# How much money do you need to buy a 500K house?

Asked by: Dr. Albin Flatley PhD  |  Last update: February 9, 2022

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.

## How much should I have saved to buy a 500k house?

The amount of your down payment is determined, in part, on the loan type you choose. For FHA loans, a down payment of 3.5% is required for maximum financing. So for the same \$500,000 home, you would need to come up with at least \$17,500.

## How much should I put down on a 500k house?

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.

## What salary do you need to buy a 400k house?

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.)

## Can I afford a 500k house?

How Much Income Do I Need for a 500k Mortgage? You need to make \$153,812 a year to afford a 500k mortgage. We base the income you need on a 500k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about \$12,818.

## How much is the monthly payment on a \$500,000 house?!? Let's Calculate the payment pt2

42 related questions found

### How do I qualify for 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.

### How much should you put down on a \$12000 car?

“A typical down payment is usually between 10% and 20% of the total price. On a \$12,000 car loan, that would be between \$1,200 and \$2,400. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.

### How much money should I save before buying a house?

When saving up for a home, it's key to have a reserve of cash savings — or an emergency fund — that isn't used for the down payment or closing costs. It's a good idea to have at least 3-6 months of living expenses saved up in this cash reserve.

### How much money should I have saved by 21?

The general rule of thumb is that you should save 20% of your salary for retirement, emergencies, and long-term goals. By age 21, assuming you have worked full time earning the median salary for the equivalent of a year, you should have saved a little more than \$6,000.

### How much should you have saved by 30?

By age 30, you should have saved close to \$47,000, assuming you're earning a relatively average salary. This target number is based on the rule of thumb you should aim to have about one year's salary saved by the time you're entering your fourth decade.

### How much money should I have saved by 25?

By age 25, you should have saved at least 0.5X your annual expenses. The more the better. In other words, if you spend \$50,000 a year, you should have about \$25,000 in savings. If you spend \$100,000 a year, you should have at least \$50,000 in savings.

### Can I buy a house making 40k a year?

While buyers may still need to pay down debt, save up cash and qualify for a mortgage, the bottom line is that buying a home on a middle-class salary is still possible — in some places. Below, check out 15 cities where you can become a homeowner while earning \$40,000 a year or less.

### Can I buy a house making 25k a year?

HUD, nonprofit organizations, and private lenders can provide additional paths to homeownership for people who make less than \$25,000 per year with down payment assistance, rent-to-own options, and proprietary loan options.

### How do you know if you can afford a house?

To calculate 'how much house can I afford,' a good rule of thumb is using the 28%/36% rule, which states that you shouldn't spend more than 28% of your gross monthly income on home-related costs and 36% on total debts, including your mortgage, credit cards and other loans like auto and student loans.

### How can I pay my house off in 10 years?

Expert Tips to Pay Down Your Mortgage in 10 Years or Less
1. Purchase a home you can afford. ...
2. Understand and utilize mortgage points. ...
3. Crunch the numbers. ...
4. Pay down your other debts. ...
5. Pay extra. ...
6. Make biweekly payments. ...
7. Be frugal. ...
8. Hit the principal early.

### How much is 3 down payment on a house?

For example, if a mortgage lender requires a 3 percent down payment on a \$250,000 home, the homebuyer must pay at least \$7,500 at closing. A down payment reduces the amount the buyer needs to borrow to buy the home.

### What mortgage can I afford with my salary?

A good rule of thumb is that your total mortgage should be no more than 28% of your pre-tax monthly income. You can find this by multiplying your income by 28, then dividing that by 100.

### Is 800 a high car payment?

A good starting point is your budget. Experts say your total car expenses, including monthly payments, insurance, gas and maintenance, should be about 20 percent of your take-home monthly pay. ... Then a safe estimate for car expenses is \$800 per month.

### How much should I put down on a 20k car?

A good rule of thumb for a down payment on a new car loan is 20% of the purchase price. A down payment of 20% or more is a way to avoid being “upside down” on your car loan (owing more on the car than it's worth).

### How much income do I need for a 450k mortgage?

You need to make \$138,431 a year to afford a 450k mortgage. We base the income you need on a 450k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about \$11,536. The monthly payment on a 450k mortgage is \$2,769.

### Can I afford 650000 house?

How Much Income Do I Need for a 650k Mortgage? You need to make \$199,956 a year to afford a 650k mortgage. ... In your case, your monthly income should be about \$16,663. The monthly payment on a 650k mortgage is \$3,999.

### How much income do you need to buy a \$450 000 house?

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.

### Is 150K a good salary?

\$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.