With an income of $120k, your comfortable buying power sits securely in the $380k to $440k range. However, the exact home price you can afford heavily depends on your stored cash for a down payment and any existing debts you currently carry.
Quick answer: ~$380,000 to ~$420,000
On a $120,000 salary, the 28% rule gives you ~$2,800/month for housing costs. With 20% down at 7%, that supports a home price of roughly $380,000-$420,000. With existing debt (car, student loans), that range drops. Adjust below for your exact numbers.
You can afford a home around
$420,000
Based on your current income, debt, and housing cost assumptions.
Monthly Housing Budget
$2,760
This appears to be within a comfortable borrowing range.
Estimated Loan Amount
$336,000
Estimated Cash Needed (Down + Closing)
$97,000
Estimates based on your inputs. Actual results may vary. Terms →
Keep track of multiple affordability setups.
| Down Payment | Home Price Range | Monthly Payment | % of Income |
|---|---|---|---|
| 5% down | ~$330,000 | ~$2,550/mo | 25% of gross |
| 10% down | ~$360,000 | ~$2,680/mo | 26% of gross |
| 20% down | ~$420,000 | ~$2,775/mo | 27.5% of grossBest |
| 20% + no debt | ~$440,000 | ~$2,900/mo | 29% of gross |
Gross monthly income: $10,000. At 28% front-end DTI your max housing payment is $2,800/mo. At a safer 25%, that is $2,500/mo. This buys you roughly $380k to $420k depending on your down payment block.
If you carry $600/mo in car and student loan payments, your mortgage allowance under the 36% back-end rule drops to $3,000/mo minus $600 = $2,400/mo. This scales back your home price to the ~$350,000 range.
At $120,000/year you are well above the national median income. In many non-coastal markets, this salary successfully supports a fully detached starter or mid-level home with a 10% to 20% down payment.
Don't Max Out Your Approval
Lenders will approve you for more than you should logically borrow. Just because you qualify for $450,000 doesn't mean it's financially sound. Budget for maintenance, emergencies, and 401(k) contributions before signing property papers.
Estimates based on your inputs. Actual results may vary. Terms →