Using the 28% rule, a total monthly payment of approximately $2,572 (principal, interest, taxes, insurance) would require a gross annual income of about $110,000. However, if you have minimal other debt, some lenders may approve you with a lower income. Getting pre-approved gives you a definitive answer based on your full financial picture.

With $80,000 down (20%) at 6.5% for 30 years, the principal and interest is about $2,023 per month. When you add property taxes (~$400/month) and insurance (~$150/month), the total is approximately $2,572. Putting less down will increase your payment and add PMI.

A 15-year mortgage on $320,000 at a slightly lower rate (around 5.5%) would cost about $2,614 per month in principal and interest—roughly $600 more than the 30-year option. However, you'd save over $150,000 in total interest and own your home outright in half the time. Choose based on your monthly cash flow comfort level.