Six-figure salary needed to afford local homes
Using information from the National Association of Realtors, mortgage data provider HSH.com put forth a study that shows how much one needs to earn in order to afford a median home in a given region. On a national level, a household needs to take in $61,123 per year to afford a home but this varies drastically when looking at markets along the coast.
In San Jose, the most expensive metropolitan area to a buy a home in, an income of $254,.836 per annum is needed to keep your monthly mortgage payment from swallowing your paycheck. San Francisco requires a salary of $198,978 per year, while San Diegans need to take in $127,292.
The study calculated the annual before-tax income required to cover the principal, interest, taxes and insurance payments against standard mortgage-to-debt earnings ratios.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.