Summary answer: On a $700,000 Alexandria home at 7.28%, the average 30-year rate in Freddie Mac's October 1, 2026 survey, your all-in monthly payment is roughly $4,644 with 20% down, $5,438 with 10% down, and $5,695 with 5% down, before any condo or HOA dues. The biggest pieces are principal and interest, then real estate tax at Alexandria's $1.135 per $100 rate, which is about $662 a month on this price. Insurance and mortgage insurance are estimates, so use a lender quote for the real number.
I'm Johnny with JQ Real Estate. Here is the payment broken apart so you can see what drives it and what you can change.
The payment, line by line
| Down Payment | Loan Amount | Principal and Interest | Real Estate Tax | Insurance (est.) | Mortgage Insurance (est.) | Total Monthly |
|---|---|---|---|---|---|---|
| 20% | $560,000 | $3,832 | $662 | $150 | $0 | $4,644 |
| 10% | $630,000 | $4,311 | $662 | $150 | $315 | $5,438 |
| 5% | $665,000 | $4,550 | $662 | $150 | $332 | $5,695 |
I assumed a 30-year fixed loan at 7.28%, a $1.135 tax rate on the full purchase price, $150 a month for homeowners insurance, and mortgage insurance of about 0.6% of the loan per year when the down payment is under 20%. Your quote will differ by credit score, loan type, and property type. Rates also change every week, and the 7.28% reading was up from 7.03% the week before.
What each piece is
- Principal and interest. The loan repayment itself. This is the biggest piece and the one most sensitive to rate.
- Real estate tax. Billed in two installments by the city, usually collected monthly through your lender's escrow account.
- Homeowners insurance. Varies by home age, location, and coverage. Get a quote before you make an offer.
- Mortgage insurance. Applies on conventional loans with less than 20% down and on all FHA loans.
- Condo or HOA dues. Not in the table. They are added to the payment and count in your qualifying ratio.
How rate changes move the number
On a $630,000 loan, the 10% down case, every quarter point of rate changes the principal and interest payment by about $106 a month. At the previous week's 7.03% the payment would have been $4,204 instead of $4,311. A buyer shopping a year ago, when Freddie Mac's average was about 6.34%, would have paid $3,916 on the same loan. That is why the same house felt more affordable last fall, even though the price has not dropped.
Ways to lower the payment
- Put more down. Moving from 10% to 20% removes mortgage insurance and shrinks the loan.
- Use a VA loan if eligible. No mortgage insurance, though there is a funding fee that can be financed.
- Ask for a rate buydown. A seller credit or paid points can lower the rate, at least for the early years.
- Shop insurance. Quotes vary meaningfully by carrier.
- Consider a townhome or condo. A lower price reduces every piece of the payment, but check the dues.
Is $700,000 realistic for your income?
Taking the 10% down total of $5,438 and the common 28% housing guideline, you would need gross income of about $233,057 a year, before accounting for other debts. Many lenders approve higher ratios when your debts are low and your credit is strong, and VA uses residual income in addition. If your income is below that range, a lower price or larger down payment can bring the payment back in line.
An example
A couple considers a $700,000 Old Town townhome with 10% down. The principal and interest payment is about $4,311, tax about $662, and the other pieces bring the total near $5,438. They have a $350 car payment and a $300 student loan payment, which count toward their back-end ratio. At a 43% limit, their combined gross income would need to be roughly $169,898 a year. If they use the city's assistance as a second trust with no monthly payment and bring a larger first-loan down payment, the numbers improve, but only if they qualify for the program.
Get your real payment
Reach out and I'll run the payment with a lender's actual rate quote, your tax bill at Alexandria's rate, and a real insurance estimate, so your number is built on facts instead of ranges.
For more Alexandria buyer and seller questions, visit our Alexandria real estate hub.