How much house can I afford on $160,000?
Based on the 28/36 debt-to-income guideline.
$492,211
home price on a $160,000 salary at 6.5%, 10% down, 28% front-end ratio, no other debt
Affordable price by mortgage rate
| Rate | Home price | 10% down | Max housing cost/mo |
|---|---|---|---|
| 6% | $518,907 | $51,891 | $3,733 |
| 6.5% | $492,211 | $49,221 | $3,733 |
| 7% | $467,624 | $46,762 | $3,733 |
| 7.5% | $444,944 | $44,494 | $3,733 |
Assumes 25% of the housing budget goes to property tax, insurance and PMI. Car loans, student loans and card payments reduce this under the 36% back-end rule.
With other monthly debt (6.5%)
| Other debt/mo | Home price |
|---|---|
| $0 | $492,211 |
| $300 | $492,211 |
| $600 | $492,211 |
| $1,000 | $492,211 |
FAQ
How much house can I afford on $160,000 a year?
Roughly $492,211 at a 6.5% rate with 10% down and no other debt, keeping housing at 28% of gross income ($3,733/month).
What is the 28/36 rule?
Lenders traditionally want housing costs under 28% of gross monthly income and all debt payments under 36%.