How much house can I afford on $245,000 a year?
A home up to about
$874,073
On $245,000 a year, you could afford a home up to about $874,073 with a 20% down payment of $174,815. The mortgage payment would be about $4,765 a month, or $5,717 with property tax and home insurance.
- Down payment
- $174,815
- Mortgage
- $699,258
- Payment a month
- $4,765
What it costs each month
| Mortgage payment | $4,765 |
| Property tax | $801 |
| Home insurance | $150 |
| Total | $5,717 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $35,745 (5%) | $714,891 | $679,146 | $4,628 |
| $74,971 (10%) | $749,704 | $674,733 | $4,598 |
| $174,815 (20%) | $874,073 | $699,258 | $4,765 |
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 $245,000, that's $5,717 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 $245,000 a year?
On $245,000 a year, you could afford a home up to about $874,073 with a 20% down payment of $174,815. The mortgage payment would be about $4,765 a month, or $5,717 with property tax and home insurance.
How much down payment do I need on $245,000?
With $35,745 saved, you could buy a home up to about $714,891. With $74,971 saved, you could buy a home up to about $749,704. With $174,815 saved, you could buy a home up to about $874,073.