Before starting your home search, carefully evaluate your income to see if you can afford a property priced at $1.5 million. To get a mortgage for this amount, you’ll likely need a jumbo loan with higher interest rates. Remember to budget for closing costs, which typically total 2-5% of the purchase price.

The 28/36 rule states your new housing payment should not exceed 28% of your monthly pretax income, and your total monthly debts should be under 36%. Using these guidelines, you’d need an income of $345,257 per year to afford a $1.5 million home.

Another approach is the 25% rule, which focuses on post-tax income. To afford a $1.5 million home, your mortgage payment should not exceed 25% of your monthly post-tax earnings, requiring a monthly income of about $32,224.

Consider the 35/45 rule, which looks at both pretax and post-tax income. For a $1.5 million home, you’d need a monthly pretax income of $23,017 or an annual income of $276,206 to afford the mortgage.

Experts recommend budgeting 1-4% of a home’s purchase price for maintenance costs annually. Remember to factor in property tax costs and homeowners insurance premiums, which may increase over time. Use the Yahoo Finance home affordability calculator to determine if you can afford a $1.5 million house.

To afford a $1.5 million home with current interest rates, you would need an annual pretax income between $276,206 and $345,250. The salary needed depends on various factors like interest rates, down payment size, and debts. A $1 million 30-year jumbo mortgage at 6.35% would require a $6,222 monthly payment on a $300,000 salary.

A jumbo loan can help you afford a $1.2 million home, typically requiring down payments between 10-30%. This allows you to spread the cost of the home over 30 years.

Read more at Yahoo Finance: What income is needed to afford a $1.5 million house?