What Mortgage Can I Afford on 70K of Salary Per Year: Tips to Help You Find the Right Home


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It's no secret that buying a home is a huge investment. The cost can easily exceed 100K, and in some cases even reach 1 million dollars. If you're like most people, you probably don't have that kind of money saved up. So, how do you go about buying your dream home? One option is to take out a mortgage.

Now, are you asking, "What mortgage can I afford on 70K of salary per year?" We got you covered. In this article, we'll teach you how to calculate it, as well as offer some tips to help you find the right home for your situation.


The Importance of the 28/36 Rule

In real estate investing, there is what's called the 28/36 rule. This rule is a guideline that states that you should not spend more than 28% of your gross monthly income on housing expenses, and no more than 36% on all debts combined. When you read "I Make $70,000 a Year. How Much House Can I Afford?" article, you will learn that this rule is what lenders will use to determine what mortgage you qualify for.

According to this rule, your monthly income before taxes should be at least three times the amount of your proposed monthly mortgage payment. To calculate it, divide your yearly salary by 12. So, if you make $70,000 a year, it comes out to $5,833 per month. Therefore, your monthly mortgage payment should typically be no more than $1,633-$5,833 x 0.28.

The main reason this rule exists is that, if you're spending more than 28% of your income on housing, it could become difficult for you to afford other important things, like food, clothes, transportation, and healthcare. Additionally, if your total debt payments (including your mortgage) exceed 36% of your income, you may have a hard time qualifying for a home loan or getting approved for a mortgage.

So, before you start looking for a home for sale, make sure you understand all the components of the 28/36 rule. This way, you can be sure that you're looking for a home within your budget.


What Types of Mortgage Are Available for Your Home Purchase

So, you already know the answer to your question, "What mortgage can I afford on 70K of salary per year?" The next thing to know is which types of mortgages are available for your situation.

Generally speaking, there are two main types of loans for mortgage homes for sale: fixed-rate and adjustable-rate. Let us take a look at the key features of each type.


Fixed-Rate Mortgage

This type of mortgage has an interest rate that stays the same over the life of the loan. This means that your monthly payments will stay the same, no matter what happens to the market interest rates.

The main advantage of this type of loan is that it provides stability and peace of mind, knowing that your payments won't go up even if interest rates do. However, one potential downside is that you may end up paying more in interest over time if market rates fall.


Adjustable-Rate Mortgage (ARM)

This type of loan, on the other hand, has an interest rate that can change over time. The most common type of ARM is the hybrid mortgage, which starts with a fixed interest rate for a certain period of time (usually three, five, or seven years) and then switches to an adjustable rate for the rest of the loan term.

The main advantage of this type of loan is that it usually has a lower initial interest rate than a fixed-rate mortgage. This means that your monthly payments will be lower at first. However, one potential disadvantage is that your payments could go up if market interest rates rise during the adjustable-rate period.


Other Types of Mortgage Loans

Aside from the fixed-rate and adjustable-rate mortgages, there are also other particular types of loans that you can use to find houses for sale in the US.


Conventional Mortgage Loans

These would be the most common type of mortgage loans. In order to qualify, the borrower must have a minimum credit score of 620 and a debt-to-income ratio of around 50%.

These loans are perfect for those who have good credit and a stable income. However, the minimum credit score requirement may be higher if you're self-employed or have a lower income.


Government-Backed Mortgage Loans

These are loans that are backed by the US government, such as the popular FHA loan, the VA loan, and the USDA loan. What makes these loans attractive is that they usually have more lenient credit and down payment requirements than conventional loans. However, they may come with higher interest rates and fees.


Jumbo Loans

These are loans that exceed the maximum loan limits set by the government. They're often used to finance luxury homes or investment properties. One potential downside of jumbo loans is that they usually have higher interest rates than conventional loans.


Which Type of Loan Should You Get

The type of loan that you should get depends on your financial situation and goals. If you have good credit and a stable income, then a conventional loan would be a good option for you. If you're looking for a more affordable loan with lenient credit requirements, then one of the government-backed loans would be a better choice. However, if you're looking to finance a luxury home or investment property, then you'll probably need to get a jumbo loan.


Tips on Getting Approved for a Mortgage Loan

Here are some tips on how to increase your chances of getting approved for a mortgage loan.


1. Check your credit score and report.

The first step is to check your credit score and report to see if there are any inaccuracies. You can get a free copy of your credit report from AnnualCreditReport.com. If you find any errors, dispute them with the credit bureau.


2. Improve your credit score.

If your credit score is low, work on improving it by paying your bills on time and keeping your debt levels low.


3. Ensure you have a good employment history.

Lenders will want to see that you have a stable employment history. If you've been self-employed for a while, make sure to have financial statements and tax returns to show lenders.


4. Work with a financial advisor.

A financial advisor can help you understand what type of loan would be best for your situation and guide you through the application process.

With these tips, you should be well on your way to taking out a loan for your home purchase. Just remember to shop around and compare different options before making a decision.


Buying Your Dream Home: Important Things to Keep in Mind

With your mortgage loan approved, it's time to start your "homes for sale near me" online search and buy your dream home. Here are some things to keep in mind during the process.


Price Point

You should already have a budget in mind based on the mortgage approval you received. However, it's important to stay realistic with it. Just because you're approved for a certain amount doesn't mean that you have to spend the entire amount. Keep in mind the other costs associated with buying a home, such as closing costs, remodeling expenses, and furniture purchases.

You'll also need to factor in the cost of living in the area where you're buying the home. If the price point of the homes you're looking at is significantly higher than what you can afford, then it's time to start looking at different neighborhoods or areas.

Remember, your goal is to find a home that meets your needs and fits within your budget. Don't let yourself be swayed by homes that are out of your price range.

To make your search easier, it is best to find a real estate agent and discuss with them your budget.

3 people loking at a house


Type of Home

Another thing to discuss with your agent is the type of home you're looking for. Do you want a single-family home, a condo, or a townhouse? What type of layout are you looking for? How many bedrooms and bathrooms do you need?

If you are living alone or with a partner, then you can do a "small houses for sale near me" search. On the other hand, if you have a family or plan on starting one soon, then you'll need to find a bigger home. Keep in mind your current and future needs when searching for homes.

If you're not sure what type of home you want, it's ok to take some time to figure it out. You can start by looking at different types of homes in the areas where you're interested in living. Once you narrow down your search to a few neighborhoods or areas, then you can start looking at specific properties.


Neighborhood Quality

When you're looking at homes, it's important to keep the quality of the neighborhood in mind. You'll want to find a neighborhood that is safe, has good schools and is close to amenities, like grocery stores and parks.

You can research neighborhoods online or ask your real estate agent for recommendations. Once you've found a few neighborhoods you like, then you can start looking at homes in those areas.


Condition of the Property

While some properties you find on homes listings look perfect in pictures, others may actually need some work to fit your needs or to repair minor issues. So, it is best to visit the property in person along with your agent.

When inspecting potential homes for sale, you should keep an eye out for any major problems that will need to be fixed right away. These can include things like a leaking roof, water damage, or termite damage. If you find any issues with the property, you'll need to factor in the cost of repairs when making an offer.

If you're not sure what to look for when inspecting a home, it's ok to bring a friend or family member along who knows more about these things. You can also hire a professional inspector to take a look at the property.

Keep these things in mind when searching for your dream home. With a little patience and effort, you'll be sure to find the perfect place for you and your family.



Buying a home is an exciting time. But, it's important to do your research and be prepared before making such a big purchase.

By knowing the answer to your question, "What mortgage can I afford on 70K of salary per year?", and doing some due diligence when evaluating potential properties, you'll be sure to find the perfect home for your situation.

Do you have any more questions about buying a home? Share them with us in the comments below. And, be sure to check out our other blog posts for more useful real estate advice and tips.

Happy house hunting!