# Question: 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 house can I afford if I make 90000 a year?

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.

### What salary do you need to buy a 400k house?

To afford a \$400,000 house, for example, you need about \$55,600 in cash if you put 10% down. With a 4.25% 30-year mortgage, your monthly income should be at least \$8178 and (if your income is \$8178) your monthly payments on existing debt should not exceed \$981.

## How much house can you afford if you make 80000 a year?

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 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 house can I afford on my salary?

If you earn \$56,516 in annual income, that means your monthly house payment should be no more than \$1,695, according to the 36% rule. The rule, which measures your debt relative to your income, is used by lenders to evaluate how much house you can afford.

### How much house can I afford on \$60 000 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.

## How much money should I put down on a house?

Even conventional bank loans are often approved with down payments as low as 5% for loans up to \$417,000. If the loan size is higher than \$417,000, banks and other mortgage lenders usually ask for another 5% down. Still, there is an upside in making a 20% down payment on a house.

### How much would a mortgage be on a 150 000 House?

So, for a 30 year mortgage at 6.5% interest, your monthly payment for \$150,000 would be \$948.10 for Principal and Interest on the loan. In addition, you will have to pay your taxes and homeowner’s insurance. If your taxes are \$2400 per year, divide that amount by 12 months = \$200 per month.

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