So, if you make $80,000 a year, you should be looking at homes priced between $240,000 to $320,000.
You can further limit this range by figuring out a comfortable monthly mortgage payment.
To do this, take your monthly after-tax income, subtract all current debt payments and then multiply that number by 25%.
How much house can I afford on 120k salary?
Some experts suggest that you can afford a mortgage payment as high as 28% of your gross income. If true, a couple who earn a combined annual salary of $100,000 can afford a monthly payment of about $2,300/month. That could translate to a $450,000 loan, assuming a 4.5% 30-year fixed rate.
How much house can I afford if I make 40000 a year?
Take a homebuyer who makes $40,000 a year. The maximum amount for monthly mortgage-related payments at 28% of gross income is $933. ($40,000 times 0.28 equals $11,200, and $11,200 divided by 12 months equals $933.33.)
How much mortgage can I get if I earn 30000 a year?
Traditionally, mortgage lenders applied a multiple of your income to decide how much you can borrow. So if you earn £30,000 per year and the lender will lend four times this, they may be willing to lend £120,000.
How much house can you afford if you make 200 000 a year?
Simply take your gross income and multiply it by 2.5 or 3, to get the maximum value of the home you can afford. For somebody making $100,000 a year, the maximum purchase price on a new home should be somewhere between $250,000 and $300,000.
How much can I spend on a house if I make 60000 a year?
The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. That’s a $120,000 to $150,000 mortgage at $60,000. You also have to be able to afford the monthly mortgage payments, however.
Photo in the article by “Flickr”