How much house can I afford on $240,000 a year?
A home up to about
$855,754
On $240,000 a year, you could afford a home up to about $855,754 with a 20% down payment of $171,151. The mortgage payment would be about $4,666 a month, or $5,600 with property tax and home insurance.
- Down payment
- $171,151
- Mortgage
- $684,603
- Payment a month
- $4,666
What it costs each month
| Mortgage payment | $4,666 |
| Property tax | $784 |
| Home insurance | $150 |
| Total | $5,600 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $34,996 (5%) | $699,908 | $664,912 | $4,531 |
| $73,400 (10%) | $733,992 | $660,592 | $4,502 |
| $171,151 (20%) | $855,754 | $684,603 | $4,666 |
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 $240,000, that's $5,600 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 $240,000 a year?
On $240,000 a year, you could afford a home up to about $855,754 with a 20% down payment of $171,151. The mortgage payment would be about $4,666 a month, or $5,600 with property tax and home insurance.
How much down payment do I need on $240,000?
With $34,996 saved, you could buy a home up to about $699,908. With $73,400 saved, you could buy a home up to about $733,992. With $171,151 saved, you could buy a home up to about $855,754.