How much house can I afford on $60,000 a year?
- Principal & interest
- $1,138
- Property tax & insurance (est.)
- $272
- Loan amount
- $180,000
- Total interest over 30 years
- $229,580
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $254,000 | $204,000 | $1,093 |
| 5.50% | $243,000 | $195,000 | $1,106 |
| 6.00% | $233,000 | $187,000 | $1,118 |
| 6.50% | $223,000 | $179,000 | $1,130 |
| 7.00% | $214,000 | $171,000 | $1,141 |
| 7.50% | $206,000 | $165,000 | $1,151 |
| 8.00% | $198,000 | $158,000 | $1,161 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $223,000 |
| $300 | $223,000 |
| $500 | $208,000 |
| $800 | $160,000 |
| $1,200 | $96,000 |
Frequently asked questions
How much house can I afford making $60,000 a year?
About $223,000, assuming 20% down ($45,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $1,400 per month, 28% of your $5,000 gross monthly income.
What mortgage payment can I afford on $60k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $1,400 per month — and all debts combined at 36%, or $1,800 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $400 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $160,000.
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.