# If I Make \$105,000 a Year, How Much Mortgage Can I Afford?

When it comes to buying a home, the first question on everyone’s mind is “how much mortgage can I afford?” This is especially true if you make a high income, such as \$105,000 a year or more. While having a high income is certainly beneficial, it is only part of the equation when it comes to determining how much you can borrow for a mortgage. Other important factors include your credit score, debt-to-income ratio, and other financial obligations.

## Factors to Consider Before Applying for a Mortgage

If you are making \$105,000 a year, you may be surprised to learn that it is not necessarily an automatic ticket to a large mortgage. Before you start shopping for a home, it is important to consider other factors that may affect your ability to get a loan. For example, your credit score and debt-to-income ratio will play a major role in determining how much you can borrow. In addition, lenders may also look at your employment history, current assets, and other financial obligations.

## Calculating Your Maximum Mortgage Amount

Once you have taken all of these factors into consideration, you can begin to calculate your maximum mortgage amount. You can use an online calculator to help you determine how much you can afford to spend on a home. Generally speaking, your total monthly mortgage payment should not be more than 28% of your gross monthly income. So, if you make \$105,000 a year, your maximum mortgage payment should be around \$2,700 per month.

## Other Expenses to Consider

In addition to your mortgage payment, there are other expenses to consider when purchasing a home. This includes closing costs, insurance, taxes, and other fees. It is important to factor in these costs when calculating your maximum mortgage amount. For example, if you have \$2,700 to spend each month on a mortgage, you may need to reduce that amount if you have other expenses that need to be covered.

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Buying a home is an exciting and rewarding experience, but it is important to make sure you can afford it. If you make \$105,000 a year, you may be able to qualify for a large mortgage, but there are other factors to consider. Be sure to calculate your maximum mortgage amount and factor in closing costs, insurance, and other fees before you sign on the dotted line.