How much house can I afford on $200,000 a year?
- Principal & interest
- $3,767
- Property tax & insurance (est.)
- $900
- Loan amount
- $596,000
- Total interest over 30 years
- $760,165
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $848,000 | $678,000 | $3,642 |
| 5.50% | $812,000 | $649,000 | $3,686 |
| 6.00% | $777,000 | $622,000 | $3,728 |
| 6.50% | $745,000 | $596,000 | $3,767 |
| 7.00% | $715,000 | $572,000 | $3,803 |
| 7.50% | $686,000 | $549,000 | $3,838 |
| 8.00% | $659,000 | $527,000 | $3,870 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $745,000 |
| $300 | $745,000 |
| $500 | $745,000 |
| $800 | $745,000 |
| $1,200 | $745,000 |
Frequently asked questions
How much house can I afford making $200,000 a year?
About $745,000, assuming 20% down ($149,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $4,667 per month, 28% of your $16,667 gross monthly income.
What mortgage payment can I afford on $200k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $4,667 per month — and all debts combined at 36%, or $6,000 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $1,333 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $745,000.
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.