How Much House Can I Afford on a $120,000 Salary?
With a $120,000 annual salary, here's how much home you can afford using the 28/36 rule, and what your monthly payment would look like.
$433,000
Max Home (20% down)
$368,000
Max Home (10% down)
$2,800
Max Monthly PITI (28%)
$3,600
Max Total Debt (36%)
$2,802.90
? Monthly payment PITI with taxes & insurance included
$1,401.45
? Bi-weekly payment PITI if paid every other week
March 2056
December 2052
$441,814.11
$352,339.02
$433
$180.42
| Payment | Interest | Principal | Balance |
|---|
| April 2026 | $1,876 | $313 | $346,087 |
| May 2026 | $1,875 | $315 | $345,772 |
| June 2026 | $1,873 | $317 | $345,455 |
| July 2026 | $1,871 | $318 | $345,137 |
| August 2026 | $1,869 | $320 | $344,817 |
| September 2026 | $1,868 | $322 | $344,495 |
| October 2026 | $1,866 | $323 | $344,172 |
| November 2026 | $1,864 | $325 | $343,847 |
| December 2026 | $1,863 | $327 | $343,520 |
| 2026 | $18,686 | $3,209 | $343,191 |
| January 2027 | $1,861 | $329 | $343,191 |
| February 2027 | $1,859 | $331 | $342,861 |
| March 2027 | $1,857 | $332 | $342,528 |
| April 2027 | $1,855 | $334 | $342,194 |
| May 2027 | $1,854 | $336 | $341,858 |
| June 2027 | $1,852 | $338 | $341,520 |
| July 2027 | $1,850 | $340 | $341,181 |
| August 2027 | $1,848 | $341 | $340,839 |
| September 2027 | $1,846 | $343 | $340,496 |
| October 2027 | $1,844 | $345 | $340,151 |
| November 2027 | $1,842 | $347 | $339,804 |
| December 2027 | $1,841 | $349 | $339,455 |
| 2027 | $22,187 | $4,087 | $339,104 |
| January 2028 | $1,839 | $351 | $339,104 |
| February 2028 | $1,837 | $353 | $338,752 |
| March 2028 | $1,835 | $355 | $338,397 |
| April 2028 | $1,833 | $356 | $338,041 |
| May 2028 | $1,831 | $358 | $337,682 |
| June 2028 | $1,829 | $360 | $337,322 |
| July 2028 | $1,827 | $362 | $336,959 |
| August 2028 | $1,825 | $364 | $336,595 |
| September 2028 | $1,823 | $366 | $336,229 |
| October 2028 | $1,821 | $368 | $335,861 |
| November 2028 | $1,819 | $370 | $335,490 |
| December 2028 | $1,817 | $372 | $335,118 |
| 2028 | $21,913 | $4,360 | $334,744 |
| January 2029 | $1,815 | $374 | $334,744 |
| February 2029 | $1,813 | $376 | $334,368 |
| March 2029 | $1,811 | $378 | $333,989 |
| April 2029 | $1,809 | $380 | $333,609 |
| May 2029 | $1,807 | $382 | $333,227 |
| June 2029 | $1,805 | $385 | $332,842 |
| July 2029 | $1,803 | $387 | $332,455 |
| August 2029 | $1,801 | $389 | $332,067 |
| September 2029 | $1,799 | $391 | $331,676 |
| October 2029 | $1,797 | $393 | $331,283 |
| November 2029 | $1,794 | $395 | $330,888 |
| December 2029 | $1,792 | $397 | $330,491 |
| 2029 | $21,621 | $4,652 | $330,092 |
| January 2030 | $1,790 | $399 | $330,092 |
| February 2030 | $1,788 | $401 | $329,690 |
| March 2030 | $1,786 | $404 | $329,286 |
| April 2030 | $1,784 | $406 | $328,881 |
| May 2030 | $1,781 | $408 | $328,472 |
| June 2030 | $1,779 | $410 | $328,062 |
| July 2030 | $1,777 | $412 | $327,650 |
| August 2030 | $1,775 | $415 | $327,235 |
| September 2030 | $1,773 | $417 | $326,818 |
| October 2030 | $1,770 | $419 | $326,399 |
| November 2030 | $1,768 | $421 | $325,977 |
| December 2030 | $1,766 | $424 | $325,554 |
| 2030 | $21,310 | $4,964 | $325,127 |
| January 2031 | $1,763 | $426 | $325,127 |
| February 2031 | $1,761 | $428 | $324,699 |
| March 2031 | $1,759 | $431 | $324,268 |
| April 2031 | $1,756 | $433 | $323,835 |
| May 2031 | $1,754 | $435 | $323,400 |
| June 2031 | $1,752 | $438 | $322,962 |
| July 2031 | $1,749 | $440 | $322,522 |
| August 2031 | $1,747 | $442 | $322,080 |
| September 2031 | $1,745 | $445 | $321,635 |
| October 2031 | $1,742 | $447 | $321,188 |
| November 2031 | $1,740 | $450 | $320,738 |
| December 2031 | $1,737 | $452 | $320,286 |
| 2031 | $20,977 | $5,296 | $319,831 |
| January 2032 | $1,735 | $455 | $319,831 |
| February 2032 | $1,732 | $457 | $319,374 |
| March 2032 | $1,730 | $460 | $318,914 |
| April 2032 | $1,727 | $462 | $318,452 |
| May 2032 | $1,725 | $465 | $317,988 |
| June 2032 | $1,722 | $467 | $317,521 |
| July 2032 | $1,720 | $470 | $317,051 |
| August 2032 | $1,717 | $472 | $316,579 |
| September 2032 | $1,715 | $475 | $316,104 |
| October 2032 | $1,712 | $477 | $315,627 |
| November 2032 | $1,710 | $480 | $315,147 |
| December 2032 | $1,707 | $482 | $314,665 |
| 2032 | $20,623 | $5,651 | $314,180 |
| January 2033 | $1,704 | $485 | $314,180 |
| February 2033 | $1,702 | $488 | $313,692 |
| March 2033 | $1,699 | $490 | $313,202 |
| April 2033 | $1,697 | $493 | $312,709 |
| May 2033 | $1,694 | $496 | $312,213 |
| June 2033 | $1,691 | $498 | $311,715 |
| July 2033 | $1,688 | $501 | $311,214 |
| August 2033 | $1,686 | $504 | $310,710 |
| September 2033 | $1,683 | $506 | $310,204 |
| October 2033 | $1,680 | $509 | $309,694 |
| November 2033 | $1,678 | $512 | $309,183 |
| December 2033 | $1,675 | $515 | $308,668 |
| 2033 | $20,244 | $6,030 | $308,150 |
| January 2034 | $1,672 | $518 | $308,150 |
| February 2034 | $1,669 | $520 | $307,630 |
| March 2034 | $1,666 | $523 | $307,107 |
| April 2034 | $1,663 | $526 | $306,581 |
| May 2034 | $1,661 | $529 | $306,052 |
| June 2034 | $1,658 | $532 | $305,520 |
| July 2034 | $1,655 | $535 | $304,986 |
| August 2034 | $1,652 | $537 | $304,448 |
| September 2034 | $1,649 | $540 | $303,908 |
| October 2034 | $1,646 | $543 | $303,364 |
| November 2034 | $1,643 | $546 | $302,818 |
| December 2034 | $1,640 | $549 | $302,269 |
| 2034 | $19,840 | $6,433 | $301,717 |
| January 2035 | $1,637 | $552 | $301,717 |
| February 2035 | $1,634 | $555 | $301,162 |
| March 2035 | $1,631 | $558 | $300,603 |
| April 2035 | $1,628 | $561 | $300,042 |
| May 2035 | $1,625 | $564 | $299,478 |
| June 2035 | $1,622 | $567 | $298,911 |
| July 2035 | $1,619 | $570 | $298,340 |
| August 2035 | $1,616 | $573 | $297,767 |
| September 2035 | $1,613 | $577 | $297,190 |
| October 2035 | $1,610 | $580 | $296,610 |
| November 2035 | $1,607 | $583 | $296,028 |
| December 2035 | $1,603 | $586 | $295,442 |
| 2035 | $19,409 | $6,864 | $294,852 |
| January 2036 | $1,600 | $589 | $294,852 |
| February 2036 | $1,597 | $592 | $294,260 |
| March 2036 | $1,594 | $596 | $293,665 |
| April 2036 | $1,591 | $599 | $293,066 |
| May 2036 | $1,587 | $602 | $292,464 |
| June 2036 | $1,584 | $605 | $291,858 |
| July 2036 | $1,581 | $609 | $291,250 |
| August 2036 | $1,578 | $612 | $290,638 |
| September 2036 | $1,574 | $615 | $290,023 |
| October 2036 | $1,571 | $619 | $289,404 |
| November 2036 | $1,568 | $622 | $288,782 |
| December 2036 | $1,564 | $625 | $288,157 |
| 2036 | $18,950 | $7,324 | $287,528 |
| January 2037 | $1,561 | $629 | $287,528 |
| February 2037 | $1,557 | $632 | $286,896 |
| March 2037 | $1,554 | $635 | $286,261 |
| April 2037 | $1,551 | $639 | $285,622 |
| May 2037 | $1,547 | $642 | $284,980 |
| June 2037 | $1,544 | $646 | $284,334 |
| July 2037 | $1,540 | $649 | $283,684 |
| August 2037 | $1,537 | $653 | $283,032 |
| September 2037 | $1,533 | $656 | $282,375 |
| October 2037 | $1,530 | $660 | $281,715 |
| November 2037 | $1,526 | $664 | $281,052 |
| December 2037 | $1,522 | $667 | $280,385 |
| 2037 | $18,459 | $7,815 | $279,714 |
| January 2038 | $1,519 | $671 | $279,714 |
| February 2038 | $1,515 | $674 | $279,039 |
| March 2038 | $1,511 | $678 | $278,361 |
| April 2038 | $1,508 | $682 | $277,680 |
| May 2038 | $1,504 | $685 | $276,994 |
| June 2038 | $1,500 | $689 | $276,305 |
| July 2038 | $1,497 | $693 | $275,612 |
| August 2038 | $1,493 | $697 | $274,916 |
| September 2038 | $1,489 | $700 | $274,216 |
| October 2038 | $1,485 | $704 | $273,511 |
| November 2038 | $1,482 | $708 | $272,803 |
| December 2038 | $1,478 | $712 | $272,092 |
| 2038 | $17,936 | $8,338 | $271,376 |
| January 2039 | $1,474 | $716 | $271,376 |
| February 2039 | $1,470 | $720 | $270,656 |
| March 2039 | $1,466 | $723 | $269,933 |
| April 2039 | $1,462 | $727 | $269,206 |
| May 2039 | $1,458 | $731 | $268,474 |
| June 2039 | $1,454 | $735 | $267,739 |
| July 2039 | $1,450 | $739 | $267,000 |
| August 2039 | $1,446 | $743 | $266,257 |
| September 2039 | $1,442 | $747 | $265,509 |
| October 2039 | $1,438 | $751 | $264,758 |
| November 2039 | $1,434 | $755 | $264,003 |
| December 2039 | $1,430 | $759 | $263,243 |
| 2039 | $17,378 | $8,896 | $262,480 |
| January 2040 | $1,426 | $764 | $262,480 |
| February 2040 | $1,422 | $768 | $261,712 |
| March 2040 | $1,418 | $772 | $260,940 |
| April 2040 | $1,413 | $776 | $260,164 |
| May 2040 | $1,409 | $780 | $259,384 |
| June 2040 | $1,405 | $784 | $258,599 |
| July 2040 | $1,401 | $789 | $257,811 |
| August 2040 | $1,396 | $793 | $257,018 |
| September 2040 | $1,392 | $797 | $256,220 |
| October 2040 | $1,388 | $802 | $255,419 |
| November 2040 | $1,384 | $806 | $254,613 |
| December 2040 | $1,379 | $810 | $253,802 |
| 2040 | $16,782 | $9,492 | $252,988 |
| January 2041 | $1,375 | $815 | $252,988 |
| February 2041 | $1,370 | $819 | $252,168 |
| March 2041 | $1,366 | $824 | $251,345 |
| April 2041 | $1,361 | $828 | $250,517 |
| May 2041 | $1,357 | $833 | $249,684 |
| June 2041 | $1,352 | $837 | $248,847 |
| July 2041 | $1,348 | $842 | $248,006 |
| August 2041 | $1,343 | $846 | $247,160 |
| September 2041 | $1,339 | $851 | $246,309 |
| October 2041 | $1,334 | $855 | $245,454 |
| November 2041 | $1,330 | $860 | $244,594 |
| December 2041 | $1,325 | $865 | $243,729 |
| 2041 | $16,146 | $10,128 | $242,860 |
| January 2042 | $1,320 | $869 | $242,860 |
| February 2042 | $1,315 | $874 | $241,986 |
| March 2042 | $1,311 | $879 | $241,107 |
| April 2042 | $1,306 | $883 | $240,224 |
| May 2042 | $1,301 | $888 | $239,335 |
| June 2042 | $1,296 | $893 | $238,442 |
| July 2042 | $1,292 | $898 | $237,544 |
| August 2042 | $1,287 | $903 | $236,641 |
| September 2042 | $1,282 | $908 | $235,734 |
| October 2042 | $1,277 | $913 | $234,821 |
| November 2042 | $1,272 | $918 | $233,904 |
| December 2042 | $1,267 | $923 | $232,981 |
| 2042 | $15,468 | $10,806 | $232,054 |
| January 2043 | $1,262 | $928 | $232,054 |
| February 2043 | $1,257 | $933 | $231,121 |
| March 2043 | $1,252 | $938 | $230,184 |
| April 2043 | $1,247 | $943 | $229,241 |
| May 2043 | $1,242 | $948 | $228,293 |
| June 2043 | $1,237 | $953 | $227,340 |
| July 2043 | $1,231 | $958 | $226,382 |
| August 2043 | $1,226 | $963 | $225,419 |
| September 2043 | $1,221 | $968 | $224,450 |
| October 2043 | $1,216 | $974 | $223,477 |
| November 2043 | $1,210 | $979 | $222,498 |
| December 2043 | $1,205 | $984 | $221,514 |
| 2043 | $14,744 | $11,530 | $220,524 |
| January 2044 | $1,200 | $990 | $220,524 |
| February 2044 | $1,195 | $995 | $219,529 |
| March 2044 | $1,189 | $1,000 | $218,529 |
| April 2044 | $1,184 | $1,006 | $217,523 |
| May 2044 | $1,178 | $1,011 | $216,512 |
| June 2044 | $1,173 | $1,017 | $215,495 |
| July 2044 | $1,167 | $1,022 | $214,473 |
| August 2044 | $1,162 | $1,028 | $213,445 |
| September 2044 | $1,156 | $1,033 | $212,412 |
| October 2044 | $1,151 | $1,039 | $211,373 |
| November 2044 | $1,145 | $1,045 | $210,328 |
| December 2044 | $1,139 | $1,050 | $209,278 |
| 2044 | $13,972 | $12,302 | $208,222 |
| January 2045 | $1,134 | $1,056 | $208,222 |
| February 2045 | $1,128 | $1,062 | $207,160 |
| March 2045 | $1,122 | $1,067 | $206,093 |
| April 2045 | $1,116 | $1,073 | $205,020 |
| May 2045 | $1,111 | $1,079 | $203,941 |
| June 2045 | $1,105 | $1,085 | $202,856 |
| July 2045 | $1,099 | $1,091 | $201,765 |
| August 2045 | $1,093 | $1,097 | $200,669 |
| September 2045 | $1,087 | $1,103 | $199,566 |
| October 2045 | $1,081 | $1,108 | $198,458 |
| November 2045 | $1,075 | $1,115 | $197,343 |
| December 2045 | $1,069 | $1,121 | $196,223 |
| 2045 | $13,148 | $13,126 | $195,096 |
| January 2046 | $1,063 | $1,127 | $195,096 |
| February 2046 | $1,057 | $1,133 | $193,963 |
| March 2046 | $1,051 | $1,139 | $192,825 |
| April 2046 | $1,044 | $1,145 | $191,680 |
| May 2046 | $1,038 | $1,151 | $190,528 |
| June 2046 | $1,032 | $1,157 | $189,371 |
| July 2046 | $1,026 | $1,164 | $188,207 |
| August 2046 | $1,019 | $1,170 | $187,037 |
| September 2046 | $1,013 | $1,176 | $185,861 |
| October 2046 | $1,007 | $1,183 | $184,678 |
| November 2046 | $1,000 | $1,189 | $183,489 |
| December 2046 | $994 | $1,196 | $182,293 |
| 2046 | $12,269 | $14,005 | $181,091 |
| January 2047 | $987 | $1,202 | $181,091 |
| February 2047 | $981 | $1,209 | $179,883 |
| March 2047 | $974 | $1,215 | $178,668 |
| April 2047 | $968 | $1,222 | $177,446 |
| May 2047 | $961 | $1,228 | $176,217 |
| June 2047 | $955 | $1,235 | $174,983 |
| July 2047 | $948 | $1,242 | $173,741 |
| August 2047 | $941 | $1,248 | $172,492 |
| September 2047 | $934 | $1,255 | $171,237 |
| October 2047 | $928 | $1,262 | $169,975 |
| November 2047 | $921 | $1,269 | $168,707 |
| December 2047 | $914 | $1,276 | $167,431 |
| 2047 | $11,331 | $14,943 | $166,148 |
| January 2048 | $907 | $1,283 | $166,148 |
| February 2048 | $900 | $1,290 | $164,859 |
| March 2048 | $893 | $1,296 | $163,562 |
| April 2048 | $886 | $1,304 | $162,259 |
| May 2048 | $879 | $1,311 | $160,948 |
| June 2048 | $872 | $1,318 | $159,631 |
| July 2048 | $865 | $1,325 | $158,306 |
| August 2048 | $857 | $1,332 | $156,974 |
| September 2048 | $850 | $1,339 | $155,635 |
| October 2048 | $843 | $1,346 | $154,288 |
| November 2048 | $836 | $1,354 | $152,934 |
| December 2048 | $828 | $1,361 | $151,573 |
| 2048 | $10,330 | $15,944 | $150,205 |
| January 2049 | $821 | $1,368 | $150,205 |
| February 2049 | $814 | $1,376 | $148,829 |
| March 2049 | $806 | $1,383 | $147,446 |
| April 2049 | $799 | $1,391 | $146,055 |
| May 2049 | $791 | $1,398 | $144,656 |
| June 2049 | $784 | $1,406 | $143,250 |
| July 2049 | $776 | $1,414 | $141,837 |
| August 2049 | $768 | $1,421 | $140,416 |
| September 2049 | $761 | $1,429 | $138,987 |
| October 2049 | $753 | $1,437 | $137,550 |
| November 2049 | $745 | $1,444 | $136,106 |
| December 2049 | $737 | $1,452 | $134,654 |
| 2049 | $9,262 | $17,011 | $133,193 |
| January 2050 | $729 | $1,460 | $133,193 |
| February 2050 | $721 | $1,468 | $131,725 |
| March 2050 | $714 | $1,476 | $130,249 |
| April 2050 | $706 | $1,484 | $128,765 |
| May 2050 | $697 | $1,492 | $127,273 |
| June 2050 | $689 | $1,500 | $125,773 |
| July 2050 | $681 | $1,508 | $124,265 |
| August 2050 | $673 | $1,516 | $122,749 |
| September 2050 | $665 | $1,525 | $121,224 |
| October 2050 | $657 | $1,533 | $119,691 |
| November 2050 | $648 | $1,541 | $118,150 |
| December 2050 | $640 | $1,550 | $116,601 |
| 2050 | $8,123 | $18,151 | $115,043 |
| January 2051 | $632 | $1,558 | $115,043 |
| February 2051 | $623 | $1,566 | $113,476 |
| March 2051 | $615 | $1,575 | $111,902 |
| April 2051 | $606 | $1,583 | $110,318 |
| May 2051 | $598 | $1,592 | $108,726 |
| June 2051 | $589 | $1,601 | $107,126 |
| July 2051 | $580 | $1,609 | $105,517 |
| August 2051 | $572 | $1,618 | $103,899 |
| September 2051 | $563 | $1,627 | $102,272 |
| October 2051 | $554 | $1,636 | $100,636 |
| November 2051 | $545 | $1,644 | $98,992 |
| December 2051 | $536 | $1,653 | $97,339 |
| 2051 | $6,908 | $19,366 | $95,677 |
| January 2052 | $527 | $1,662 | $95,677 |
| February 2052 | $518 | $1,671 | $94,005 |
| March 2052 | $509 | $1,680 | $92,325 |
| April 2052 | $500 | $1,689 | $90,636 |
| May 2052 | $491 | $1,699 | $88,937 |
| June 2052 | $482 | $1,708 | $87,229 |
| July 2052 | $472 | $1,717 | $85,512 |
| August 2052 | $463 | $1,726 | $83,786 |
| September 2052 | $454 | $1,736 | $82,050 |
| October 2052 | $444 | $1,745 | $80,305 |
| November 2052 | $435 | $1,754 | $78,551 |
| December 2052 | $425 | $1,764 | $76,787 |
| 2052 | $5,611 | $20,663 | $75,013 |
| January 2053 | $416 | $1,774 | $75,013 |
| February 2053 | $406 | $1,783 | $73,230 |
| March 2053 | $397 | $1,793 | $71,437 |
| April 2053 | $387 | $1,803 | $69,635 |
| May 2053 | $377 | $1,812 | $67,823 |
| June 2053 | $367 | $1,822 | $66,000 |
| July 2053 | $358 | $1,832 | $64,168 |
| August 2053 | $348 | $1,842 | $62,327 |
| September 2053 | $338 | $1,852 | $60,475 |
| October 2053 | $328 | $1,862 | $58,613 |
| November 2053 | $317 | $1,872 | $56,741 |
| December 2053 | $307 | $1,882 | $54,859 |
| 2053 | $4,227 | $22,047 | $52,966 |
| January 2054 | $297 | $1,892 | $52,966 |
| February 2054 | $287 | $1,903 | $51,064 |
| March 2054 | $277 | $1,913 | $49,151 |
| April 2054 | $266 | $1,923 | $47,228 |
| May 2054 | $256 | $1,934 | $45,294 |
| June 2054 | $245 | $1,944 | $43,350 |
| July 2054 | $235 | $1,955 | $41,395 |
| August 2054 | $224 | $1,965 | $39,430 |
| September 2054 | $214 | $1,976 | $37,454 |
| October 2054 | $203 | $1,987 | $35,467 |
| November 2054 | $192 | $1,997 | $33,470 |
| December 2054 | $181 | $2,008 | $31,462 |
| 2054 | $2,750 | $23,524 | $29,443 |
| January 2055 | $170 | $2,019 | $29,443 |
| February 2055 | $159 | $2,030 | $27,413 |
| March 2055 | $148 | $2,041 | $25,372 |
| April 2055 | $137 | $2,052 | $23,320 |
| May 2055 | $126 | $2,063 | $21,256 |
| June 2055 | $115 | $2,074 | $19,182 |
| July 2055 | $104 | $2,086 | $17,097 |
| August 2055 | $93 | $2,097 | $15,000 |
| September 2055 | $81 | $2,108 | $12,891 |
| October 2055 | $70 | $2,120 | $10,772 |
| November 2055 | $58 | $2,131 | $8,641 |
| December 2055 | $47 | $2,143 | $6,498 |
| 2055 | $1,175 | $25,099 | $4,344 |
| January 2056 | $35 | $2,154 | $4,344 |
| February 2056 | $24 | $2,166 | $2,178 |
| March 2056 | $12 | $2,178 | $0 |
| 2056 | $35 | $4,344 | $0 |
Home Affordability on $120,000/Year
Using the 28/36 rule — your PITI payment should stay under 28% of gross income, total debt under 36%:
| Monthly | Annual | |
|---|---|---|
| Gross income | $10,000 | $120,000 |
| Max PITI (28%) | $2,800 | $33,600 |
| Max total debt (36%) | $3,600 | $43,200 |
How Much Home Can You Buy?
At a 6.5% interest rate with a 30-year loan:
| Down Payment | Max Home Price | Monthly PITI | Notes |
|---|---|---|---|
| 20% | $433,000 | ~$2,803 | No PMI |
| 10% | ~$368,000 | ~$2,800 | Includes PMI |
| 5% | ~$346,000 | ~$2,800 | Includes PMI |
A larger down payment lets you afford a more expensive home because there’s no PMI eating into your monthly budget.
Impact of Existing Debt
If you have other monthly debt payments, your buying power drops:
| Monthly Debt | Available for PITI | Max Home (20% down) |
|---|---|---|
| $0 | $2,800 | $433,000 |
| $300/mo | $3,300 | ~$397,000 |
| $500/mo | $3,100 | ~$373,000 |
| $800/mo | $2,800 | ~$337,000 |
Every $300/month in existing debt reduces your buying power by roughly $36,000.
How Interest Rate Affects Affordability
On a $120,000 salary with 20% down:
| Rate | Max Home Price | Monthly PITI |
|---|---|---|
| 5.5% | ~$485,000 | ~$2,800 |
| 6.0% | ~$459,000 | ~$2,800 |
| 6.5% | $433,000 | ~$2,803 |
| 7.0% | ~$407,000 | ~$2,800 |
| 7.5% | ~$385,000 | ~$2,800 |
A 1% rate drop adds roughly $52,000 to your buying power.
Tips to Maximize What You Can Afford
- Pay off debt first — every $300/month in debt you eliminate adds ~$36,000 in buying power
- Improve your credit score — better scores get lower rates, which means more home for the same payment
- Compare lenders — rates vary 0.25-0.5% between lenders, which can mean $26,000+ in buying power
- Consider bi-weekly payments — won’t help you qualify, but saves thousands in interest after you buy
- Check your state — property taxes and insurance vary dramatically. See your state’s costs
Calculate Your Exact Affordability
The calculator above is pre-filled for a $120,000 salary. Adjust the home value, down payment, and local taxes to see your exact monthly PITI payment.