How much mortgage can i afford with 100k salary
Using the 28% rule, you can afford a mortgage with a monthly payment of no more than $2,333.33 if you have a $100,000 salary.
However, it's important to keep in mind that this is just a general guideline. You should also consider your other debt obligations, such as credit card payments and student loans when deciding how much mortgage you can afford.
Here are some other factors to consider when determining how much mortgage you can afford:
- Your down payment: The larger your down payment, the lower your monthly mortgage payment will be.
- Your interest rate: The interest rate you qualify for will also affect your monthly mortgage payment.
- Your property taxes and homeowners insurance: These costs are typically added to your monthly mortgage payment.
It's a good idea to speak with a financial advisor before getting pre-approved for a mortgage so they can help you determine how much you can afford and develop a budget that works for you.
Here is an example:
- Salary: $100,000
- Down payment: 20% ($40,000)
- Interest rate: 5%
- Mortgage amount: $320,000
- Monthly mortgage payment: $2,022
- Property taxes and homeowners insurance: $200 per month
- Total monthly payment: $2,222
In this example, the monthly mortgage payment is 22% of the borrower's gross monthly income, which is below the 28% rule. The borrower also has a down payment of 20%, which will help to reduce their monthly mortgage payment and overall debt burden.
It's important to note that this is just an example. Your actual monthly mortgage payment may vary depending on your individual circumstances.
