🏡 How Much House Can I Afford on $70,000 a Year?

On a $70,000 salary, lenders typically want your housing payment (mortgage, property tax and insurance) to stay under 28% of your gross monthly income, and all your debt payments under 36%. That's the 28/36 rule, and it's the starting point for most mortgage approvals.

$70,000 a year is about $5,833.33 a month before taxes. 28% of that is your maximum housing payment: $1,633.33 if you have no other debt.

Home price by down payment

Assuming $400 a month in other debt payments, a 6.5% 30-year rate, and 1.5% of the home's value per year for property tax and insurance:

Home price by mortgage rate

With $20,000 down and the same other assumptions:

In this example, each 1% change in the rate moves the budget by roughly $17,000 to $20,000. That's why shopping for the best rate matters so much.

Run your own numbers →

Other debts matter a lot

The 36% limit covers all your debt payments: car loans, student loans and credit card minimums, plus the new mortgage. On $70,000 a year, once your other debt payments pass about $467 a month, the 36% limit becomes the tighter one, and every extra $100 of monthly debt lowers what you can borrow.

What lenders approve isn't what you should spend

The 28/36 rule is a ceiling, not a target. Leave room for repairs, savings and life. Once you have a price in mind, use the mortgage calculator to see the full monthly payment for a specific house.