For a $200,000 mortgage, what is the annual income requirement?

To determine the annual income requirement for a $200,000 mortgage, it's essential to consider the generally accepted rule of thumb that suggests individuals should not spend more than 28%-36% of their gross monthly income on housing expenses. This includes mortgage payments, property taxes, insurance, and possibly homeowners association fees.

In this case, taking the figure of $200,000 for the mortgage, one can estimate the monthly mortgage payment using a mortgage calculator or standard formulas, which typically factors in the interest rate and loan term. Assuming a modest interest rate and a typical 30-year term, a $200,000 mortgage would likely result in a monthly payment of approximately $1,500 - $1,800.

To ensure that this payment does not exceed 28-36% of the monthly gross income, one can reverse-engineer the necessary income calculation. If we take the upper typical limit of 28% for conservative calculations, the gross monthly income needs to be about $5,357 (since $1,800 is about 33% of $5,357). Therefore, on an annual basis, this translates to roughly $64,284.

However, considering the choices provided, the most closely associated answer is $80,000,