Can someone afford a 300000 dollar home with a 150000 to 180000 salary?

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7 Thoughts on Can someone afford a 300000 dollar home with a 150000 to 180000 salary?
Art Vandelay
April 22, 2013 at 4:00 am

They would, just based on income, qualify for a loan of that amount. But the question of “afford” depends on what your other debt requirements are (car loans, credit cards, student loans, etc.), and the cost of your taxes, insurance, utilities, maintenance and upkeep.

Jennifer
April 22, 2013 at 4:18 am

yes easily! as long as you know how to control your spending habbits!:)

unclerandy123
April 22, 2013 at 5:01 am

Sure. In fact with a \$ 150,000 salary, you could pay it off in 2 years.

The point is, without knowing your expenses, its impossible to know. Income is less important than debt/income ratio. I know people that make well over \$ 200,000 a year, and live day to day, one step away from bankruptcy.

thomas h
April 22, 2013 at 5:03 am

simple formula take your gross monthly income multiply by 45% (some banks go to 50%) but stay at 45 to be safe then from that number subtract any monthly credit card debt, car loan/lease or any other monthly obligation except utilities and insurance…now the number you are left with is what you can afford for PITI (principal,interest,taxes,insurance) Figure out what you can put down on a 300k house then figure out the payment at 4% 30yr fixed(there are many online mtg calculators..zillow) then add the monthly taxes and Ins. and see how it compare to the number you came up with from the income calculation…a person with a 200 a month car pament making 80k per year was just approved for a 350k mortgage she had no other debts and the taxes were 550/month and Ins 110/month PMI/125/month…her DTI was 44% So someone making 150k with low debts could easily afford much much more

Jay
April 22, 2013 at 5:54 am

Yes. If you want simple math lets just say that is a \$ 2300 dollar a month mortgage. someone that makes 150k to 180k makes 12 to 15k a month. Yes, this is very affordable. You should be able to really enjoy the comforts and benefits of ownership