$75,000 Homebuyers Can Afford $215,000-$270,000 Homes as 6.5% Rates Squeeze Budgets
Updated
Updated · CBS New York · Jun 22
$75,000 Homebuyers Can Afford $215,000-$270,000 Homes as 6.5% Rates Squeeze Budgets
1 articles · Updated · CBS New York · Jun 22
Summary
$75,000-a-year buyers can typically target homes priced about $215,000 to $270,000, far less purchasing power than the same income would have supported a few years ago.
At the 28/36 lending rule, that salary yields about $1,750 a month for total housing costs, leaving roughly $1,300 for principal and interest after taxes, insurance and possible PMI.
At a 6.5% 30-year mortgage rate, $1,300 a month supports a loan near $205,000; with 10% down buyers land around $225,000, and with 20% down they can reach roughly $255,000.
Existing debts such as a $450 car payment and $200 in student loans cut borrowing power directly, while lower rates, debt paydowns and bigger down payments can raise the ceiling by tens of thousands.
State and local loan programs, down-payment assistance, and lower-tax or lower-insurance markets can further stretch budgets, underscoring that affordability now depends as much on carrying costs as listing prices.