3.

The 36% Rule

Gross Income | 28% of Monthly Gross Income | 36% of Monthly Gross Income |
---|---|---|

$20,000 | $467 | $600 |

$30,000 | $700 | $900 |

$40,000 | $933 | $1,200 |

$50,000 | $1,167 | $1,500 |

4 more rows

## Can you get a mortgage making 20 000 a year?

At $20,000 a year in income, you are making $1,666 a month. Switching to a 5–1 ARM would drop your initial core mortgage payment down to $900 a month or still more than half your gross income before even considering property taxes and insurance. Even if you can get this mortgage, doing so is probably a very bad idea.

## How much house can I afford making $75000 a year?

So, if you have no debt and earn $75,000 a year, you should buy a home that costs no more than $295,000. But let’s say you have car payments, student loans and credit card payments all totaling $35,000 a year. In that case, the maximum you should spend on a home would be $160,000 ($75,000 minus $35,000 times four).

## 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 88000 a year?

How Much House Can I Afford If I Make 88000 a Year – The home affordability calculator will estimate how much home you can afford if you make $88,000 a year with options to include property tax, home insurance, HOA fees and more.