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What Mortgage Can I Get On A 70K Per Year Salary?

Last modified: Jul 24, 2023

If you have a good credit score, make over 70k annually, and have some savings in your bank account, it's the right time to shop for a more permanent location and if you wonder, "What mortgage can I get on a 70k per year salary?" Our guide will tell you all about it.

Factors That Affect Your Budget for Buying a Home

What mortgage can I afford on a 70k salary? The most obvious metric is, of course, your budget. While online calculators are a great way to check how much you should expect to pay for your mortgage, affordability isn't the only component.

Besides the expenses that come with a mortgage, the right location, savings, credit score, and down payment are all part of the equation.

Although you might feel pressured initially, locating a comfortable property within your price range is simple if you meet all the requirements.

Interest Rates

Interest rates play a massive role in determining the total amount of your monthly mortgage. Many individuals monitor these interests and choose to take out the loan when they're at their lowest. 3.99% is the average interest rate on a 30-year mortgage

For example, a 30-year mortgage on $100,000 at a 3% interest rate will cost you $422 monthly. The higher the interest rate, the more expensive the overall monthly payment.

Credit Score

Regardless of the loan type, lenders are responsible for accepting or refusing your application based on your FICO score.

Even though any lender has its requirements, be ready to start applying for a mortgage when your credit score is 620 or over. However, you can always be eligible for an FHA loan if your FICO score is lower than 620 but higher than 580.

Down Payment

Do you have to make a down payment before requesting a mortgage? Well, not necessarily. Many loan programs might require you to deposit a minimum of 3% or 5%, but that's only true for some.

You are making a larger down payment can come with a huge benefit—decreasing the overall amount of your monthly payments. If you saved enough, we recommend putting down at least 20% on a traditional loan to avoid PMI and make your costs even more affordable.

Some lenders can allow you to add someone to a mortgage as a co-borrower if they want to share the burden of the mortgage payments.

Length of Mortgage

Choosing your mortgage's term affects your monthly payment and interest rate. It's true that the more you extend your term, the less you'll pay every month. However, the major drawback is that you'll end up paying more in interest over the lifetime of the mortgage.

Property Tax

Your monthly tax payment can be massive in locations with high property tax rates. Property tax rates are determined based on the state or county of residence and the assessed value of your property.

Here's how you determine the exact value of your property tax: multiply the value of the home you want by your state's tax rate.


Before getting a mortgage, provide your homeowner with insurance that safeguards your house and belongings from natural catastrophes, theft, and liabilities. The location and the size of your property determine the cost of your insurance.

Another type of insurance can protect your mortgage in case of unwanted scenarios such as death or becoming disabled, where the lender will receive the payout, which will be the amount to pay off the remaining mortgage on the home.

Remember—If you made a down payment of less than 20%, you might be required to show private mortgage insurance (PMI).

HOA Fees

Some proprietors may require you to pay an additional homeowner association fee (HOA).

In general, HOA fees are commonly requested to cover some costs related to maintenance, amenities, and concierge services in your new property.


Excellent real estate brokers know the best property deals are about the chosen location. Your residence determines the property value, interest rates, and additional costs.

What Mortgage Can I Get on a 70K per Year Salary?

If you're asking yourself, "What house can I afford on a 70k salary a year?"—we've got you covered.

You should be able to purchase a property that costs between $280,000 and $380,000. That would be the case if your credit score is ideal and you're not currently in massive debt.

Max House Monthly Payment

With annual earnings of $70,000, your monthly gross income is about $5,833. That considered, the mortgage on a 70k salary shouldn't exceed $1,633 each month, including HOA fees, taxes, insurance costs, and interest rates.

Studies estimate that the average monthly payments for a mortgage differ from the chosen term:

  • $1,793 every month for a 15-year payment
  • $1,190 every month for a 30-year payment

Down Payments

As mentioned earlier, many lenders may require you to make a down payment of 20% to avoid getting private mortgage insurance.

Suppose you took a mortgage on a $250,000 property. In this case, you'll need to pay $50,000 as a down payment. So, saving some cash is crucial if you want your payments to be more manageable in the long run.

Monthly Debts

Before taking out a mortgage, remember to adhere to your monthly obligations. These includes:

  • Alimony or child support payments
  • Student, auto, or personal loans
  • Credit card payments

Note that groceries, utilities, and gas bills are excluded from this category.

Mortgage Interest Rates

Interest rates change daily, so you must keep informed before making the final decision. And there is always the option of refinancing your mortgage for better conditions.

The rate you'll qualify for depends on various factors, including time, credit score, and debt-to-income ratio. Today, a 30-year mortgage is estimated to have a rate of 5.46%.

Home Buying Budget

There are various methods for calculating how much of your paycheck should go toward mortgage payments. What you can afford ultimately relies on your income, circumstances, financial objectives, and present obligations. Here are some strategies you can put to use:

  • The 28% rule
  • The 35%/45% model
  • The 25% post-tax model

Bottom Line

When are you reviewing the options of what mortgage can I get on a 70k per year salary? The best thing to consider is purchasing a house within your price range. That will give you room to save money on repairs, upkeep, and emergencies. We also recommend putting away funds to allocate to a more significant down payment.



How much interest will I pay over the lifetime of my home loan?

Expect to pay between $69,000 and 114,000 in interest over the lifetime of your mortgage. The exact figure will be determined by the interest rate, loan amount, down payment, and loan period.

What are additional costs included in a mortgage payment?

As a general rule of thumb, a mortgage comprises four essential elements:

  • The principal (the property value)
  • Interest rate (fixed or variable)
  • Taxes (including HOA fees)
  • Insurance costs

What mortgage can I afford on 70k?

Generally, what mortgage can I get on a 70k per year salary? If you have $0–450 in monthly debt payments, you may afford a mortgage of up to $1,633. If your monthly debt exceeds $450, you should strive for a smaller monthly payment.


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