How much house can I afford on $250,000 a year?
A home up to about
$892,392
On $250,000 a year, you could afford a home up to about $892,392 with a 20% down payment of $178,479. The mortgage payment would be about $4,865 a month, or $5,833 with property tax and home insurance.
- Down payment
- $178,479
- Mortgage
- $713,913
- Payment a month
- $4,865
What it costs each month
| Mortgage payment | $4,865 |
| Property tax | $818 |
| Home insurance | $150 |
| Total | $5,833 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $36,494 (5%) | $729,874 | $693,380 | $4,725 |
| $76,542 (10%) | $765,416 | $688,874 | $4,695 |
| $178,479 (20%) | $892,392 | $713,913 | $4,865 |
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 $250,000, that's $5,833 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 $250,000 a year?
On $250,000 a year, you could afford a home up to about $892,392 with a 20% down payment of $178,479. The mortgage payment would be about $4,865 a month, or $5,833 with property tax and home insurance.
How much down payment do I need on $250,000?
With $36,494 saved, you could buy a home up to about $729,874. With $76,542 saved, you could buy a home up to about $765,416. With $178,479 saved, you could buy a home up to about $892,392.