How much house can I afford on $180,000 a year?
- Principal & interest
- $3,388
- Property tax & insurance (est.)
- $810
- Loan amount
- $536,000
- Total interest over 30 years
- $683,638
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $763,000 | $611,000 | $3,278 |
| 5.50% | $730,000 | $584,000 | $3,317 |
| 6.00% | $699,000 | $560,000 | $3,355 |
| 6.50% | $670,000 | $536,000 | $3,390 |
| 7.00% | $643,000 | $514,000 | $3,423 |
| 7.50% | $617,000 | $494,000 | $3,454 |
| 8.00% | $593,000 | $475,000 | $3,483 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $670,000 |
| $300 | $670,000 |
| $500 | $670,000 |
| $800 | $670,000 |
| $1,200 | $670,000 |
Frequently asked questions
How much house can I afford making $180,000 a year?
About $670,000, assuming 20% down ($134,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $4,200 per month, 28% of your $15,000 gross monthly income.
What mortgage payment can I afford on $180k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $4,200 per month — and all debts combined at 36%, or $5,400 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $1,200 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $670,000.
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.