How Much Home Can a $100k Salary Buy?
With $100,000 of gross income, the 28% rule allows $2,333/month for housing. Assuming 6.5% APR, 30 years, 20% down and typical taxes/insurance, that supports a home around $367,558. The calculator above is pre-filled with this estimate — adjust it to fit your own budget.
What is PITI?
PITI stands for Principal, Interest, Taxes and Insurance — the four parts of a full monthly mortgage payment. Lenders calculate PITI to determine how much home you can afford, because housing costs more than the loan itself.
The 28% rule
Your housing payment should stay under 28% of your gross income. Divide your monthly PITI by 0.28 to see the income you need.
Bi-weekly vs monthly
Paying bi-weekly means 26 half-payments a year — equal to 13 full monthly payments instead of 12. That one extra payment each year can shave years off a 30-year mortgage.