Adding another 140k+ to that isn't going to help you. Yes, a paid-off home will help you in retirement. The home affordability calculator from realtor.com® helps you estimate how much house you can afford. A good rule of thumb is to spend no more than 28% of your pre-tax income on your mortgage payment. Typically you want to go no higher than 3X your annual salary on a home purchase. Getting something cheaper than that, that is also not in a bad area, is unrealistic. So let's say a conservative net annual salary is going to be $115,000 annually divided by 12= $9583 monthly ($9600). You would want to put 20% down to avoid PMI. Anything more and you'll likely end up house poor. You can determine how much house you can afford by following three simple rules based on different percentages of your monthly income. I don’t care about money for traveling or going out a lot, etc. Depending on how much you want your monthly payment to be and how much you have to put down, you can choose between a 15-year or a 30-year loan, and many lenders will create a loan for you with custom terms. Our house was in the $400-500K range when we bought, with income at about $150K and one child, no debt. A 1200sq/ft house in a middle-class neighborhood that is clean and safe is going to run you about 120-150k. Will a 150K salary be able to afford this… comfortably?? It assumes a fixed-rate mortgage. In looking at a basic IRS Calculator for $150,000.....no dependents, annual federal taxes alone was estimated at $30,000. You have to figure out what you’re eligible for to know the real number. I voted, however, for the $300-400K range because I prefer the comfort level for other, higher savings and bucket-list items. If I make $120,000, how much house can I afford? Very few people I know in my state makes more than 40-45k per year. Quickly find the maximum home price within your price range. With the shorter loan, you will get the very best interest rate, Brown says. That's a lot different from taking out a $424k loan (80%) on a $530k house on a $150k income. The rules of home affordability Mortgage lenders use something called qualification ratios to determine how much … Salary needed for 150,000 dollar mortgage. That’s the wrong question. But first: You’re asking your own question incorrectly. I do know, in my location, I could build my dream house for 400,000 –maybe even a bit less. Once taxes and benefits are taken out of your salary, the picture looks quite different. You probably mean “How much will a lender lend me?” But that’s not how much you can afford. Just to be clear, you're asking about taking out a $530k loan to buy a $730k house on a $150k income. But that doesn't mean that you should buy the most expensive home you can possibly afford. This page will calculate how much you need to earn to buy a house that costs $150,000. It was a reasonable expenditure, as we purchased for about $50K less than we were approved. Depending on these factors, you might afford a house from $180,000 to nearly $300,000 on a $50K salary. In your situation, You already have 50k of debt, along with 5k of credit card debt. Calculator for $ 150,000..... no dependents, annual federal taxes alone was estimated at 30,000... To avoid PMI the real number that is also not in a bad area, is.. Federal taxes alone was estimated at $ 30,000..... no dependents, annual federal taxes alone was estimated $. 400,000 –maybe even a bit less calculate how much you can afford by following three simple based... 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