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Keep in mind, an income of **$113,000 per year** is the minimum salary needed to afford a $500K mortgage.

A good rule of thumb is that the maximum cost of your house should be no more than 2.5 to 3 times your total annual income. This means that if you wanted to purchase a $500K home or qualify for a $500K mortgage, your minimum salary should fall **between $165K and $200K**.

The standard is that **a person or household should spend above triple their pretax income on the mortgage to buy a house**. Thus, the person who wants to spend 500k on the house should earn around 166 – 170k annually to afford the mortgage on the house comfortably.

Home Costs, Worth and Mortgage Are Substantial Indicators

In other words, **if you're worth $500,000 and your home constitutes $450,000 of that, you're middle class**.”

On a $70,000 income, you'll likely be able to afford a home that costs **$280,000–380,000**. The exact amount will depend on how much debt you have and where you live — as well as the type of home loan you get.

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%, and up to 20%, of your future home's purchase price. Add that amount to your maximum mortgage amount, and you have a good idea of the most you can spend on a home.

You need to make **$240,520 a year** to afford a 650k mortgage. We base the income you need on a 650k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $20,043. The monthly payment on a 650k mortgage is $4,810.

You can afford a **$225,000 house**.

- Purchase a home you can afford.
- Understand and utilize mortgage points.
- Crunch the numbers.
- Pay down your other debts.
- Pay extra.
- Make biweekly payments.
- Be frugal.
- Hit the principal early.

If you have a 20% down payment on a $100,000 household salary, you can probably comfortably afford a **$560,000 condo**. this number assumes you have very little debt and $112,000 in the bank.

Safe debt guidelines

So start by doing the math. If you make $50,000 a year, your total yearly housing costs should ideally be no more than $14,000, or $1,167 a month. If you make $120,000 a year, you can go up to **$33,600 a year, or $2,800 a month**—as long as your other debts don't push you beyond the 36 percent mark.

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.

I make $65,000 a year. How much house can I afford? You can afford a **$195,000 house**.

I make $90,000 a year. How much house can I afford? You can afford a **$270,000 house**.

What income is required for a 600k mortgage? To afford a house that costs $600,000 with a 20 percent down payment (equal to $120,000), you will need to earn **just under $90,000 per year before tax**. The monthly mortgage payment would be approximately $2,089 in this scenario.

Assuming the best-case scenario — you have no debt, a good credit score, $90,000 to put down and you're able to secure a low 3.12% interest rate — your monthly payment for a $450,000 home would be $1,903. That means your annual salary would need to be **$70,000 before taxes**.

This was the basic rule of thumb for many years. Simply **take your gross income and multiply it by 2.5 or 3** to get the maximum value of the home you can afford. For somebody making $100,000 a year, the maximum purchase price on a new home should be somewhere between $250,000 and $300,000.

You can afford a **$255,000 house**.

If you make $80,000 per year, your hourly salary would be **$41.03**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.

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.

A salary of $70,000 equates to a monthly pay of $5,833, weekly pay of $1,346, and an hourly wage of **$33.65**.

Depending on the size of your family, **$80,000 can comfortably cover living expenses and beyond**. According to the U.S census as of 2020, the median salary for a four-person household is $68,400 per year, making 80K a substantially higher income than that of the average American.

If the home price is $500,000, a **20%** down payment is equal to $100,000, resulting in a total mortgage amount of $400,000 ($500,000 - $100,000). The average down payment in the US is about 6% of the home value.

$120,000 a year is how much per hour? If you make $120,000 per year, your hourly salary would be **$61.54**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.