Colorado right now?
Renting costs less per month than buying in every large metro this year, Denver included. Buying wins when you stay five years or more, because the payment on a fixed loan does not rise and rents do. If your horizon is under three years, rent and keep saving. If it is five years or more, the numbers on this page are the ones that matter.
Get the payment worksheet
A one-page worksheet that prices any home the way this page prices the Parker example: rate, down payment, taxes, insurance, HOA, metro district, mortgage insurance and the income you need. Fill in the form below and we email it today.
Get the guide by email Use the form at the bottom of this page. We send it the same day, and a live person follows up once.Homes that fit the payment
- Search every Colorado home
- Homes $400K to $600K in Denver
- Starter homes in Aurora
- Starter homes in Colorado Springs
- Homes with no HOA
- Townhomes in Denver
- Condos in Denver
- New construction in Parker
- FHA eligible homes
- VA eligible homes
- Rent to own homes
Want the payment on a specific house?
Text the address to 303-955-4220. A live person sends back the full monthly number, with taxes, insurance and any HOA or metro district, the same day.
Call or text 303-955-4220Get pre-approvedQuestions people ask
How much is the payment on a $600,000 house at 7%?
About $3,193 a month for principal and interest with 20% down, and about $3,801 with taxes and insurance on the Parker example home. With 5% down it is about $4,638 including mortgage insurance.
How much does a half point on the rate change the payment?
About $155 a month on a $480,000 loan. Going from 7% to 6.5% saves $159; going from 7.5% to 7% saves $163.
What income do I need to buy a $600,000 home in Colorado?
About $135,000 to $150,000 a year with 20% down and no other debt, and about $165,000 with 5% down. Car payments and student loans raise that quickly: every $100 a month of other debt removes about $17,000 of buying power.
Can the seller pay to lower my rate?
Yes. A seller credit can fund a 2-1 buydown or permanent points. 63% of Denver-area sales this year include a seller concession averaging about $10,000.
Is it better to wait for rates to fall?
Rates can be refinanced later; the purchase price cannot. Today 57% of Denver listings have cut their price and sellers are paying concessions. When rates fall, that leverage shrinks.
What is the cheapest way into a home at today's rates?
An assumable FHA or VA loan from 2020 or 2021, a builder buydown on a new home, or CHFA down payment assistance stacked with a seller concession. Each one is explained above with a link.