How much house can I afford on $180,000?
Based on the 28/36 debt-to-income guideline.
$553,738
home price on a $180,000 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% | $583,771 | $58,377 | $4,200 |
| 6.5% | $553,738 | $55,374 | $4,200 |
| 7% | $526,076 | $52,608 | $4,200 |
| 7.5% | $500,562 | $50,056 | $4,200 |
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 | $553,738 |
| $300 | $553,738 |
| $600 | $553,738 |
| $1,000 | $553,738 |
FAQ
How much house can I afford on $180,000 a year?
Roughly $553,738 at a 6.5% rate with 10% down and no other debt, keeping housing at 28% of gross income ($4,200/month).
What is the 28/36 rule?
Lenders traditionally want housing costs under 28% of gross monthly income and all debt payments under 36%.