# How Much Mortgage Can I Afford? A Complete Answer (With Calculator) By Opendoor Editorial Team | 2026-04-27 # How Much Mortgage Can I Afford? A Complete Answer (With Calculator) Most lenders say you can afford a mortgage payment equal to 28% of your gross monthly income, but that number is just a starting point. How much mortgage you can actually afford depends on your existing debt, credit score, down payment, and local property tax rates. This guide walks you through the calculations step by step, shows how your salary translates to real buying power at today's rates, and helps you find your true number before you start shopping. When you're ready, plug your details into the [Opendoor Mortgage Calculator](https://www.opendoor.com/mortgage-calculator) to see exactly where you stand. ## The Quick Answer: How Much Mortgage Can You Afford? If you want a fast rule of thumb, most financial experts suggest you can afford a home priced at roughly 2.5 to 3 times your annual gross income. A more precise approach is the **28% rule**: your total monthly housing payment, including principal, interest, taxes, and insurance, should not exceed 28% of your gross monthly income. Here is what that looks like across common salary levels, assuming a 6.5% interest rate, a 30-year fixed loan, and a 20% down payment: | Annual Income | 28% Rule Monthly Payment | Estimated Home Price Range | | --- | --- | --- | | $50,000 | $1,167/mo | $175,000–$200,000 | | $70,000 | $1,633/mo | $245,000–$280,000 | | $100,000 | $2,333/mo | $350,000–$400,000 | | $120,000 | $2,800/mo | $420,000–$480,000 | | $150,000 | $3,500/mo | $525,000–$600,000 | **Important caveat:** These are estimates. Your actual maximum depends on your total debt load, credit score, the interest rate you qualify for, and local property taxes and insurance costs. Use the [Opendoor Mortgage Calculator](https://www.opendoor.com/mortgage-calculator) to dial in a number specific to your situation. ## How Lenders Calculate What You Can Afford When you apply for a mortgage, lenders don't just look at your income. They evaluate two key ratios to determine how much mortgage you can qualify for. ### Front-End Ratio (Housing Ratio) Your front-end ratio measures how much of your gross monthly income goes toward housing costs. Most lenders want this number at or below **28%**. Housing costs here means your full PITI payment: principal, interest, taxes, and insurance. **Example:** If your gross monthly income is $7,000, your maximum PITI payment under the 28% rule would be $1,960. ### Back-End Ratio (Debt-to-Income Ratio) Your back-end ratio, commonly called your **debt-to-income ratio (DTI)**, measures how much of your gross monthly income goes toward all debt payments combined. That includes your mortgage plus car loans, student loans, credit card minimums, and any other recurring debt. Most conventional lenders cap DTI at **36% to 43%**. Some will stretch to 50% if you have strong compensating factors like a high credit score or significant cash reserves. FHA loans allow up to 50% DTI in certain cases. **Example:** $7,000 gross monthly income × 0.36 = $2,520 maximum total debt. If you already pay $500 per month toward a car loan, your maximum mortgage payment would be $2,520 minus $500, which equals $2,020. The formula is straightforward: - **Monthly gross income × 0.28 = maximum housing payment** - **Monthly gross income × 0.36 = maximum total debt (including housing)** - **Maximum mortgage payment = maximum total debt – existing monthly debt payments** Your qualifying amount is the lower of the front-end limit and the back-end limit after subtracting existing debt. ## The 28/36 Rule Explained **What is the 28/36 rule in mortgages?** The 28/36 rule is the standard lender guideline that says you should spend no more than 28% of your gross monthly income on housing costs and no more than 36% of your gross monthly income on total debt, including housing. Here is a complete example. Say your gross monthly income is $6,000: - **28% housing limit:** $6,000 × 0.28 = $1,680 maximum monthly housing payment - **36% total debt limit:** $6,000 × 0.36 = $2,160 maximum total monthly debt - **If you have $500/month in existing debt:** $2,160 – $500 = $1,660 maximum mortgage payment In this case, the back-end calculation ($1,660) is lower than the front-end limit ($1,680), so $1,660 is your effective ceiling. Many financial advisors recommend being even more conservative, suggesting you keep housing costs below 20% to 25% of your take-home pay rather than your gross income. The 28% guideline is a ceiling, not a target. ## How Much Mortgage Can You Afford on Your Salary? These are the most common salary-based questions buyers ask. All estimates below assume a 6.5% interest rate, a 30-year fixed mortgage, and average property tax and insurance costs. ### How Much Mortgage Can I Afford on a $50K Salary? With a $50,000 annual salary, your gross monthly income is approximately $4,167. Under the 28% rule, your maximum monthly housing payment is about **$1,167**. At a 6.5% rate with 20% down, that translates to a home in the **$175,000 to $195,000** range. With a 10% down payment and [PMI](/articles/what-is-mortgage-insurance-pmi), your home price range stays similar, roughly $190,000 to $210,000, because the added PMI cost offsets the larger loan. **Can I afford a $300K house on a $50K salary?** It would be very difficult. A $300,000 home at 6.5% with 20% down would require roughly $1,900 per month in PITI, well above the $1,167 threshold. You would need either a much larger down payment, a significantly lower interest rate, or additional income. ### How Much Mortgage Can I Afford on a $70K Salary? At $70,000 per year, your gross monthly income is about $5,833, giving you a maximum housing payment of roughly **$1,633**. That supports a home in the **$245,000 to $275,000** range with 20% down, or approximately $260,000 to $290,000 with 10% down. **Can I afford a $400K house on a $70K salary?** It would be a stretch. A $400,000 home at 6.5% with 20% down runs roughly $2,035 per month in PITI, which exceeds the 28% guideline. You might qualify with a low DTI and excellent credit, but you would be spending closer to 35% of gross income on housing. ### How Much Mortgage Can I Afford on a $100K Salary? A $100,000 salary gives you gross monthly income of approximately $8,333 and a 28% housing limit of about **$2,333**. That supports a home in the **$350,000 to $390,000** range at 6.5% with 20% down. **Can I afford a $500K house on a $100K salary?** Only with a substantial down payment. At 20% down, a $500,000 home costs roughly $2,550 per month in PITI, about 31% of your gross income. That exceeds the 28% rule but may still be within the 36% DTI limit if you carry little other debt. ### $150K Salary At $150,000 annually, your 28% limit is roughly **$3,500 per month**, supporting a home in the **$525,000 to $590,000** range with 20% down at 6.5%. ## What Else Affects How Much Mortgage You Can Afford? ### Credit Score Your credit score directly impacts the interest rate you receive, which dramatically affects your monthly payment and total borrowing power. - **760+:** Best available rates, maximum loan amounts - **680–759:** Competitive rates, standard approval process - **620–679:** Higher rates, approval possible, PMI likely required - **Below 620:** Conventional loans are difficult; FHA may be an option A 1% rate difference on a $400,000 loan adds roughly **$230 per month** to your payment. ### Down Payment A larger down payment means a smaller loan, a lower monthly payment, and no [private mortgage insurance](/articles/what-is-mortgage-insurance-pmi) at 20% or more. A smaller down payment lets you buy sooner with less cash up front, but PMI adds to your monthly costs. ### Existing Debt High student loan, auto, or credit card payments reduce the mortgage room in your DTI calculation. **How does student loan debt affect mortgage affordability?** Student loans count toward your back-end DTI, directly reducing the mortgage payment you can qualify for. Paying down debt before applying can meaningfully increase your qualifying amount. ### Interest Rate Rates affect your monthly payment more than most buyers realize: - **At 5%:** A $400,000 loan costs approximately $2,148/mo in principal and interest - **At 7%:** The same $400,000 loan costs approximately $2,661/mo - **Difference:** $513 per month, or roughly $184,000 over 30 years ### Property Taxes and Insurance These vary enormously by location and add **$300 to $1,000+ per month** to your housing costs. Always calculate affordability based on your full PITI payment, not just principal and interest. A home in a low-tax state stretches your dollar significantly further than the same-priced home in a high-tax market. ## Affordability by Home Price: What Income Do You Need? If you have a specific home price in mind, this table shows the approximate income required under the 28% rule: | Home Price | Down Payment (20%) | Loan Amount | Min. Annual Income (28% Rule) | Estimated Monthly PITI | | --- | --- | --- | --- | --- | | $250,000 | $50,000 | $200,000 | ~$55,000 | ~$1,270 | | $350,000 | $70,000 | $280,000 | ~$77,000 | ~$1,780 | | $400,000 | $80,000 | $320,000 | ~$88,000 | ~$2,035 | | $500,000 | $100,000 | $400,000 | ~$110,000 | ~$2,550 | | $600,000 | $120,000 | $480,000 | ~$132,000 | ~$3,060 | Estimates assume a 6.5% rate on a 30-year fixed mortgage, including rough averages for property taxes and homeowners insurance. **What income do I need for a $400,000 mortgage?** Based on a $400,000 loan amount at 6.5%, you would need roughly $110,000 in annual gross income to keep PITI within 28% of your monthly earnings. For context, the median U.S. home price is approximately $415,000 as of early 2025 according to the National Association of Realtors, while median household income sits around $77,000 according to the U.S. Census Bureau. At those numbers, the 28% rule only works with a substantial down payment or rates well below 6.5%. This is the reality many buyers face today, and many end up stretching toward higher DTI ratios. ## How to Calculate Your Mortgage Affordability Step by Step - **Step 1:** Calculate your gross monthly income (annual salary divided by 12) - **Step 2:** Multiply by 0.28 to find your maximum monthly housing payment - **Step 3:** Multiply your gross monthly income by 0.36 to find your maximum all-in debt payment - **Step 4:** Subtract your monthly non-housing debt payments (car loans, student loans, credit cards) from the Step 3 result - **Step 5:** Your maximum mortgage payment is the lower of Step 2 and Step 4 - **Step 6:** Plug that number into a mortgage calculator to find your maximum loan amount and corresponding home price ## Use the Opendoor Mortgage Calculator to Find Your Number The math above gives you a solid estimate, but the fastest way to get a personalized answer is to use the [Opendoor Mortgage Calculator](https://www.opendoor.com/mortgage-calculator). Enter your target home price, down payment, loan term, and interest rate to see your estimated monthly payment instantly. You can also work backwards: start with your target monthly payment and adjust the home price until the numbers align. If you are buying through Opendoor, Opendoor Home Loans offers **$0 lender fees**, which means more of your budget goes toward the actual home price rather than [closing costs](/articles/mortgage-closing-costs). Typical lender fees run $2,000 to $4,000, so that savings can make a real difference in your buying power. Getting pre-qualified takes about two minutes with no credit pull, making it ideal if you are still in the figuring-out-your-budget phase. Once you know your number, you can move toward [mortgage pre-approval](/articles/mortgage-preapproval) and start [the process of getting a mortgage](/articles/how-to-get-a-mortgage) with confidence. **\[Use the Free Mortgage Calculator →\](https://www.opendoor.com/mortgage-calculator)** ## How Much Is Too Much House? Just because a lender approves you for a certain amount does not mean you should borrow that much. **How much debt is too much when getting a mortgage?** If your total debt payments exceed 43% of your gross income, most conventional lenders will not approve the loan, but financial strain often begins well before that threshold. Here is what to keep in mind: - **Lender max is not your max.** Qualifying for a $500,000 mortgage does not mean $500,000 is the right number for your budget. - **Protect your other goals.** Your mortgage payment should leave room for an emergency fund, retirement contributions, and everyday expenses. - **Use take-home pay as your reality check.** Many advisors recommend keeping housing costs below 25% of your net (after-tax) income, not your gross income. - **Avoid being house poor.** Stretching to the absolute maximum on housing can stall every other financial goal. If you cannot comfortably save 10% to 15% of your income after making your mortgage payment, the home may be too expensive. The 28% front-end ratio is a reasonable ceiling. Aim for 20% to 25% of gross income if your other financial obligations allow it, and you will have breathing room for the unexpected. **Frequently asked questions** ## Disclosure Opendoor Home Loans LLC is not available in all markets. Products, programs, rates, and terms are subject to change without notice. This material is provided for informational purposes only and is not an offer or guarantee of credit. Contact Opendoor Home Loans for current availability. --- *Originally published at [https://www.opendoor.com/articles/how-much-mortgage-can-i-afford](https://www.opendoor.com/articles/how-much-mortgage-can-i-afford)*