How much house can I afford on $30,000 a year?
- Principal & interest
- $556
- Property tax & insurance (est.)
- $133
- Loan amount
- $88,000
- Total interest over 30 years
- $112,239
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $127,000 | $102,000 | $546 |
| 5.50% | $122,000 | $97,000 | $553 |
| 6.00% | $117,000 | $93,000 | $559 |
| 6.50% | $112,000 | $89,000 | $565 |
| 7.00% | $107,000 | $86,000 | $570 |
| 7.50% | $103,000 | $82,000 | $576 |
| 8.00% | $99,000 | $79,000 | $581 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $112,000 |
| $300 | $96,000 |
| $500 | $64,000 |
| $800 | $16,000 |
| $1,200 | $0 |
Frequently asked questions
How much house can I afford making $30,000 a year?
About $112,000, assuming 20% down ($22,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $700 per month, 28% of your $2,500 gross monthly income.
What mortgage payment can I afford on $30k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $700 per month — and all debts combined at 36%, or $900 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $200 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $16,000.
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.