How much house does Dave Ramsey say I can afford?

- How Much House Does Dave Ramsey Say I Can Afford? For decades, Dave Ramsey has told radio listeners to follow the 25% rule when buying a house—remember, that means never buy a house with a monthly mortgage that’s more than 25% of your monthly take-home pay.

## How much house can I afford Dave Ramsay?

A monthly payment that’s no more than 25% of your monthly take-home pay. This leaves plenty of room in your budget to achieve other goals like saving for retirement or putting money aside for your children’s college fund.

## What salary do I need to afford a 400k house?

To **afford** a $400,000 **house**, for example, you **need** about $55,600 in cash if you put 10% down. With a 4.25% 30-year **mortgage**, your monthly **income** should be at least $8178 and (if your **income** is $8178) your monthly payments on existing debt should not exceed $981.

## How much should I spend on a house if I make $100 K?

Simply take your gross income and multiply it by 2.5 or 3, to get the maximum value of the home you **can** afford. For somebody **making** $100,000 a year, the maximum purchase price on a new home **should** be somewhere between $250,000 and $300,000.

## How much house can I afford if I make $125 000?

With the parameters you selected, the most expensive **house** you **can afford** costs $741,802. Your monthly payment **would** be $2,917.

## How much do I need to make to afford a $425000 house?

To **afford** a **house** that costs **$425,000** with a down payment of $85,000, you’d **need to earn** $63,416 per year before tax. The monthly **mortgage** payment **would** be $1,480. Salary **needed** for **425,000** dollar **mortgage**.

## How much income do you need for a $350 000 mortgage?

How much do you need to make to be able to afford a house that costs **$350,000**? To afford a house that costs **$350,000** with a down payment of **$70,000**, you’d need to earn $52,225 per year before tax. The monthly mortgage payment would be $1,219. Salary needed for **350,000 dollar** mortgage.

## What salary do I need to afford a 1 million dollar house?

Expect to **need** at least $100K of **income for a** $1M **home**

But if your finances aren’t quite as strong, you might **need** an **income** upwards of $225K per year to **buy** that **million**–**dollar home**.

## How much do you have to make a year to afford a $500000 house?

How much do you need to make to be able to afford a house that costs $500,000? To afford a house that costs $500,000 with a down payment of **$100,000**, you’d need to earn $74,607 per year before tax. The monthly mortgage payment would be $1,741. Salary needed for 500,000 dollar mortgage.

## How much do you have to make a year to afford a $300000 house?

To afford a house that costs $300,000 with a down payment of **$60,000**, you’d need to earn $44,764 per year before tax. The monthly mortgage payment would be $1,044. Salary needed for 300,000 dollar mortgage.

## How much do I need to make to buy a $200 K House?

To **afford** a **house** that costs $200,000 with a down payment of $40,000, you’d **need to earn** $29,843 per year before tax. The monthly mortgage payment **would** be $696.

## What does Dave Ramsey say about renting?

The short answer is: Your **rent** payment should total no more than 25% of your take-home pay. That’s the magic number. As mentioned above, your monthly **rent** should be no more than 25% of your take-home pay.

## How much income do I need for a 500k mortgage?

**Income** needed for a **500k mortgage**? A $500k **mortgage** with a 4.5% interest rate for 30 years and a $10k down-payment will require an annual **income** of $121,582 to **qualify** for the loan.

## What mortgage can I afford on 60k?

The usual rule of thumb is that you **can afford** a **mortgage** two to 2.5 times your annual income. That’s a $120,000 to $150,000 **mortgage** at $60,000. You also have to be able to **afford** the monthly **mortgage** payments, however. You **can** cover a $1,400 monthly PITI housing payment if your monthly income is $5,000.

## What mortgage can I afford on 70k?

According to Brown, you **should** spend between 28% to 36% of your take-home income on your housing payment. If you make $70,000 a year, your monthly take-home pay, including tax deductions, will be approximately $4,328.

## What’s the most rent I can afford?

A simple rule of thumb is you shouldn’t spend **more** than 1/3 of your after tax salary on **rent**. As an example, your annual salary is 50K that leaves you with $4,166/month. After taxes, you should have around $3,270. One third of 3270 is about $980, and that’s **what** your monthly **rent** should be on 50K a year.