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Published March 15, 2024
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How Much Mortgage Can I Get With a $70,000 Salary?

A person making $70,000 may be able to afford a mortgage around $400,000. The mortgage amount you'll qualify for ultimately depends on your credit score, debt and current interest rates.

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Here’s one way to estimate how much mortgage you can get with a salary of $70,000:

  1. Calculate your monthly income. Divide your annual salary of $70,000 by 12 to get your monthly pay: $5,833. 
  2. Find your monthly mortgage max. No more than 39% of your income can go toward your mortgage payment, including property taxes and utilities, per a common lender measurement called your gross debt service ratio. A monthly salary of $5,833 multiplied by 0.39 is $2,275. 
  3. Determine the price range of houses to look at. If you were approved for a 25-year mortgage with an interest rate of 5%, that $2,275 monthly payment translates into a home price of about $400,000 with a 20% down payment.

But these numbers may not apply to everyone who makes $70,000 per year. Why not? 

One reason is that this estimate assumes you can get a mortgage interest rate of 5%. This rate may not be available when you apply for a mortgage. And even if lenders advertise a 5% rate, your entire mortgage application, which includes your credit score, will be reviewed before you receive an offer. A credit score that’s good but not great may result in a rate above advertised rates.

Another reason is that this estimate also includes property taxes of 0.5% per year and about $266 in monthly home insurance and other ongoing costs, like utilities. Your housing-related expenses might be different. 

» MORE: What makes a good credit score?

In addition, if you have other monthly debt payments (student loans, credit card payments), lenders won’t want these payments plus any mortgage payment to exceed 40-44% of your income.

Convert your salary to the monthly payment limits lenders use using this calculator: 

This monthly payment calculator is just a start. There are other factors to consider, including:

  • You may not want to stretch your budget as far as lenders will allow.  
  • The taxes or utilities where you live may eat a higher percentage of your overall monthly payment, reducing the amount left for the mortgage payment itself. 

To get an answer more closely aligned to your situation, you’ll want to use a mortgage affordability calculator. An affordability calculator lets you control more variables when estimating mortgage payments. 

» NEXT: Learn how to apply for a mortgage

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