You’ve saved enough for a down payment and covered your closing costs. Those big hurdles are often the largest obstacles for new homeowners to overcome. In a study of the true cost of first year homeownership, SmartAsset conducted a study of just how much buyers need to shell out in year one in their new home.
Looking at data across 20 major metropolitan markets in the U.S., SmartAssest used six metrics to establish the true cost of homeownership in the first year after a home is purchased including median home value, down payment, closing costs and taxes.
Indianapolis, Indiana was rated as the city with the lowest cost for new homeowners with $50,014 needed in year one for closing costs, insurance, property taxes and other expenses. San Francisco was ranked as the least affordable large city for first-year homeowners in the U.S. with a staggering $364,900 need. In San Diego, that amount was $203,466.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 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 (877) 700-0924 and your questions may be featured in an upcoming article.