How Much Can You Afford To Pay?

Your monthly payments, including interest, principal, property taxes and insurance, generally should not amount to more than 28% of your monthly income. Assuming that principal and interest equal 25% of household income and taxes; and insurance equal 3%. Here is how much people in various income categories could afford to pay for a home if they use a 30-year mortgage and make a 10% or 20% down payment.

 

10% Down Payment

 Income 

Interest Rate

7%

8%

9%

10%

$25,000

$104,167

$94,516

$86,180 $79,015
$50,000 $208,333 $189,033 $172,360 $158,030
$75,000 $312,500 $283,549 $258,540 $237,044
$100,000 $416,667 $378,065 $344,720 $316,059
$150,000 $625,000 $567,098 $517,081 $474,089

$200,000

$833,333 $756,131 $689,441 $632,118

 

20% Down Payment

Income  

Interest Rate

7%

8%

9%

10%

$25,000

$117,305

$106,437

$97,050

$88,981

$50,000

$234,610

$212,875

$194,099

$177,961

$75,000

$351,914

$319,312

$291,149

$266,942

$100,000

$469,219

$425,749

$388,199

$355,923

$150,000

$703,829

$638,624

$582,298

$533,884

$200,000

$938,438

$851,499

$776,398

$711,845

 

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