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 $300,000.7 days ago
How much house can I afford if I make 70000 a year?
Some experts suggest that you can afford a mortgage payment as high as 28% of your gross income. If true, a couple who earn a combined annual salary of $100,000 can afford a monthly payment of about $2,300/month. That could translate to a $450,000 loan, assuming a 4.5% 30-year fixed rate.
How much can I borrow for a mortgage based on my income?
Most lenders require that you’ll spend less than 28% of your pretax income on housing and 36% on total debt payments. If you spend 25% of your income on housing and 40% on total debt payments, they’ll consider the higher number and qualify you for a smaller amount as a result.
Photo in the article by “Mount Pleasant Granary”