How much house can I afford on $300,000 a year?
- Principal & interest
- $5,638
- Property tax & insurance (est.)
- $1,347
- Loan amount
- $892,000
- Total interest over 30 years
- $1,137,697
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $1,272,000 | $1,018,000 | $5,463 |
| 5.50% | $1,217,000 | $974,000 | $5,529 |
| 6.00% | $1,166,000 | $933,000 | $5,591 |
| 6.50% | $1,117,000 | $894,000 | $5,650 |
| 7.00% | $1,072,000 | $857,000 | $5,705 |
| 7.50% | $1,029,000 | $823,000 | $5,757 |
| 8.00% | $989,000 | $791,000 | $5,805 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $1,117,000 |
| $300 | $1,117,000 |
| $500 | $1,117,000 |
| $800 | $1,117,000 |
| $1,200 | $1,117,000 |
Frequently asked questions
How much house can I afford making $300,000 a year?
About $1,117,000, assuming 20% down ($223,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $7,000 per month, 28% of your $25,000 gross monthly income.
What mortgage payment can I afford on $300k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $7,000 per month — and all debts combined at 36%, or $9,000 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $2,000 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $1,117,000.
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.