Quick Answer: $60,000 gross is $5,000 a month before tax. A 28% housing guideline is $1,400 PITI. That is the ceiling we will use for a conservative first-time budget. Some FHA files go higher. Higher is not the same as comfortable.
Run these numbers
$60,000 gross is $5,000 a month before tax. A 28% housing guideline is $1,400 PITI. That is the ceiling we will use for a conservative first-time budget. Some FHA files go higher. Higher is not the same as comfortable.
What $1,400 PITI buys
At 6.5% 30-year with 20% down, 1.2% tax, and 0.35% insurance, a $200,000 home has P&I ≈ $1,012, tax $200, insurance $58, total ≈ $1,270 — inside $1,400. A $230,000 home lands near $1,460 — on the line. A $300,000 home at 7% with 20% down is about $1,985 PITI in our earlier example — too high on this salary unless you have large down-payment help and almost no other debts, and even then the 28% rule is broken.
Other debts matter. A $450 car payment leaves $950 of a 36% back-end on $5,000 income ($1,800 − $450 = $1,350 for housing). That cuts the house, not the car, unless you pay the car off.
Worked example
Income $60,000, debts $250, 20% down, 6.5%, tax 1.2%, insurance 0.35%. Start the affordability calculator and this page’s widget at $200,000. If you have 3.5% down, switch to the FHA calculator and leave room for MIP. Educational only. A lender will use your credit and the actual tax bill.
Mortgage Calculator editorial team
Organization byline. Pages are editorially reviewed; we do not invent CFA/CFP credentials or user-count testimonials. Formulas are documented on the methodology page.
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