How Much Can I Spend on a House If I Make 100k a Year

How Much House Can I Afford on 100k a Year?

Wow! You make 100k a year? Great! You want to know how much you can spend on a house if you make 100k a year.

Well, for a start, 100k is a high amount to make for a year by all standards. Especially when you look at it from the perspective of the average income which individuals and families make in our dear beloved country.

Your house will surely make you feel safe and more secured.

For the record, the median income in our country is currently at about half that sum. The median income value has been increasing and this also includes income for an entire household.


To be able to determine how much you can spend on a house if you make 100k a year, a number of things have to be put into due consideration.

If I make 50k, 60k, 70k, 80k or 90k a year, how much house can I afford?


To be able to determine how much you can spend on a house, your budget is a very important tool. You should know that your house is going to take up a large part of your monthly budget.

And your housing expenses are important components of your budget. Being able to understand your needs and spending limits will help paint a clearer picture of how much you can spend on a house.

The most important part of your budget is being able to set your priorities right – know what is necessary and what is not.

Your Debt

Your debt situation is a vital consideration in determining how much you can spend on a house. The overall amount of your debt is going to greatly affect the amount of money you can spend on a house. Such debts to consider include your auto payments, student loan payments, and credit card payments.

Your Lender

The position of the lender is very important in all of these. Before the banks can take a position on your 100k yearly income, they are going to critically look at the numbers.

Then they decide how much lending you qualify for. And it would be in their best interest that you take it all.

But don’t take the entire amount your lender says you qualify for simply because they said so, remember, it is your interest and not theirs that you should care about the most.

Your Lifestyle

Your overall lifestyle will also count. Your lifestyle plays a role because we have folks who make 50k a year and they live like they make 150k, funding a larger part of their lifestyle on credit.

We also have folks who make 100k a year and live like they make 50k simply because they are more prudent with their finances. So what is your lifestyle like, such as travels, eating out, hanging out with your friends and other expected future lifestyle expenses.

Utility Expenses

While deciding how much you can spend on a house from your 100k annual income you should consider what your current utility bill expenses are and what they could be in the future.

Look at the Numbers

To be able to determine how much you can spend on a house if you make 100k a year you also have to do the hard work. Not to worry, it’s not as hard what you do to make a living. It is just called the necessary evil, and I would really prefer you say the necessary good – because it is for the good.

The elements to be considered in these numbers include your mortgage, property taxes, and insurance – including homeowners insurance.

Follow the Rule of 28

The rule of 28 simply states that your mortgage expenses should not be more than 28% of your income. In that case, as someone who makes 100k a year, you should not spend more than 28k on a house.

To decide on the required monthly payments to cover for the 28k, we simply divide 28 by 12, this gives us a monthly payment of 2.33k.

Cost of a House

When looking at the price of the house, as someone who earns 100k a year, you should not go for a house that costs more than two and a half times of your income.

As you earn 100k a year, you should not spend more than 100k x 2.5 on a house. This gives you a maximum cost of 250k. From your 100k a year earnings, if you decide to spend 28% yearly on a house that costs 250k, your payment for the first year would be 11.2 percent of the cost.


Affordability is very important. How much you can spend on a house should be guided by affordability, ensure your target house is a house you can comfortably afford.

I know how much we can hate to deal with these numbers, but sometimes they are necessary. Especially, when it comes to dealing with a matter as important as housing.

100k is no small sum to earn as an annual income, but being prudent can make all the difference. While budgeting how much you can spend on a house, it is also very important to make sure that your housing goal falls within your overall goal and future plans and financial security.

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