How Much House Can I Afford on $70,000 a Year?

On a $70,000 salary, most lenders will approve a total monthly housing payment somewhere between about $1,600 and $2,600. Your existing debts, your down payment and the property tax bill on the specific home decide where you land in that range. In Greater Boston, that usually means a condo or a home in a lower-cost town, not a typical suburban single-family.

How Lenders Run the Numbers

Lenders start with gross monthly income. $70,000 a year is about $5,833 a month. They then apply debt-to-income limits, and the common guideposts look like this:

• 28% for housing alone: about $1,633 a month
• 36% for housing plus all debts: about $2,100 a month
• 43% to 45%, which many programs allow: roughly $2,500 to $2,625 a month

That housing payment includes principal, interest, property taxes, homeowners insurance, mortgage insurance and any condo fee. A car loan or student loan payment comes straight out of the back-end number.

What That Buys, in Example Numbers

These figures are illustrative, not quotes. Assume a 30-year loan at 6.5%, which works out to about $632 a month per $100,000 borrowed. Also assume $500 a month for taxes, insurance and mortgage insurance combined.

• At $1,633 a month, about $1,133 goes to the loan. That supports a mortgage of roughly $179,000.
• At $2,100 a month with no other debt, about $1,600 goes to the loan, or roughly $253,000.
• At $2,625 a month, about $2,125 goes to the loan, or roughly $336,000.

Add your down payment to get a purchase price. A condo fee works against you here. A $400 monthly fee cuts the loan you can carry by more than $60,000 in this example.

What Changes the Answer Most

Property taxes vary widely between Massachusetts towns, so the same price can carry very different monthly costs. Check the actual tax bill on any listing, or look up the rate with the town assessor. The town data explorer is useful for comparing places.

A co-borrower's income, a larger down payment, or a state first-time buyer program with lower mortgage insurance can all stretch your budget. A two-family where a lender counts part of the rent toward your income can do the same. Going the other way, rates above my example shrink the loan quickly.

In my experience, the more useful question is what payment you can live with comfortably, not what a lender will approve. The maximum approval at 45% leaves little room for repairs, which older Massachusetts housing reliably needs.

Bottom Line

On $70,000 a year, plan around a housing payment you can sustain, likely in the $1,600 to $2,100 range unless you have no other debt. Run your own numbers with real tax figures before you shop. If you want to test different prices and rates, the mortgage calculator is here.

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Plato Asadov (Aflatun Asadov)
Licensed Massachusetts Real Estate Salesperson, Lic. #9579004
Brokered by Steve Bremis Realty Group. Equal Housing Opportunity.
Phone: 617-302-7222 · Email: plato@realestoria.com · realestoria.com
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This article was drafted with AI assistance from Plato's research tools and reviewed by Plato before publishing. Information deemed reliable but not guaranteed; it is general education, not advice for your specific situation.