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.
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.
What mortgage can I afford on 70k?
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 kind of house can I afford making 65k?
He also says that your mortgage payments, including insurance and taxes, should be no more than 25% of your take-home pay.
5. The Dave Ramsey Mortgage.
|Gross Income||Monthly Take-Home||Maximum Monthly Payment|
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What mortgage can I afford on 40k?
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.)