You have to figure out what you’re eligible for to know the real number. You would want to put 20% down to avoid PMI. Depending on these factors, you might afford a house from $180,000 to nearly $300,000 on a $50K salary. I don’t care about money for traveling or going out a lot, etc. Will a 150K salary be able to afford this… comfortably?? Yes, a paid-off home will help you in retirement. Quickly find the maximum home price within your price range. If I make $120,000, how much house can I afford? So let's say a conservative net annual salary is going to be $115,000 annually divided by 12= $9583 monthly ($9600). You probably mean “How much will a lender lend me?” But that’s not how much you can afford. You can determine how much house you can afford by following three simple rules based on different percentages of your monthly income. But first: You’re asking your own question incorrectly. That's a lot different from taking out a $424k loan (80%) on a $530k house on a $150k income. Salary needed for 150,000 dollar mortgage. A good rule of thumb is to spend no more than 28% of your pre-tax income on your mortgage payment. It was a reasonable expenditure, as we purchased for about $50K less than we were approved. A 1200sq/ft house in a middle-class neighborhood that is clean and safe is going to run you about 120-150k. That’s the wrong question. Our house was in the $400-500K range when we bought, with income at about $150K and one child, no debt. In looking at a basic IRS Calculator for $150,000.....no dependents, annual federal taxes alone was estimated at $30,000. Typically you want to go no higher than 3X your annual salary on a home purchase. With the shorter loan, you will get the very best interest rate, Brown says. Anything more and you'll likely end up house poor. Once taxes and benefits are taken out of your salary, the picture looks quite different. But that doesn't mean that you should buy the most expensive home you can possibly afford. This page will calculate how much you need to earn to buy a house that costs $150,000. The home affordability calculator from realtor.com® helps you estimate how much house you can afford. Getting something cheaper than that, that is also not in a bad area, is unrealistic. I voted, however, for the $300-400K range because I prefer the comfort level for other, higher savings and bucket-list items. Just to be clear, you're asking about taking out a $530k loan to buy a $730k house on a $150k income. I do know, in my location, I could build my dream house for 400,000 –maybe even a bit less. In your situation, You already have 50k of debt, along with 5k of credit card debt. Depending on how much you want your monthly payment to be and how much you have to put down, you can choose between a 15-year or a 30-year loan, and many lenders will create a loan for you with custom terms. It assumes a fixed-rate mortgage. Adding another 140k+ to that isn't going to help you. 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