How much house can my income afford? Please answer?

Question

At the following levels of yearly income, how expensive of a house could one afford?

1. $50,000 per year

2.$100,000 per year

3. $200,000 per year

4. $600,000 per year

Answer 1

50,000$ per year

Answer 2

depends on interest rate for loan

depends on how much down payment you have saved up or how much equity you ahve in current house

depends on how many other outstanding loans you may have

total mortgage payment with taxes and insurance included usually should not exceed 30% of gross income

30% of 50K income would be 15K or about 1250 per month

plug that into a calculator online and see what it says for your interest rate and payment time

30% of 100K would be about 2500 per month

at the higher income brackets you might go higher on the % of gross acceptable

Answer 3

$50,000< a 3 bedroom house $300k-$400k with huge mortgage

$100,000 - still $400-600k

$200,000- $600k-$700k < faster payments than 100,000

$600,000 1-2 million dollar grand house in the suburbs. Definitely an above average house.  

Answer 4

General rule of thumb is that the price shouldn't be higher than 2.5 times your annual income.

So family #1 could afford a $125K house, family #4 could have one that's well over a million.