How much mortgage can I get on a $120,000 salary?

On a $120,000 salary, you could typically borrow $360,000 to $480,000 depending on the lender and your debt-to-income ratio. Most lenders prefer a housing DTI under 28%.

What would monthly payments be on a $120,000 salary mortgage?

Borrowing $420,000 at 6.5% over 30 years would cost approximately $2,654.69 per month (principal and interest only). Your actual rate may be higher or lower.

2025

Mortgage on $120,000 Salary

On a $120,000 salary, you could borrow between $360,000 and $480,000 for a mortgage.

Conservative (3x)

$360,000

Standard (3.5x)

$420,000

Maximum (4x)

$480,000

Monthly (6.5%)

$2,654.69

Your Income Details

Calculate how much you can borrow for 2025

Your Annual Salary

Partner's Annual Salary (optional)

Down Payment Available

Interest Rate (%)

Mortgage Term (years)

What You Could Afford

Based on $120,000 combined income

$470,000

Maximum Home Price (3.5x)

You Could Borrow

$420,000

Monthly Payment

$2,654.69

Conservative (3x)$410,000

Standard (3.5x)$470,000

Maximum (4x)$530,000

Down Payment$50,000

Loan-to-Value (LTV)

20% down avoids PMI

89%

DTI Ratio

Debt-to-income (housing)

27%

% of Take-Home

Mortgage vs net income

34%

Borrowing on $120,000

With a $120,000 salary, US lenders typically approve 3 to 4 times your annual income, depending on your credit score, debt-to-income ratio, and down payment. This means you could borrow $360,000 to $480,000. Lenders focus on your DTI ratio - ideally under 28% for housing and 36% total.

Down Payment Tips

With a $50,000 down payment, you could afford a home worth $470,000. Putting 20% down avoids Private Mortgage Insurance (PMI) and gets you better interest rates. FHA loans allow as little as 3.5% down with good credit.

Joint Application

Buying with a partner? If they also earn $120,000, your combined borrowing power would be $840,000 at 3.5x. This significantly increases what you can afford.