How much house can I actually afford to buy?

The general rule is to spend no more than 28% of your gross monthly income on housing costs (mortgage, taxes, insurance) and keep total debt below 36%. So if you earn $80,000 a year, your monthly housing budget is roughly $1,867. A practical estimate is that you can afford a home priced at about 3 to 4 times your annual income, assuming a 20% down payment and decent credit. On $80,000 that's roughly $240,000 to $320,000. With less down payment or higher debt, that number drops. Your credit score also matters significantly since it affects your interest rate, which directly changes what you can afford. Use a mortgage calculator with your actual income, debts, down payment, and local property taxes to get a precise number.