How much house can I afford on my income?



How much house can I afford on my income?

The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28% of your gross monthly income . For example, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. What house can I afford on 40k a year?

How much should I pay for a house if I’m 80K?

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%.

Can I afford a mortgage?

The rule of thumb is you can afford a mortgage where your monthly housing costs are no more than 32% of your gross household income, and where your total debt load (including housing costs) is no more than 40% of your gross houshold income. This rule is based on your debt service ratios.

How much should my monthly mortgage payment be?

For example, it’s generally assumed that your monthly mortgage payment (principal, interest, taxes and insurance) should be no more than 28% of your gross monthly income. This ensures you have enough money for other expenses.

How much house can I afford on my income?



How much house can I afford on my income?

The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28% of your gross monthly income . For example, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. What house can I afford on 40k a year?

Can you afford the monthly mortgage payments?

You also have to be able to afford the monthly mortgage payments, however. Lenders want your principal, interest, taxes and insurance – referred to as PITI – to be 28 percent or less of your gross monthly income. You can cover a $1,400 monthly PITI housing payment if your monthly income is $5,000.

How much mortgage can I afford on 60k 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. Lenders want your principal, interest,…

How much should I pay for a house if I’m 80K?

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%.