How much house can I afford?
The 28/36 rule is the most widely used affordability guideline. Keep housing costs under 28% of gross monthly income, and total debt under 36%. Lenders may approve you for more — but that doesn't mean you should borrow it.
How much house can I afford on $80k?
Using the 28% rule: $80k/year → $6,667/month → max housing of $1,867/month. With 6.75% rate and 10% down, that is roughly $270,000–$290,000.
What is the 28/36 rule?
Spend no more than 28% of gross income on housing and no more than 36% on all debt combined. Most lenders use 36% total DTI as the limit.
Does my down payment affect affordability?
Yes. A larger down payment reduces the loan needed, lowering monthly payments, and may eliminate PMI, increasing what you can afford.