– If you earn $80,000 a year, you can buy a house that costs approximately $447,076 before taxes and insurance are taken into consideration. To receive a more exact estimate, please use our home affordability calculator with amortization schedule provided below.
As a result, if you earn $80,000 per year, you should be looking at properties with prices ranging from $240,000 to $320,000. You can further narrow this range by determining a monthly mortgage payment that is comfortable for you. If you want to accomplish this, take your monthly after-tax income and deduct any existing debt payments from it. Then multiply that figure by 25%.
- According to a basic rule of thumb, to determine how much house you can buy, multiply your yearly gross income by a ratio of 2.5 – 4.
- In the case of an income of $80,000 per year, you may afford a home ranging from $200,000 to $320,000.
- The 28/36 Rule is a rule that governs the ratio of 28 to 36.
- It’s also possible to compute your monthly mortgage payments using the 28 percent – 36 percent formula, which is based on your income and expenditures.