How much house can I afford on $225,000 a year?
A home up to about
$800,797
On $225,000 a year, you could afford a home up to about $800,797 with a 20% down payment of $160,160. The mortgage payment would be about $4,366 a month, or $5,250 with property tax and home insurance.
- Down payment
- $160,160
- Mortgage
- $640,637
- Payment a month
- $4,366
What it costs each month
| Mortgage payment | $4,366 |
| Property tax | $734 |
| Home insurance | $150 |
| Total | $5,250 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $32,748 (5%) | $654,960 | $622,212 | $4,240 |
| $68,686 (10%) | $686,855 | $618,169 | $4,213 |
| $160,160 (20%) | $800,797 | $640,637 | $4,366 |
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 $225,000, that's $5,250 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 $225,000 a year?
On $225,000 a year, you could afford a home up to about $800,797 with a 20% down payment of $160,160. The mortgage payment would be about $4,366 a month, or $5,250 with property tax and home insurance.
How much down payment do I need on $225,000?
With $32,748 saved, you could buy a home up to about $654,960. With $68,686 saved, you could buy a home up to about $686,855. With $160,160 saved, you could buy a home up to about $800,797.