A generally accepted rule of thumb is that your mortgage shouldn’t be more than three times your annual income.
So if you make $165,000 in household income, a $500,000 house is the very most you should get.
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.
What is the monthly payment on a 500k mortgage?
Monthly payments on a $500,000 mortgage
At a 4% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $2,387.08 a month, while a 15-year might cost $3,698.44 a month.
How much deposit do I need for a 500k house?
If you have a deposit of over 20%, you can avoid the extra costs of Lenders Mortgage Insurance. Use our deposit/equity calculator to work out the deposit you will need.
Example of deposit amounts.
|Property Purchase Price||Minimum Deposit %|
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What salary do you need to afford a 600k house?
Most lenders require that you’ll spend less than 28% of your pretax income on housing and 36% on total debt payments. If you spend 25% of your income on housing and 40% on total debt payments, they’ll consider the higher number and the amount you can qualify for will be lower as a result.