How much house can I afford on $170,000 a year?
- Principal & interest
- $3,211
- Property tax & insurance (est.)
- $767
- Loan amount
- $508,000
- Total interest over 30 years
- $647,926
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $721,000 | $577,000 | $3,096 |
| 5.50% | $690,000 | $552,000 | $3,133 |
| 6.00% | $661,000 | $528,000 | $3,168 |
| 6.50% | $633,000 | $507,000 | $3,202 |
| 7.00% | $607,000 | $486,000 | $3,233 |
| 7.50% | $583,000 | $467,000 | $3,262 |
| 8.00% | $560,000 | $448,000 | $3,290 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $633,000 |
| $300 | $633,000 |
| $500 | $633,000 |
| $800 | $633,000 |
| $1,200 | $623,000 |
Frequently asked questions
How much house can I afford making $170,000 a year?
About $633,000, assuming 20% down ($127,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $3,967 per month, 28% of your $14,167 gross monthly income.
What mortgage payment can I afford on $170k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $3,967 per month — and all debts combined at 36%, or $5,100 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $1,133 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $633,000.
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.