08/16/2026
A $250,000 home may look affordable on paper, but the purchase price is only part of the equation.
With 10% down, a 30-year mortgage at 6% would put principal and interest around $1,349 per month. Once you add estimated property taxes, insurance, and PMI, the total housing payment can be closer to $1,744.
A few things to consider before buying:
โข Aim to keep housing costs at 25% or less of gross monthly income
โข Plan for PMI when putting less than 20% down
โข Budget for property taxes, insurance, maintenance, and repairs
โข Make sure you have an emergency fund after closing
Using the 25% guideline, a household would need roughly $83,700 in gross annual income to keep this estimated $1,744 monthly housing cost at or below 25% of gross income.
The bigger lesson is that being able to qualify for a mortgage does not necessarily mean you can comfortably afford the home.