How much house can I afford on $120,000 a year?
Someone earning $120,000 a year, with a modest amount of other monthly debt and a real down payment saved up, wants to know what a lender would actually approve.
Estimated max home price
$467,747
- Max loan amount
- $372,747
- Estimated monthly payment
- $2,800
- Down payment used
- $95,000 (20.31%)
- Housing-cost-to-income ratio
- 28%
Assumptions used
- $120,000 annual income
- $650/month in other debt
- 6% interest rate, 30-year term
This uses standard lending ratios (roughly 28% of gross income for housing costs, 36% for total debt) as a guide — actual lender limits vary by credit profile, loan type, and location. Treat this as a starting point for the conversation with a lender, not a pre-approval.
Advertisement
Ad space
Adjust the numbers yourself
Mortgage Affordability Calculator