How Much You Should Earn To Buy a Home
How Much You Should Earn to Buy a Home
DAILY REAL ESTATE NEWS | TUESDAY, DECEMBER 30, 2014
"How much money do you need to make in order to afford a home?
Using data from the National Association of REALTORS®, mortgage site HSH.com pinpointed the minimum salary required to pay for the principal loan amount, interest, taxes, and insurance payments on a median-priced home in some of the largest metro areas in the country.
Nationwide, buyers would need to earn about $51,247 to afford a median-priced home of $217,300, assuming a 20 percent down payment and a 4.37 percent interest rate, according to HSH.com.
However, the minimum income needed to afford a home in specific areas can be much higher. Here are the five metros of the 27 HSH.com analyzed where buyers would need to have the highest salaries to afford a median-priced home there:
San FranciscoSalary needed: $145,351Median home price: $744,400Monthly payment (PITI): $3,392
San DiegoSalary needed: $101,683Median home price: $517,800Monthly payment (PITI): $2,373
Los AngelesSalary needed: $96,514Median home price: $481,900Monthly payment (PITI): $2,252
New York CitySalary needed: $92,271Median home price: $410,800Monthly payment (PITI): $2,153
BostonSalary needed: $84,476Median home price: $399,900Monthly payment (PITI): $1,971
On the other hand, these are the metros that would require the least amount of salary to purchase a median-priced home there:
PittsburghSalary needed: $32,373Median home price: $136,700Monthly payment (PITI): $755
ClevelandSalary needed: $33,909Median home price: $129,900Monthly payment (PITI): $791
TampaSalary needed: $35,732Median home price: $145,000Monthly payment (PITI): $834
CincinnatiSalary needed: $35,765Median home price: $149,000Monthly payment (PITI): $835
St. LouisSalary needed: $35,800Median home price: $150,200Monthly payment (PITI): $835
Source: “The Salary You Must Earn to Buy a Home in 27 Metros,” HSH.com (Dec. 1, 2014)"
**This artical was origionally from RealtorMag.com**