How much house can I afford on $110,000 a year?
A home up to about
$379,463
On $110,000 a year, you could afford a home up to about $379,463 with a 20% down payment of $75,893. The mortgage payment would be about $2,069 a month, or $2,567 with property tax and home insurance.
- Down payment
- $75,893
- Mortgage
- $303,570
- Payment a month
- $2,069
What it costs each month
| Mortgage payment | $2,069 |
| Property tax | $348 |
| Home insurance | $150 |
| Total | $2,567 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $15,518 (5%) | $310,357 | $294,839 | $2,009 |
| $32,547 (10%) | $325,470 | $292,923 | $1,996 |
| $75,893 (20%) | $379,463 | $303,570 | $2,069 |
How it’s worked out
Lenders usually keep housing costs (mortgage, property tax, insurance and PMI) under 28% of your gross income, and all your debt payments under 36%. On $110,000, that's $2,567 a month for housing.
Assumes no other debts, 1.1% property tax, $1,800 a year home insurance and 0.5% PMI below 20% down, using the 28/36 guideline. Freddie Mac’s average 30-year fixed rate was 7.24% on 29 October 2026.
- Uses the 28/36 guideline: housing costs (mortgage, property tax, insurance, PMI and HOA fees) up to 28% of gross income, and all debt payments up to 36%. Lenders can approve higher ratios, so this is a comfortable limit rather than the most you could be lent.
- Assumes all your savings go towards the down payment. Closing costs, usually a few percent of the price, are extra.
- PMI is charged while your down payment is under 20%.
Frequently asked questions
How much house can I afford on $110,000 a year?
On $110,000 a year, you could afford a home up to about $379,463 with a 20% down payment of $75,893. The mortgage payment would be about $2,069 a month, or $2,567 with property tax and home insurance.
How much down payment do I need on $110,000?
With $15,518 saved, you could buy a home up to about $310,357. With $32,547 saved, you could buy a home up to about $325,470. With $75,893 saved, you could buy a home up to about $379,463.