Just to be clear, you're asking about taking out a $530k loan to buy a $730k house on a $150k income. I voted, however, for the $300-400K range because I prefer the comfort level for other, higher savings and bucket-list items. If I make $120,000, how much house can I afford? Adding another 140k+ to that isn't going to help you. Once taxes and benefits are taken out of your salary, the picture looks quite different. A 1200sq/ft house in a middle-class neighborhood that is clean and safe is going to run you about 120-150k. It was a reasonable expenditure, as we purchased for about $50K less than we were approved. With the shorter loan, you will get the very best interest rate, Brown says. In looking at a basic IRS Calculator for $150,000.....no dependents, annual federal taxes alone was estimated at $30,000. Getting something cheaper than that, that is also not in a bad area, is unrealistic. Very few people I know in my state makes more than 40-45k per year. I don’t care about money for traveling or going out a lot, etc. The rules of home affordability Mortgage lenders use something called qualification ratios to determine how much … Depending on these factors, you might afford a house from $180,000 to nearly $300,000 on a $50K salary. So let's say a conservative net annual salary is going to be $115,000 annually divided by 12= $9583 monthly ($9600). Salary needed for 150,000 dollar mortgage. Typically you want to go no higher than 3X your annual salary on a home purchase. Yes, a paid-off home will help you in retirement. But that doesn't mean that you should buy the most expensive home you can possibly afford. You would want to put 20% down to avoid PMI. I do know, in my location, I could build my dream house for 400,000 –maybe even a bit less. 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. That's a lot different from taking out a $424k loan (80%) on a $530k house on a $150k income. Our house was in the $400-500K range when we bought, with income at about $150K and one child, no debt. Anything more and you'll likely end up house poor. It assumes a fixed-rate mortgage. A good rule of thumb is to spend no more than 28% of your pre-tax income on your mortgage payment. The home affordability calculator from realtor.com® helps you estimate how much house you can afford. But first: You’re asking your own question incorrectly. Will a 150K salary be able to afford this… comfortably?? This page will calculate how much you need to earn to buy a house that costs $150,000. That’s the wrong question. Quickly find the maximum home price within your price range. 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