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.
How much do I need to make to afford a 250k house?
Your maximum mortgage payment (rule of 28)
The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out).
How much do I need to make to buy a 200k house?
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.
Is 60k a year good?
In most parts of the US you already have access to a very good and healthy life at 60k. You’ve pretty much covered everything commonly deemed as a necessity and you probably have some money left over for “entertainment”. According to the 2008 US Census, making 60k a year is in the top 20%.
What salary do you need to buy a 400k house?
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.