See roughly how much house you can afford with a $120k annual income, based on standard lender assumptions and today's interest rates.
Quick answer: $365,803 – $423,339
With a $120k/year income, a realistic home price is usually around $365,803 to $423,339 depending on your debt, down payment, mortgage rate, and local housing costs.
Estimates use a 30-year fixed loan, 7.0% interest rate, 1.2% annual property tax, 0.35% annual homeowners insurance, and PMI when down payment is below 20%. Actual payments vary by location, lender, credit profile, taxes, insurance, and loan terms.
You can afford a home around
$423,000
Based on your current income, debt, and housing cost assumptions.
Monthly Housing Budget
$2,780
This appears to be within a comfortable borrowing range.
Estimated Loan Amount
$339,000
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 % | Cash Needed | Max Home Price (28% DTI) |
|---|---|---|
| 5% | $17,483 | $349,656 |
| 10% | $36,580 | $365,803 |
| 20% | $84,668 | $423,339Max Power |
Using the 28% rule, a $120,000 salary gives you $2,800/month for housing costs. With 20% down at 7% on a 30-year loan, that supports a home price of approximately $380,000-$420,000. With existing debt reducing your budget, expect $320,000-$360,000. Use the calculator above to model your exact situation.
Yes, comfortably. A $400,000 home with 20% down at 7% produces a monthly payment of ~$2,650/mo - roughly 26.5% of your $10,000 gross monthly income. That is within the 28% guideline. You will need $80,000 for the down payment plus closing costs.
At $120,000/year your gross monthly income is $10,000. Lenders want your total monthly debt (mortgage + all other payments) under 43% DTI - that is $4,300/mo max. For front-end DTI (mortgage only), the 28% guideline means $2,800/mo.
Down payment depends on home price, not income directly. For a $400,000 home: 3.5% FHA = $14,000, 10% conventional = $40,000, 20% to avoid PMI = $80,000. Saving 20% lowers your monthly obligations significantly, increasing your buying power.
Estimates based on your inputs. Actual results may vary. Terms →