How much house can you afford if you make 80000 a year?

+1 vote
asked Jul 27, 2018 in Real Estate - Renting by Crisigvs (290 points)
How much house can you afford if you make 80000 a year?

If I make $80,000.00 per year salary how much house can I afford to buy on an $80,000.00 per year salary?

1 Answer

0 votes
answered Jul 31, 2018 by Liloo (920 points)
If your take home pay that you make from your job is $80,000.00 per year you should be able to afford and qualify for a mortgage of between $240,000.00 to $320,000.00

However just because you qualify for the mortgage it doesn't mean you should take that high of a mortgage.

Look for a house to buy that you can easily afford and factor in all your current monthly expenses such as food, gasoline, car expenses, clothing etc.

Also when you buy a house you'll have more to pay than just the mortgage payment as they'll be real estate taxes, home owners insurance, electricity, water, sewer, home upkeep, heating bills internet and much more.

Heating bills during the winter can be as high as $500.00 per month just for natural gas or even more for heating oil if that's what your home uses.

Some people who uses heating oil for heat report that they pay up to $6,000.00 per year for heating oil and some people on natural gas pay from $3,000.00 to $6,000.00 per year as well depending on how large the house is.

The larger the house the more it costs to heat and cool it.

So you need to figure in all those expenses and check with the lender on how much the monthly mortgage payment will be on that mortgage.

Then sit down and decide if you can actually afford the higher mortgage.

Go with a house you like but a mortgage you can easily afford as it's better to not be house poor where all your money or most of your money is going for house expenses leaving you with hardly anything left.

Buy a house below your means and you'll be better off.

101,244 questions

97,025 answers

1,290 comments

7,002,521 users

...