How much house can I afford on $220,000 a year?
A home up to about
$782,478
On $220,000 a year, you could afford a home up to about $782,478 with a 20% down payment of $156,496. The mortgage payment would be about $4,266 a month, or $5,133 with property tax and home insurance.
- Down payment
- $156,496
- Mortgage
- $625,982
- Payment a month
- $4,266
What it costs each month
| Mortgage payment | $4,266 |
| Property tax | $717 |
| Home insurance | $150 |
| Total | $5,133 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $31,999 (5%) | $639,977 | $607,978 | $4,143 |
| $67,115 (10%) | $671,143 | $604,028 | $4,116 |
| $156,496 (20%) | $782,478 | $625,982 | $4,266 |
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 $220,000, that's $5,133 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 $220,000 a year?
On $220,000 a year, you could afford a home up to about $782,478 with a 20% down payment of $156,496. The mortgage payment would be about $4,266 a month, or $5,133 with property tax and home insurance.
How much down payment do I need on $220,000?
With $31,999 saved, you could buy a home up to about $639,977. With $67,115 saved, you could buy a home up to about $671,143. With $156,496 saved, you could buy a home up to about $782,478.