Score: 4.1/5 (16 votes)

Following this rule, if you make $125,000 before taxes, you should be able to afford **up to $35,000 in housing expenses per year** — or about $2,916 per month.

According to the 28/36 rule, prospective homeowners with a $120,000 income can afford **a $1 million home on a 30-year fixed mortgage**.

I make $130,000 a year. How much house can I afford? You can afford **a $442,000 house**.

If you earn $125,000 a year, then you **make more than five out of every six American households**, and unless you live in a particularly high-cost area of the country, you'll have ample financial resources to save money toward building up a retirement nest egg.

Earning **$100,000 is not considered rich either**. You are considered middle class to lower middle class in expensive coastal cities. $100,000 is considered upper middle class in lower cost areas of the country. ... Earning $100,000 a year is definitely not considered rich.

On an individual level, **$100,000 is a lot of money**, especially as a lump sum. Above that, it very quickly becomes an insubstantial value.

Another rule to adhere to when determining how much home you can afford is that your monthly mortgage payment should not surpass 28% of your monthly income. For example, if you make $100,000 per year, your **monthly mortgage payment should not exceed $2,333**.

I make $140,000 a year. How much house can I afford? You can afford **a $476,000 house**.

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**.

What income is required for a 400k mortgage? To afford a $400,000 house, borrowers need $55,600 in cash to put 10 percent down. With a 30-year mortgage, your monthly income should **be at least $8200** and your monthly payments on existing debt should not exceed $981. (This is an estimated example.)

For homes in the $800,000 range, which is in the medium-high range for most housing markets, DollarTimes's calculator recommends buyers bring in **$119,371 before tax**, assuming a 30-year loan with a 3.25% interest rate.

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.

$100,000 could conceivably get you into **a home priced close to $1 million** if you have enough income to qualify. The loan I have described above is a “non-conforming” loan. This means that Fannie Mae or Freddie Mac will not purchase it because of its size.

A $100,000 **down payment** puts you in a good position to afford a significant amount of house in most parts of the country, but if you have a poor credit score, your bank may lend you less money than someone with a great credit score and a $100,000 down payment.

If you make $100,000 per year, your hourly salary would be **$51.28**. 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. ... Lenders want your principal, interest, taxes and insurance – referred to as PITI – to be 28 percent or less of your gross monthly income.

$150,000 USD annual income will allow you to live very nicely in many places of the USA. However, one always needs to be Frugal with their resources, and only buy or rent what you Need/Require. Additionally, $150K **annual income will be fine for a person with a spouse**.

$150k income should be able get you **a $700k mortgage** with that $350k down on a $1M property. There are a handful of 3bd/2ba homes in Pasadena for less than $1M. A $700k mortgage with $300k down on a $1M property will cost you about $3k in mortgage and interest with a fixed 30 year. Plus another $1k a month in taxes.

Don't spend more than 5–6 times your annual income on a home. This is a simpler calculation which says you need an annual income of **$125,000 to $150,000** to afford a $750,000 home. This calculation assumes that your mortgage interest rate is 4–5%.

“**By the time you hit 33 years old**, you should have $100,000 saved somewhere. Make that your goal. Thirty-three [and] $100,000,” O'Leary tells CNBC Make It.

What it means to have 100,000 in savings? Having a 100k in savings or investments might mean quite a bit to you. It could be a **number of years expenses** depending on your lifestyle costs. This could mean you could take one or more years off work or work part-time because you don't need the money.

- Try your hand in the stock market.
- Capitalize on the hot real estate market.
- Store same money away in retirement accounts.
- Reach out to the community with Peer-to-Peer (P2P) lending.
- Get help with your investments.

A 30 yr mortgage for 130 000 at 4.125 would carry a principle and interest payment of 630.04. So if you follow the 25 **of income rule your monthly salary should be 2,525.00**. However there are other factors to consider. If you have other debt that takes your ratios higher i.e. car payments credit cards student loans etc.

A down payment: You should have a down payment equal to 20% of your home's value. This means that to afford a $300,000 house, you'd need **$60,000**. Closing costs: Typically, you'll pay around 3% to 5% of a home's value in closing costs. On a $300,000 home, you'd need $9,000 to $15,000.

A $300k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an **annual income of $74,581** to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.