Insurance premiums vary enormously by location, with some areas paying several times more than others. On a $100,000 income with $500 of debts and $60,000 down, $1,000 a year of insurance supports about $331,399 of home and $8,000 a year supports about $274,623.
Price by annual insurance cost
| Annual insurance | Maximum price (28/36) |
|---|---|
| $1,000 | $331,399 |
| $2,000 | $321,071 |
| $3,500 | $305,581 |
| $5,000 | $300,000 |
| $8,000 | $274,623 |
Insurance is the cost most likely to surprise buyers in areas exposed to storms, fire or flood. Get a real quote before you make an offer, and ask about flood or windstorm policies separately.
What we assumed
- Gross income is before tax. Debts are minimum monthly payments (car, student loans, card minimums).
- Property tax 1.2%, PMI if under 20% down, $60,000 down, 6.75% rate.
Related calculators: Home Affordability Calculator, Mortgage Calculator.
Questions people ask
When should I get an insurance quote?
Before you finalize your offer, so the monthly payment you underwrite is realistic.
Estimates for general education, not financial, tax or legal advice. Real results depend on your lender, employer, tax situation and location. See the disclaimer.