I'm trying to think ahead and save as much as I can so I can afford something nice. Here are my assets:

180,000 in mutual funds growing around 10-12% a year (hit 16% last year)

Have zero debt and no loans/credit cards

Looking to make a down payment of $100,000

And hopefully able to make $36,000 after taxes with a business degree.

So how much home do you advise I get, theoretically speaking?


  • 5
    If you want to make a down payment of $100K on a house (in the US) and thus get a mortgage of $400K (20% down) or more than $400K (less than 20% down), you may find banks to be very reluctant to make such a large loan if your take-home pay is $36K. – Dilip Sarwate Jun 14 '15 at 18:07
  • What can your income be in 3 years? 60K, 75K? You may want to hold off a bit until our income rises. It is very low for the amount you have invested, and for someone with a 4 year degree, and for someone living in the US. – Pete B. Jun 15 '15 at 16:41

On $4K/mo gross about $1000/mo can go to the mortgage, and at today's rates, that's about $200K of mortgage the bank might lend you.

Income is qualified based on gross, not net, so if $48,000/yr is wrong, please scale my guesstimate down a bit. In the end, today's rates allow a mortgage of nearly 4X one's gross income. This is too high, in my opinion. I'm answering what the bank would approve you at, not what I think is wise. Wise, in my opinion is 2.5-3X one's income, tops.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.