How much house can I afford on $235,000 a year?
A home up to about
$837,435
On $235,000 a year, you could afford a home up to about $837,435 with a 20% down payment of $167,487. The mortgage payment would be about $4,566 a month, or $5,483 with property tax and home insurance.
- Down payment
- $167,487
- Mortgage
- $669,948
- Payment a month
- $4,566
What it costs each month
| Mortgage payment | $4,566 |
| Property tax | $768 |
| Home insurance | $150 |
| Total | $5,483 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $34,247 (5%) | $684,926 | $650,679 | $4,434 |
| $71,828 (10%) | $718,279 | $646,451 | $4,406 |
| $167,487 (20%) | $837,435 | $669,948 | $4,566 |
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 $235,000, that's $5,483 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 $235,000 a year?
On $235,000 a year, you could afford a home up to about $837,435 with a 20% down payment of $167,487. The mortgage payment would be about $4,566 a month, or $5,483 with property tax and home insurance.
How much down payment do I need on $235,000?
With $34,247 saved, you could buy a home up to about $684,926. With $71,828 saved, you could buy a home up to about $718,279. With $167,487 saved, you could buy a home up to about $837,435.