Can I afford a 380k house if I make around 135,000 dollars and have a 790 credit score and little debt?

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asked Feb 25, 2018 in Real Estate - Renting by CFG898 (280 points)
Can I afford a 380k house if I make around 135,000 dollars and have a 790 credit score and little debt?

1 Answer

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answered Feb 28, 2018 by Christeen (70,120 points)
$135,000.00 per year is around $11,000.00 per month. So I'm assuming since you didn't say exactly how much money you take home per month. I assume you make roughly $11,000.00 per month from your job or other income source.

At $11,000.00 per month you could likely afford a $4,000.00 per month home mortgage payment which is what the mortgage payment would likely be on a $380,000.00 house.

Plus you'll need a good down payment for the home mortgage.

Then you have to figure in your insurance costs and other fees. If you spend $4,000.00 per month on the mortgage payments out of the $11,000.00 per month you make each month then that will leave you with $7,000.00 per month left over for other expenses which is very doable if you cut a lot of other things out that you don't need.

I make $3,000.00 per month and after paying my house payment I still have enough money leftover to live on so yes I would say that you should be able to afford that 380k dollar house.

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