How Much Mortgage Can I Afford?
Mortgage affordability isn't what the bank approves — it's what you can comfortably pay every month for 30 years. This guide walks through the real numbers and gives you a clear framework for picking your loan size.
Quick answer
As a rule of thumb, your total monthly housing payment (PITI + HOA) should stay under 28% of gross monthly income, and total debts under 36%. On a $75K salary, that's roughly a $1,750/month payment, supporting a mortgage near $240,000.
The two numbers that actually matter
Lenders run two debt-to-income (DTI) ratios on every application:
- Front-end DTI — housing costs as % of gross monthly income. Cap: 28%.
- Back-end DTI — all monthly debts (housing + car + student + minimum card payments) as % of gross monthly income. Cap: 36–43%.
Stay under both numbers and you'll have breathing room for emergencies, retirement, and a life. Push to the lender's max and every late paycheck becomes a crisis.
Mortgage size by income (28% rule, 6.5% rate)
- $50K salary → ~$1,170 housing budget → ~$155K mortgage
- $75K salary → ~$1,750 housing budget → ~$235K mortgage
- $100K salary → ~$2,330 housing budget → ~$310K mortgage
- $150K salary → ~$3,500 housing budget → ~$465K mortgage
- $200K salary → ~$4,670 housing budget → ~$620K mortgage
Numbers assume taxes and insurance run about 25% of the housing budget, leaving the rest for principal and interest. Higher property tax areas (NJ, TX, IL) will support smaller mortgages on the same income.
What changes your affordable mortgage
- Interest rate — every 1% higher cuts your max mortgage by ~10%
- Down payment — bigger down = no PMI, lower monthly
- Other debts — every $400 in monthly debts cuts ~$60K from your max mortgage
- Credit score — 740+ vs 660 can be a 0.5–1% rate difference
- Loan term — 15-year cuts your max significantly but saves enormous interest
Approved vs comfortable: the gap
A bank might approve you for a $400,000 mortgage on a $90,000 salary using 43% back-end DTI. Could you make the payment? Yes. Would you save anything, ever go out to eat, or sleep at night? Probably not.
If your principal + interest payment alone exceeds 25% of take-home pay (not gross), you're stretching. Below 20% is comfortable for most households.
Build your budget at the comfortable level first, then verify the lender will approve it. Reverse-engineer up from your lifestyle, not down from the max approval.
Worked example: $90K salary
Gross monthly: $7,500. Take-home after taxes/401k: ~$5,250.
- Lender max (43% DTI): ~$3,225/month all debts → ~$400K mortgage
- 28% rule: ~$2,100/month housing → ~$280K mortgage
- 25% of take-home P&I: ~$1,310/month P&I → ~$210K mortgage
The comfortable answer for this buyer is $220K–$280K, not $400K. Same salary, very different financial future.
Use the calculator
Find your exact mortgage budget
Run your income, debts, and down payment through our calculator for a personal comfortable mortgage estimate.
Open calculatorFrequently Asked Questions
What mortgage can I afford on $60K?
Roughly $150,000–$180,000 with average property taxes, 10% down, and a 6.5% rate. See our $60K affordability guide for the full breakdown.
Is 28% of gross or net?
The 28% rule uses gross income (pre-tax). If you want to be safer, use 25% of take-home pay as a sanity check — it accounts for taxes, healthcare, and retirement contributions.
How much mortgage can $1,500/month afford?
At a 6.5% rate, a $1,500/month principal+interest payment supports about a $237,000 mortgage. Add taxes and insurance and total monthly cost lands closer to $1,900.
Should I get pre-approved for the max?
No — pre-approval shows what the bank will lend, not what you should borrow. Tell the lender the amount that fits your real budget.
Does paying off debt increase my mortgage?
Yes, and significantly. Eliminating a $400/month car payment can boost your max approved mortgage by $50K–$70K because it frees up back-end DTI.
What about a 15-year mortgage?
A 15-year cuts the affordable mortgage size by about 25% on the same income, but the lifetime interest savings are huge. Most buyers split the difference by taking 30-year and making extra payments.
Related Guides
More reading from the Mortgage & Affordability library.
The 28/36 Rule Explained
What the 28/36 rule means, how lenders use it, and how to apply it to your own home buying decision — with examples by income.
Read guideMortgage & AffordabilityHow Much Income Do You Need for a $300k House?
The minimum salary needed to comfortably afford a $300,000 home — with examples for different down payments and interest rates.
Read guideMortgage & AffordabilityFHA vs Conventional Loan: Which Is Right for You?
Compare FHA and conventional mortgages — down payment, credit requirements, mortgage insurance, and total cost — to choose the right loan.
Read guideRelated Calculators
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