How much house can I afford on $150,000 a year?
- Principal & interest
- $2,832
- Property tax & insurance (est.)
- $677
- Loan amount
- $448,000
- Total interest over 30 years
- $571,399
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $636,000 | $509,000 | $2,731 |
| 5.50% | $609,000 | $487,000 | $2,765 |
| 6.00% | $583,000 | $466,000 | $2,796 |
| 6.50% | $559,000 | $447,000 | $2,825 |
| 7.00% | $536,000 | $429,000 | $2,852 |
| 7.50% | $515,000 | $412,000 | $2,878 |
| 8.00% | $494,000 | $396,000 | $2,903 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $559,000 |
| $300 | $559,000 |
| $500 | $559,000 |
| $800 | $559,000 |
| $1,200 | $527,000 |
Frequently asked questions
How much house can I afford making $150,000 a year?
About $559,000, assuming 20% down ($112,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $3,500 per month, 28% of your $12,500 gross monthly income.
What mortgage payment can I afford on $150k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $3,500 per month — and all debts combined at 36%, or $4,500 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $1,000 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $559,000.
Related
Assumes 20% down (no PMI), 1.1% property tax and 0.35% insurance per year, and the 28/36 debt-to-income guideline. Lenders also weigh credit score, reserves and loan type. Educational estimate, not financial advice. Methodology.