How much house can I afford on $75,000 a year?
A home up to about
$251,230
On $75,000 a year, you could afford a home up to about $251,230 with a 20% down payment of $50,246. The mortgage payment would be about $1,370 a month, or $1,750 with property tax and home insurance.
- Down payment
- $50,246
- Mortgage
- $200,984
- Payment a month
- $1,370
What it costs each month
| Mortgage payment | $1,370 |
| Property tax | $230 |
| Home insurance | $150 |
| Total | $1,750 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $10,274 (5%) | $205,477 | $195,203 | $1,330 |
| $21,549 (10%) | $215,484 | $193,935 | $1,322 |
| $50,246 (20%) | $251,230 | $200,984 | $1,370 |
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 $75,000, that's $1,750 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 $75,000 a year?
On $75,000 a year, you could afford a home up to about $251,230 with a 20% down payment of $50,246. The mortgage payment would be about $1,370 a month, or $1,750 with property tax and home insurance.
How much down payment do I need on $75,000?
With $10,274 saved, you could buy a home up to about $205,477. With $21,549 saved, you could buy a home up to about $215,484. With $50,246 saved, you could buy a home up to about $251,230.