Buying a home is one of the most exciting—and financially significant—decisions most people make. But with mortgage rates around 6%+ in late 2025, understanding how much house you can comfortably afford is more important than ever. Let’s break it down step by step and look at real-world numbers so you can house hunt with confidence.
🏡 1. Mortgage Rates Today — What Buyers Are Paying
As of December 2025, the average 30-year fixed mortgage rate sits right around 6.2%-6.3%, depending on the lender, your credit, and your loan program. Bankrate
🔹 30-year fixed — ~6.26%
🔹 15-year fixed — ~5.64%
🔹 5/1 ARM — ~5.54%
These aren’t the ultra-low rates of 2020–2021, but they’re still close to long-term historical averages. The Mortgage Reports
📊 2. Affordability: It’s More Than Just the Rate
When people ask “how much home can I afford?”, lenders look at three core things:
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Your Income
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Your Debt Payments
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Your Down Payment / Cash Available
And importantly — they include ongoing homeownership costs like:
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Mortgage principal & interest
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Property taxes
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Homeowner’s insurance
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Private mortgage insurance (if <20% down)
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HOA dues (if applicable)
These affect your actual monthly payment. Zillow
🧮 3. Real-World Affordability Examples
Here’s how to think about actual numbers based on household income. The following are illustrative using general affordability guidelines (roughly keeping mortgage payment at ≤30–36% of gross monthly income):
💡 Example 1: $100,000 Household Income
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Gross monthly income: ~$8,333
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Safe monthly housing budget (30% rule): ~$2,500
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With ~6.2% rate and typical taxes/insurance included, that budget might translate to a home price around $350,000 – $380,000 (estimate). Zillow
💡 Example 2: $75,000 Household Income
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Gross monthly income: ~$6,250
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30% housing budget: ~$1,875
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Estimated affordable home price: $250,000 – $280,000
(This assumes modest taxes and insurance — local costs vary.) Zillow
💡 Example 3: $200,000 Household Income
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Gross monthly income: ~$16,666
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30% housing budget: ~$5,000
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Estimated home price range: $700,000 – $800,000+
(This is a broad range because high incomes vary widely in local tax and insurance costs.) Zillow
🔎 Important: These numbers don’t include other debts (car loans, student loans, credit cards). Lenders use your debt-to-income (DTI) ratio to ensure total monthly debt stays manageable. Zillow
These examples are general estimates — to get a more accurate figure, use an affordability calculator like those from Zillow, Rocket Mortgage, Bankrate, or Freddie Mac. Zillow+1
🧾 4. What Else Should You Factor In?
📌 Property Taxes
Property tax rates vary widely by location. Two homes with the same price can have very different monthly tax costs — so factor this early.
📌 Homeowner’s Insurance
This isn’t optional — it’s required for nearly all mortgages and varies by state and risk factors. NerdWallet
📌 HOA Fees
Communities with amenities like pools or lawn care come with monthly HOA dues — sometimes hundreds of dollars more. NerdWallet
📌 Down Payment & PMI
Putting 20% down lowers your monthly payment and avoids Private Mortgage Insurance (PMI), which can add hundreds per month if you put <20% down. NerdWallet
📉 5. What Mortgage Rates Mean for Your Budget
Even small changes in interest rates make a big difference in monthly payment — and affordability.
For example:
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On a $400,000 mortgage, moving from 6% to 7% could increase your monthly payment by hundreds of dollars, even before taxes/insurance. Kiplinger
This is why it’s critical not just to qualify for a loan, but to feel comfortable with the payment.
🛠 6. Tools to Help You Calculate Your Number
Here are some tools you can use to personalize your affordability:
🔗 Zillow Affordability Calculator — Helps estimate a comfortable monthly payment and max home price based on your income, debt, and down payment. Zillow
🔗 Freddie Mac Affordability Calculator — Personalized guidance based on your budget and loan info. My Home
🔗 Rocket Mortgage Calculator — Lets you adjust income, debt, credit score, and local tax/insurance. Rocket Mortgage
🔗 Bankrate Mortgage Calculator — Great for side-by-side comparisons of different scenarios. Bankrate
Plug in your real numbers — it’s the best way to see exactly what you can afford.
📌 Final Takeaway
Affordability isn’t just about what a lender will approve — it’s about what fits your life and goals. At today’s rates (roughly 6.2%–6.3% on a 30-year fixed mortgage), being thoughtful about income, debts, taxes, insurance, and future plans will help you choose a home that feels right — not just possible. Bankrate
If you’d like help crunching your exact numbers or want a personalized affordability plan for Hickory or the Catawba Valley, we’d be happy to walk you through it!
