- 30% Rule – The 30 percent rule suggests that you will pay around $2,500 a month on your mortgage.
- Down Payment – With 10% down, you could put down around $35,000-$40,000 on a home.
- Interest Rate – Assuming a fixed interest rate of 6%, you could probably afford a house worth approximately $350,000-$400,000.
- Insurance and Taxes – Keep in mind that the amount of home insurance and taxes you are required to pay will influence the exact price range you can afford.
If you are making $100,000 a year and are wondering how much you can afford for a house, there are a few things to consider. Here is an estimate of what you might be able to afford: