How much house can I afford on $70,000 a year?
- Principal & interest
- $1,315
- Property tax & insurance (est.)
- $314
- Loan amount
- $208,000
- Total interest over 30 years
- $265,293
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $297,000 | $237,000 | $1,275 |
| 5.50% | $284,000 | $227,000 | $1,290 |
| 6.00% | $272,000 | $218,000 | $1,305 |
| 6.50% | $261,000 | $209,000 | $1,318 |
| 7.00% | $250,000 | $200,000 | $1,331 |
| 7.50% | $240,000 | $192,000 | $1,343 |
| 8.00% | $231,000 | $185,000 | $1,355 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $261,000 |
| $300 | $261,000 |
| $500 | $255,000 |
| $800 | $208,000 |
| $1,200 | $144,000 |
Frequently asked questions
How much house can I afford making $70,000 a year?
About $261,000, assuming 20% down ($52,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $1,633 per month, 28% of your $5,833 gross monthly income.
What mortgage payment can I afford on $70k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $1,633 per month — and all debts combined at 36%, or $2,100 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $467 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $208,000.
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.