How much is a 20% down payment on a $350 000 house?
The median downpayment on a home is 13%, but if a buyer wants to avoid fees, including private mortgage insurance, they may have to put at least 20% down. If a buyer puts 20% down and takes out a $350K mortgage, they're likely putting down around $87,500.
Putting down the standard 20% can help you avoid paying mortgage insurance and interest and could save you thousands of dollars. So you can expect to pay between $10,500 an $70,000 as a down payment on a $350,000 purchase.
Most lenders are looking for 20% down payments. That's $60,000 on a $300,000 home. With 20% down, you'll have a better chance of getting approved for a loan.
On a $350,000, 30-year mortgage with a 6% APR, you can expect a monthly payment of $2,098.43, not including taxes and interest (these vary by location and property, so they can't be calculated without more detail). The payment would jump to $2,953.50 for a 15-year loan.
For a $400,000 home, a 20% down payment comes to $80,000. That means your loan is for $320,000. You can start shopping for a mortgage right away.
Closing costs generally range from 2% to 5% of your loan amount. Eligibility requirements: Usually, you'll need a good credit score (a FICO score of 670 or higher) to qualify for a $350K mortgage, especially if you want the best rates. Lenders may also require proof of income and other assets.
To figure out how much you need to earn for a $350,000 home purchase, start with the 28/36 rule. This guideline states that you shouldn't spend more than 28 percent of your gross monthly income on housing costs, and that you shouldn't spend more than 36 percent on all of your debt combined, including housing.
The median downpayment on a home is 13%, but if a buyer wants to avoid fees, including private mortgage insurance, they may have to put at least 20% down. If a buyer puts 20% down and takes out a $350K mortgage, they're likely putting down around $87,500.
In case of a $300,000 home, that translates to a down payment of $9,000, which is the lowest possible unless you qualify for a zero-down-payment VA or USDA loan. A 620 credit score is typically required, but lenders might have different rules.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
Will interest rates go down in 2024?
Analysts with Fannie Mae and the Mortgage Bankers Association (MBA) both project that rates will fall going into 2024 and throughout next year. Fannie Mae economists expect rates to drop more quickly, falling below 6% by Q4 2024. Meanwhile, the MBA's forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.
Roughly 51% of homebuyers face monthly mortgage payments of $2,000 or more, up from 18% just two years ago. Not only that, but nearly a quarter of homebuyers have payments above $3,000 — up from 5% in 2021.
For example, on a $400K mortgage with a 7% fixed rate, the monthly payment on a 15-year loan is $3,595. The payment on a 30-year loan, by comparison, is $2,661. Just keep in mind that neither amount factors in the cost of insurance or property taxes, which will both be included in your monthly payment.
For most loan types, the credit score needed to buy a house is at least 620. However, a higher score significantly improves your chances of approval. Applicants with scores of 740 or higher generally get the lowest interest rates. Mortgage lenders use a FICO score to determine your creditworthiness.
So, to estimate the salary you'll need to comfortably afford a $300,000 home purchase, multiply the annual total of $24,000 by three. That leaves us with a recommended income of $72,000. (Keep in mind that this does not include a down payment or closing costs.)
Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.
A person who makes $50,000 a year might be able to afford a house worth anywhere from $180,000 to nearly $300,000. That's because your annual salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.
An individual earning $60,000 a year may buy a home worth ranging from $180,000 to over $300,000. That's because your wage isn't the only factor that affects your house purchase budget. Your credit score, existing debts, mortgage rates, and a variety of other considerations must all be taken into account.
You may be able to qualify for a loan with an annual income of $30,000. However, you will likely need to provide a larger down payment and have a strong credit score to qualify. You may also need to consider a lower-priced home or an area with a lower cost of living.
What are interest rates today?
Product | Interest rate | APR |
---|---|---|
30-year fixed-rate | 6.767% | 6.849% |
20-year fixed-rate | 6.601% | 6.705% |
15-year fixed-rate | 6.006% | 6.139% |
10-year fixed-rate | 5.875% | 6.097% |
The 28/36 rule dictates that you spend no more than 28 percent of your gross monthly income on housing costs and no more than 36 percent on all of your debt combined, including those housing costs.
Putting 20 percent or more down on your home helps lenders see you as a less risky borrower, which could help you get a better interest rate. A bigger down payment can help lower your monthly mortgage payments.
A conventional mortgage is not backed by the government, providing competitive interest rates and terms. To qualify for a no-money-down conventional mortgage, you'll typically need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 43%.
Your higher down payment can reward you with additional benefits as well: Lower monthly payments. Less interest paid over the life of the home loan. More equity in your house, which helps protect your investment.
References
- https://www.bankrate.com/real-estate/income-needed-for-300k-home/
- https://www.caranddriver.com/auto-loans/a31280000/average-apr-for-car-loan/
- https://fortune.com/recommends/mortgages/how-much-salary-to-buy-400000-home/
- https://wallethub.com/answers/pl/what-income-do-you-need-for-a-personal-loan-2140798927/
- https://singledebt.in/blog/how-long-does-it-take-to-get-a-credit-score-from-500-to-700
- https://www.cashofferplease.com/blog/what-house-can-i-afford-on-60k-a-year/
- https://www.rocketmortgage.com/learn/how-much-down-payment-for-a-house
- https://propertyclub.nyc/article/how-much-is-a-monthly-mortgage-payment-for-a-250-000-mortgage
- https://themortgagereports.com/75530/down-payment-300000-house
- https://www.sofi.com/learn/content/is-100000-a-good-salary/
- https://www.investopedia.com/is-it-possible-to-get-a-usd-100000-personal-loan-7963262
- https://www.nerdwallet.com/article/mortgages/down-payment-calculator
- https://www.rate.com/resources/how-can-i-afford-a-400k-house
- https://www.cainmortgageteam.com/how-much-house-can-i-afford-with-a-60k-salary/
- https://www.cnet.com/personal-finance/credit-cards/advice/how-to-get-an-800-credit-score/
- https://capitalbankmd.com/homeloans/mortgage-calculators/mortgage-required-income-calculator/
- https://www.lendingtree.com/personal/what-credit-score-do-you-need-for-personal-loan/
- https://money.com/how-much-house-can-i-afford/
- https://www.investopedia.com/easiest-personal-loans-approved-7644059
- https://www.credit.com/blog/average-credit-limit/
- https://www.nerdwallet.com/article/finance/580-credit-score
- https://www.creditkarma.com/credit-scores/800
- https://www.bankrate.com/real-estate/buying-a-house-800-credit-score/
- https://www.rocketmortgage.com/learn/what-credit-score-is-needed-to-buy-a-house
- https://wallethub.com/answers/cc/580-credit-score-credit-card-1000373-2140845988/
- https://themortgagereports.com/70827/70k-per-year-salary-how-much-house-can-i-afford
- https://markets.businessinsider.com/news/commodities/housing-market-unaffordable-mortgages-blackknight-real-estate-property-house-prices-2023-9
- https://www.acornfinance.com/blog/personal-loans/800-credit-score-personal-loan/
- https://wallethub.com/answers/pl/credit-score-for-2000-personal-loan-1000461-2140767338/
- https://stellarfi.com/answer/what-percentage-of-the-population-has-a-credit-score-over-800
- https://www.businessinsider.com/personal-finance/average-mortgage-interest-rate
- https://thisismortgage.com/if-i-make-70000-a-year-what-mortgage-can-i-afford/
- https://www.chase.com/personal/credit-cards/education/credit-score/900-credit-score
- https://www.bankrate.com/real-estate/income-needed-for-400k-home/
- https://www.sofi.com/learn/content/10000-personal-loan/
- https://www.marketwatch.com/guides/personal-loans/2000-personal-loan/
- https://wallethub.com/answers/cs/what-percentage-of-population-has-over-800-credit-score-2140839387/
- https://www.lendingtree.com/debt-consolidation/what-it-takes-to-earn-an-excellent-credit-score/
- https://www.experian.com/blogs/ask-experian/credit-education/score-basics/750-credit-score/
- https://www.bankrate.com/loans/personal-loans/average-credit-score-for-personal-loans/
- https://www.acornfinance.com/blog/personal-loans/5k-personal-loan/
- https://www.cbsnews.com/news/this-would-be-your-monthly-mortgage-payment-for-a-400000-home/
- https://thisismortgage.com/if-i-make-65000-a-year-what-mortgage-can-i-afford/
- https://www.calculator.net/down-payment-calculator.html
- https://www.nerdwallet.com/mortgages/mortgage-rates
- https://www.financialsamurai.com/credit-score-needed-to-get-the-best-mortgage-rate-possible/
- https://wallethub.com/answers/pl/how-much-can-i-borrow-with-a-800-credit-score-1000508-2140806885/
- https://www.credible.com/mortgage/100000-mortgage
- https://moreirateam.com/blog/how-much-is-the-down-payment-for-a-three-hundred-and-fifty-thousand-dollar-house/
- https://www.upstart.com/credit-score/580-credit-score
- https://cred.club/check-your-credit-score/articles/how-to-raise-your-credit-score-by-200-points-in-30-days
- https://wallethub.com/best-banks-for-personal-loans
- https://www.fastexpert.com/blog/income-to-afford-a-500k-house/
- https://www.bankrate.com/real-estate/what-credit-score-do-you-need-to-buy-a-house/
- https://www.credible.com/mortgage/250000-mortgage
- https://wallethub.com/credit-score-range/825-credit-score
- https://www.creditrepair.com/blog/mortgage-and-housing-information/buy-home-california/
- https://financialbestlife.com/how-much-house-can-i-afford-with-100k-salary/
- https://www.solaritycu.org/post/articles/does-a-higher-down-payment-make-your-offer-stronger
- https://wallethub.com/answers/pl/monthly-payment-on-10000-personal-loan-1000450-2140762722/
- https://www.foxbusiness.com/personal-finance/how-much-will-a-400000-mortgage-cost
- https://www.bankrate.com/finance/credit-cards/what-to-do-after-card-apr-increase/
- https://www.nerdwallet.com/article/finance/800-credit-score
- https://www.marketwatch.com/guides/personal-loans/20000-personal-loan/
- https://www.bankrate.com/real-estate/income-needed-for-350k-home/
- https://www.investopedia.com/average-credit-scores-by-age-5214511
- https://www.bankrate.com/finance/credit-cards/how-to-get-800-credit-score/
- https://www.marketwatch.com/guides/mortgages/mortgage-rates-for-monday-03-04-2024/
- https://www.unison.com/blog/10-percent-versus-20-percent-down-mortgage/
- https://www.experian.com/blogs/ask-experian/credit-education/score-basics/825-credit-score/
- https://www.cbsnews.com/news/how-much-income-do-you-need-to-buy-a-250000-home/
- https://wallethub.com/answers/pl/30000-personal-loan-monthly-payment-1000450-2140762727/
- https://wallethub.com/answers/cc/credit-score-needed-for-discover-card-1000338-2140658738/
- https://www.cnbc.com/2022/10/13/finance-coach-how-i-got-to-a-perfect-850-credit-score.html
- https://wallethub.com/credit-score-range/720-credit-score
- https://www.investopedia.com/what-are-hardship-personal-loans-7963276
- https://themortgagereports.com/22502/how-to-buy-a-home-50000-per-year-income
- https://www.sofi.com/learn/content/monthly-cost-350000-mortgage/
- https://www.chase.com/personal/mortgage/education/financing-a-home/what-percentage-income-towards-mortgage
- https://www.tiktok.com/@humphreytalks/video/7307002350693125418
- https://www.moneygeek.com/personal-loans/how-to-get-a-30000-personal-loan/
- https://www.sofi.com/learn/content/monthly-cost-200000-mortgage/
- https://www.fool.com/the-ascent/credit-cards/articles/heres-how-many-americans-have-a-perfect-850-credit-score/
- https://listwithclever.com/real-estate-blog/how-much-house-can-i-afford-70k/
- https://www.businessinsider.com/personal-finance/how-much-down-payment-for-a-house
- https://www.rocketmortgage.com/learn/mortgage-payment-on-400k
- https://www.credible.com/mortgage/350000-mortgage
- https://www.credit.com/blog/personal-finance-how-to-increase-credit-score/
- https://nypost.com/mortgages/350000-mortgage/
- https://www.ramseysolutions.com/real-estate/how-much-down-payment-do-you-need
- https://www.sofi.com/learn/content/monthly-cost-500000-mortgage/
- https://www.noradarealestate.com/blog/what-credit-score-is-needed-to-buy-a-house-with-no-money-down/
- https://www.quora.com/How-can-I-get-a-house-in-California-if-I-make-30-000-at-year-I-shouldn-t-have-to-work-2-jobs-to-afford-a-house-because-my-predecessors-were-much-lazier-and-able-to-afford-a-house-with-one-income
- https://www.investopedia.com/800-plus-credit-score-how-to-make-the-most-of-it-4685008
- https://www.sofi.com/learn/content/i-make-36k-a-year-how-much-house-can-i-afford/
- https://www.lendingtree.com/personal/personal-loan-calculator/
- https://wallethub.com/answers/pl/1000-dollar-loan-no-credit-check-1000434-2140751718/
- https://www.nerdwallet.com/article/finance/720-credit-score-is-it-good-or-bad
- https://www.fibe.in/blogs/how-credit-card-limit-is-determined/
- https://www.solosuit.com/posts/raise-credit-score-40-points
- https://thepointsguy.com/credit-cards/credit-cards-with-highest-limits/
- https://newsilver.com/the-lender/how-much-house-can-i-afford/
- https://www.bankrate.com/real-estate/what-is-the-28-36-rule/
- https://www.creditninja.com/blog/who-will-give-me-a-loan-when-no-one-else-will/
- https://www.nerdwallet.com/article/mortgages/whats-exact-credit-score-need-buy-home
- https://wallethub.com/answers/pl/monthly-payment-on-70000-personal-loan-1000450-2140763828/
- https://www.bankrate.com/loans/auto-loans/0-apr-car-deals-are-they-worth-it/