How much house can I afford on $200,000 a year?
A home up to about
$709,203
On $200,000 a year, you could afford a home up to about $709,203 with a 20% down payment of $141,841. The mortgage payment would be about $3,867 a month, or $4,667 with property tax and home insurance.
- Down payment
- $141,841
- Mortgage
- $567,362
- Payment a month
- $3,867
What it costs each month
| Mortgage payment | $3,867 |
| Property tax | $650 |
| Home insurance | $150 |
| Total | $4,667 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $29,003 (5%) | $580,047 | $551,044 | $3,755 |
| $60,830 (10%) | $608,293 | $547,463 | $3,731 |
| $141,841 (20%) | $709,203 | $567,362 | $3,867 |
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 $200,000, that's $4,667 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 $200,000 a year?
On $200,000 a year, you could afford a home up to about $709,203 with a 20% down payment of $141,841. The mortgage payment would be about $3,867 a month, or $4,667 with property tax and home insurance.
How much down payment do I need on $200,000?
With $29,003 saved, you could buy a home up to about $580,047. With $60,830 saved, you could buy a home up to about $608,293. With $141,841 saved, you could buy a home up to about $709,203.