How Much Can You Afford To Pay?

Your monthly payments, including interest, principal, property taxes and insurance, generally should not amount to more than 28% of your monthly income. Assuming that principal and interest equal 25% of household income and taxes; and insurance equal 3%. Here is how much people in various income categories could afford to pay for a home if they use a 30-year mortgage and make a 10% or 20% down payment.

10% Down Payment

 Income Interest Rate 7% 8% 9% 10% \$25,000 \$104,167 \$94,516 \$86,180 \$79,015 \$50,000 \$208,333 \$189,033 \$172,360 \$158,030 \$75,000 \$312,500 \$283,549 \$258,540 \$237,044 \$100,000 \$416,667 \$378,065 \$344,720 \$316,059 \$150,000 \$625,000 \$567,098 \$517,081 \$474,089 \$200,000 \$833,333 \$756,131 \$689,441 \$632,118

20% Down Payment

 Income Interest Rate 7% 8% 9% 10% \$25,000 \$117,305 \$106,437 \$97,050 \$88,981 \$50,000 \$234,610 \$212,875 \$194,099 \$177,961 \$75,000 \$351,914 \$319,312 \$291,149 \$266,942 \$100,000 \$469,219 \$425,749 \$388,199 \$355,923 \$150,000 \$703,829 \$638,624 \$582,298 \$533,884 \$200,000 \$938,438 \$851,499 \$776,398 \$711,845