How much house can I afford on $250,000 a year?
- Principal & interest
- $4,703
- Property tax & insurance (est.)
- $1,124
- Loan amount
- $744,000
- Total interest over 30 years
- $948,931
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $1,060,000 | $848,000 | $4,552 |
| 5.50% | $1,014,000 | $812,000 | $4,608 |
| 6.00% | $971,000 | $777,000 | $4,659 |
| 6.50% | $931,000 | $745,000 | $4,708 |
| 7.00% | $893,000 | $715,000 | $4,754 |
| 7.50% | $858,000 | $686,000 | $4,797 |
| 8.00% | $824,000 | $659,000 | $4,838 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $931,000 |
| $300 | $931,000 |
| $500 | $931,000 |
| $800 | $931,000 |
| $1,200 | $931,000 |
Frequently asked questions
How much house can I afford making $250,000 a year?
About $931,000, assuming 20% down ($186,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $5,833 per month, 28% of your $20,833 gross monthly income.
What mortgage payment can I afford on $250k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $5,833 per month — and all debts combined at 36%, or $7,500 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $1,667 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $931,000.
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.