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Approximately how much mortgage do you think I can comfortably afford with 120k-150k salary?

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Depends on how much other debt you have, your lifestyle, property tax rates, and how much you're putting down. I know a lot of people disagree but I like Dave Ramsey's guidance: 1. Pay off all non-mortgave debt including car loans first 2. Save up enough for 10% down minimum 3. Don't buy a house that costs more than 2-3 times your annual gross salary 4. Don't spend more than 35% on your monthly take-home pay on housing (I take that to mean principal, interest, property taxes, HOA fees, and homeowners insurance) 5. Get a 15 year fixed rate mortgage Making 150k the payment on a $200,000, 15 year mortgage is very affordable but I got very lucky in finding a home at that price that I like. I have enough money for all the travel & lifestyle things I want. Same income would be a different story if I had kids in daycare. Some other tips: Don't fall in love with a house. That will lead to overpaying. There is ALWAYS another house so be patient. You make money on the purchase of a house. Don't buy a house that is objectively ugly and not fixable. Do buy a house that needs a fresh coat of paint or something easy. Try to buy one of the least expensive houses in a neighborhood. If you buy the nicest home in a neighborhood your house will appreciate less as a % of the value. My own tips: don't buy on an incline, it makes yardwork a pain. Buy a house with gutters and sprinklers.

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I purchased my house that was $600k at less than 130k salary when I bought it. I refinanced in 2020 and now even my 15 year payment is still under 30% of gross income (still within range of OPs post). The amount of house you can afford depends your monthly budget and the payment is dependent on the rate you can get - the rule of thumbs mentioned were created when interest rates were much higher. But you should easily be able to buy something in the upper 400s if you have no dp money or in the 500s if you have a normal 15-20% down with a 30 year term if you have no other significant debt. I put 20% down on mine.

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This depends on where you live heavily (it shouldn't but that is the reality). If you take the recommended conservative approach, it Is not possible to own a single home at these salaries in a high or mid/high cost city. So if you're anywhere in a remotely large city on the west coast (not just SF - San Diego, OC, LA, Seattle), you can either not own a home, be aggressive and plan around a large monthly payment proportionate to your income (and still get a 30Y fixed), or wait until your salary is higher. I bought my first home making 115k with a 400k 30y mortgage (5 percent down, refid a year later out of PMI) This was an 800 sq ft home in San Diego in a nice neighborhood but not coastal.

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There are plenty of calculators and benchmarks. I think it is hard for anyone to say since they have no idea what other expenses you have or will have.

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I’m searching for a home now with my fiancé. Combined income is $140k and we’re trying to buy around $350k. I’m in an area with high property taxes though (like $11k a year on a $350k home) which has definitely affected affordability

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Similar case to ours. My husband and I make slightly over $160k and we just bought a house for $415k. We pay ~10k in property tax and ~$90/month for HOA dues. That being said, we basically flipped our first home and came out with a pretty good profit (sold our house for a record high in our old neighborhood). Only loan we have is my car as we have paid off my husband’s truck and motorcycle. Should we have gone with something “more affordable?” Perhaps. But we love our home and we have enough leftover each month to comfortably save, invest, and spend as we like. Additionally, I ran the numbers so we’ve decided to pay biweekly and an additional lump sum 2x a year. Basically changes our mortgage from a 30 year to a 20 year. Editing to add that we also paid down quite a bit of money when we purchased the house so our mortgage is a lot less than the $415k total price.

2.5x is the recommendation. Personally for a starter home I’d do 1.5x if you are in a low-mid COL area.

I don’t like the 2.5x rule, as it’s honestly a joke in HCOL areas. Just figure out your max monthly payment, ideally around 30% of your income (assuming you have no other debt), and extrapolate from there, factoring in property taxes for your areas, any HOAs, etc.

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I live in mid-COL area, make $80k and have $270k in mortgage. I still save a good bit even after all monthly bills.

25% of your take home pay

I would figure out how much you can afford a month and then figure what house you can afford on that mortgage payment. If you assume you will continue to make more you may make it a bit tighter now. Really depends on your specifics. I think just basing it off income will get some people in trouble. If you have other large expenses, you may get in over your head. 2 people with the same income can have very different amounts left over for mortgage payments

I make about $140K a year and have a $360K mortgage. My property taxes are on the lower end (around $7K) so helps on the monthly.

My household is just above that range and we financed 360k. 7k a year property taxes. Feels comfortable. I’m in a low-mid COL area though so maybe different for you.

I’m affording a $2600 monthly mortgage on a $320k 15 year loan. Setup biweekly payments to finish paying for it in 13 years.

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