How Much Mortgage Can I Afford on $100K Salary? Exact Numbers
You Can Afford $375K-$450K on $100K Salary
With a $100,000 annual salary ($8,333/month gross), you can afford a home between $375,000 and $450,000 depending on debt, down payment, and rate. The 28/36 rule: PITI must stay under 28% of gross income = $2,333/month. With 20% down and 6.5% rate, max mortgage is $300K-$360K = $375K-$450K home price. Use our free affordability calculator for your exact number.
The 28/36 Rule
Front-end (28%): PITI / gross income under 28%. $100K: max $2,333/month. Back-end (36%): All debts / gross income under 36%. $100K: max $3,000/month. $500 in other debts = max PITI drops to $2,500. Use our DTI calculator.
Down Payment Impact
- 20% ($75K-$90K): Max $375K-$450K, no PMI
- 10% ($37.5K-$45K): Max $333K-$400K, PMI ~$175/month
- 5% ($18.75K-$22.5K): Max $295K-$355K, PMI ~$275/month
PMI directly reduces buying power. Use our mortgage calculator to see scenarios.
Sample: $400K Home on $100K
20% down ($80K). Loan: $320K at 6.5%. P&I: $2,022. Tax: $400/mo. Insurance: $125/mo. Total: $2,547 — exceeds 28% guideline ($2,333). Solution: increase down payment to $115K or target $365K home. Use our affordability calculator.
FAQ
Q: Stretch beyond 28%?
A: Some lenders go to 43% DTI. But it leaves less for savings and emergencies. Experts recommend staying under 28%.
Q: Student loans on $100K?
A: $500/month student loan reduces max PITI from $2,333 to $2,000, dropping max home from $400K to ~$340K.