How much house can I afford on $230,000 a year?
- Principal & interest
- $4,323
- Property tax & insurance (est.)
- $1,033
- Loan amount
- $684,000
- Total interest over 30 years
- $872,404
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $975,000 | $780,000 | $4,188 |
| 5.50% | $933,000 | $747,000 | $4,239 |
| 6.00% | $894,000 | $715,000 | $4,287 |
| 6.50% | $857,000 | $685,000 | $4,332 |
| 7.00% | $822,000 | $657,000 | $4,374 |
| 7.50% | $789,000 | $631,000 | $4,413 |
| 8.00% | $758,000 | $607,000 | $4,451 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $857,000 |
| $300 | $857,000 |
| $500 | $857,000 |
| $800 | $857,000 |
| $1,200 | $857,000 |
Frequently asked questions
How much house can I afford making $230,000 a year?
About $857,000, assuming 20% down ($171,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $5,367 per month, 28% of your $19,167 gross monthly income.
What mortgage payment can I afford on $230k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $5,367 per month — and all debts combined at 36%, or $6,900 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $1,533 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $857,000.
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.