How much house can I afford on $150,000 a year?
A home up to about
$526,014
On $150,000 a year, you could afford a home up to about $526,014 with a 20% down payment of $105,203. The mortgage payment would be about $2,868 a month, or $3,500 with property tax and home insurance.
- Down payment
- $105,203
- Mortgage
- $420,811
- Payment a month
- $2,868
What it costs each month
| Mortgage payment | $2,868 |
| Property tax | $482 |
| Home insurance | $150 |
| Total | $3,500 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $21,511 (5%) | $430,219 | $408,708 | $2,785 |
| $45,117 (10%) | $451,169 | $406,052 | $2,767 |
| $105,203 (20%) | $526,014 | $420,811 | $2,868 |
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 $150,000, that's $3,500 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 $150,000 a year?
On $150,000 a year, you could afford a home up to about $526,014 with a 20% down payment of $105,203. The mortgage payment would be about $2,868 a month, or $3,500 with property tax and home insurance.
How much down payment do I need on $150,000?
With $21,511 saved, you could buy a home up to about $430,219. With $45,117 saved, you could buy a home up to about $451,169. With $105,203 saved, you could buy a home up to about $526,014.