How much mortgage can i afford with 75k salary?

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When considering purchasing a home, one of the first questions that comes to mind is, “How much mortgage can I afford with a $75,000 salary?” Determining the answer to this question is crucial to ensure you make a sound financial decision. In this article, we will dive deeper into this topic and explore various factors that can help you determine the mortgage amount you can afford based on your salary.

Factors to Consider

Debt-to-Income Ratio: One of the key factors lenders consider when determining your mortgage affordability is your debt-to-income ratio (DTI). This ratio compares your monthly debt payments to your gross monthly income. Lenders typically prefer a DTI ratio of 43% or lower. To calculate your DTI, add up all your monthly debt payments (including credit cards, student loans, car loans, etc.) and divide it by your gross monthly income. Subtract this percentage from 100 to determine the percentage of your income available for a mortgage payment.

Down Payment: The amount of down payment you can afford will also impact the mortgage you can afford. A larger down payment reduces the loan amount, which in turn lowers your monthly mortgage payment. While it is possible to obtain a mortgage with a small down payment, it is generally recommended to aim for a down payment of at least 20% to avoid private mortgage insurance (PMI) and secure more favorable loan terms.

Interest Rates: Interest rates play a significant role in determining the mortgage amount you can afford. Higher interest rates result in higher monthly mortgage payments, reducing the amount you can borrow. It is important to keep an eye on current interest rates and consider their impact on your affordability.

Other Expenses: In addition to your mortgage payment, it is essential to consider other expenses associated with homeownership. These include property taxes, homeowners insurance, maintenance costs, and potentially homeowner association (HOA) fees. These expenses can vary based on location and property type, so it is crucial to factor them into your budget when determining how much mortgage you can afford.

Calculating Affordability

To get a rough estimate of the mortgage amount you can afford with a $75,000 salary, you can use the 28/36 rule. This rule suggests that your monthly housing expenses should not exceed 28% of your gross monthly income, and your total monthly debt payments, including housing expenses, should not exceed 36% of your gross monthly income.

Let’s break it down:

Step 1: Calculate 28% of your gross monthly income. In this case, it would be $75,000 * 0.28 = $21,000 per year or $1,750 per month.

Step 2: Calculate 36% of your gross monthly income. Using the same salary, it would be $75,000 * 0.36 = $27,000 per year or $2,250 per month.

Step 3: Subtract your monthly debt payments from the total amount calculated in Step 2. For example, if your monthly debt payments amount to $500, subtract $500 from $2,250 to get $1,750.

The resulting amount, $1,750, represents the maximum monthly mortgage payment you can afford based on the 28/36 rule. Keep in mind that this is a rough estimate, and other factors such as interest rates, down payment, and additional expenses should be considered for a more accurate assessment.


Determining how much mortgage you can afford with a $75,000 salary involves considering various factors such as your debt-to-income ratio, down payment, interest rates, and other expenses. By using the 28/36 rule as a starting point, you can estimate a rough maximum monthly mortgage payment. However, it is essential to consult with a mortgage professional to get a more accurate assessment based on your specific financial situation.


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