Thinking about buying a home but not sure how much you can afford on a $100K/year salary?
Let’s break it down 👇
1️⃣ Calculate your monthly income: $100,000/12 = $8,333
2️⃣ Budget for housing: $8,333 x .45 = $3,750
3️⃣ Subtract your monthly debts (like student loans & car payments): $3,750 – $800 = $2,950
4️⃣ Use mortgage calculator to determine Purchase Price using variables:
Down Payment: $40,000
Interest Rate: 7.125%
Property Taxes: 1.6%
Estimated Purchase Price: $370,000
With a down payment of $40,000 and considering current rates and taxes, you could be looking at homes around the $370,000 mark.
But remember, it’s wise to spend no more than 28% of your income on your mortgage, which would adjust your target to about $325K. Always consult with a mortgage expert and one of the best realtors in Commerce Township, MI.
