## 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.