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Home / Mortgage payment / $150,000 income

How Much Mortgage Can $150,000 a Year Support?

Start with $150,000 of yearly income and $600 of monthly debts. The page estimates the highest payment and the loan size.

Your limit works out to $3,500.00 a month. With the $30,000 down payment the price comes to $589,547.

$
$
$
%
years
Highest monthly payment
$3,500.00
Loan you could carry
$559,547
Price with your down payment
$589,547
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How the limit is worked out

Lenders often use two rules of thumb. Housing should take about 28 percent of gross monthly income. All debt payments together should take about 36 percent. The calculator uses whichever limit is lower. Your income of $150,000 a year is $12,500 a month.

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Worked example

At $150,000 a year the monthly income is $12,500. Twenty-eight percent of that is $3,500.00. Thirty-six percent less $600 of debts is $3,900.00.

At 6.4 percent over 30 years that payment supports a loan of $559,547. Add $30,000 down and the price is $589,547.

Questions about this calculator

Which limit applies at $150,000 a year with $600 of monthly debts?

The housing limit sets the payment. The housing limit is $3,500.00 and the debt limit is $3,900.00.

What if the $600 of monthly debts were paid off at $150,000 a year?

The debt limit would rise to $4,500.00. The payment would be $3,500.00 and the loan $559,547.

Does the $3,500.00 payment include tax and insurance?

No. The $3,500.00 covers principal and interest only. Real housing costs include tax and insurance, so the loan you can safely carry on $150,000 is lower.

How much would an extra $10,000 of income add at $150,000 a year?

With $160,000 of income the loan would reach $596,850. That is $37,303 more.

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This page is for education only and is not financial or tax advice.