What salary do you need for a $400,000 mortgage?
A straightforward answer for buyers estimating income requirements before applying.
What salary do you need for a $400,000 mortgage? This question often comes up when buyers try to understand whether a specific home price fits within their income.
Answer
The salary needed for a $400,000 mortgage depends on the interest rate, property taxes, insurance, other debts, and your down payment. Many lenders prefer that your total monthly debt, including the new mortgage, stays near 36%–45% of gross income. Use a mortgage calculator to plug in the loan amount, estimated rate, taxes, and insurance to find the monthly payment, then compare that to your income. For example, if all in housing costs are about $3,000 and the lender allows a 40% debt to income ratio, gross monthly income around $7,500 may be required. Because taxes and insurance vary widely, run several scenarios to see what fits your budget.
Try different rates and assumptions using our mortgage calculator to see how income requirements change.
Browse the full mortgage FAQ page for answers to common rate and affordability questions.