The rule of thumb I had heard was that your house payments (mortgage plus insurance plus property taxes) should not exceed 1/3 of your monthly income.
If you are currently making $60k this would mean house payment of <$1,666.
I always felt that 25% should be the upper limit, which would put you at the $1,250 range.
Can I buy a house if I make 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. You can cover a $1,400 monthly PITI housing payment if your monthly income is $5,000.
What house can I afford on 70k a year?
For the couple making $80,000 per year, the Rule of 28 limits their monthly mortgage payments to $1,866. Ideally, you have a down payment of at least 10 percent, and up to 20 percent, of your future home’s purchase price.
What can I afford with a 60k salary?
Necessities (50 Percent)
Your necessities budget should not exceed 50 percent of your monthly net income, which is about $1,875 for an annual salary of $60,000. They should not account for more than 30 percent of your monthly net income, or $1,125 for an annual salary of $60,000.
How much do I need to make to afford a 250k house?
To afford a house that costs $250,000 with a down payment of $50,000, you’d need to earn $43,430 per year before tax. The monthly mortgage payment would be $1,013. Salary needed for 250,000 dollar mortgage.
How much income do I need for a 200k mortgage?
This rule says that your mortgage payment (which includes property taxes and homeowners insurance) should be no more than 28% of your pre-tax income, and your total debt (including your mortgage and other debts such as car or student loan payments) should be no more than 36% of your pre-tax income.
Can I buy a house if I make 40k 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.)