With a $75,000 annual income, $500 in monthly debts, and a 20% down payment, you can afford approximately a $280,000 home. This assumes a 7% mortgage rate, 30-year term, and following the 28/36 debt-to-income rule where housing costs stay under 28% of gross income.
Key Numbers
- •Annual income: $75,000
- •Monthly gross income: $6,250
- •Max monthly housing cost (28%): $1,750
- •Estimated home price: ~$280,000
- •Down payment (20%): $56,000
- •Monthly mortgage payment: ~$1,490