house should cost times your salary
How much house can you afford based on your annual salary? $25,000 a year salary = $50,000 house. $50,000 a year salary = $100,000 house. $100,000 a year salary = $200,000 house. $200,000 a year salary = $400,000 house. This may seem low to some people, but if you want to control your money, this is a great way to do it. Itâs easy to get sucked into spending the bank pre-approved limit which is usually much higher, but they donât have all of your best interests in mind. In addition to the 2x annual income rule, you should also try to pay 20% down and use a 15 year fixed loan.