Generally speaking, is a $100,000 salary good enough for someone living in the Southern California area with a small family?

Yes it is good only if you manage your life style, because it all depends on life style, if someone can’t manage his/her life style, believe me $1M is also not enough.

So if you manage your life style you can get even your own house through mortgage.

All you need to calculate some things like;

1: Your PITI must be

$100,000*28/100=$28,000

PITI is principal: Interest: Taxes: Insurance.

2: Your DTI must be

$100,000*36/100=$36,000

DTI contains:

Mortgage, credit card payments, child support and other loan payments

3: Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to survey a person can easily afford mortgage double or even more than the double of his gross salary.

So according to your salary

$100,000*2= $200,000

$175,000*2.5=$250,000

You can easily afford from $200,000 to $250,000 if DTI and PITI is under control.

But if you wish to calculate your affordability, visit;

How Much Mortgage Can I Afford On My Salary Calculator

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