dcsimg
We research, you save.
Got Questions On Rates? (855) 610-2972

Do you earn enough to buy a home in your city?

By   |  Posted in Infographics

How much income would it take to buy a median-priced in New York or Philadelphia? What about Chicago, Denver or San Francisco?

HSH.com crunched some numbers to determine how much money homebuyers in 25 major metro areas need to earn in order to purchase the median-priced home in each market. The median price is the halfway point for the market, meaning half the properties sold for less and half sold for more during the period we compared. The price amounts come from the National Association of Realtors quarterly survey of existing single-family home sales.

Here's what we found:

[CLICK IMAGE FOR LARGER VIEW]

Related Resources: Mortgage Rates and Mortgage Calculator at HSH.com
Embed the image above on your site.

How did we come up with these figures?

To determine the salaries you see on the map above, we used the median home price for the area, and subtracted 20 percent as a common down payment. With this “loan amount,” we plugged HSH.com’s average interest rate for a thirty-year, fixed-rate mortgage into our Mortgage Calculator to determine a monthly payment for each area. From this figure, we used a 31 percent “front end” debt-to-income ratio* to calculate how much income was needed to qualify to buy the median-priced home. (Taxes and insurance were not considered in the calculation.)

How does your income stack up?

While you might be able to buy a luxury home in one market, you may only be able to purchase little more than a starter home in another. Should you consider moving to a less-expensive area, getting lots more home for the same income? If your income’s not quite enough to buy a median-priced (or higher) home in your market, don’t worry – there are lower priced homes within your grasp, but you’ll probably need to scour the market a little harder to uncover them. Find the best mortgage rates for your situation.

 

“Front end” debt-to-income ratio refers to the percentage of your monthly salary that your mortgage lender may use to go towards your mortgage payment. Lenders may use lower or higher ratios.

More help from HSH.com

  • The salary you must earn to buy a home in 27 metros

    Here’s how much salary you would need to earn in order to afford the median-priced home in your city.
  • Mortgage Rates Radar 05/17/2016: Mortgage rates flat

    HSH.com releases its latest Weekly Mortgage Rates Radar showing virtually no movement in popular mortgage rates during the seven-day period ending May 17, as financial markets are mostly directionless at the moment. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • Mortgage Rates Radar 05/10/2016: Mortgage rates wander downward

    HSH.com releases its latest Weekly Mortgage Rates Radar showing a modest decline in mortgage rates in the seven-day period ending May 10, as financial markets settle in to a quiet period with little economic data to consider. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • Mortgage Rates Radar 05/03/2016: Mortgage rates mostly steady this week

    HSH.com releases its latest Weekly Mortgage Rates Radar showing almost no change but perhaps, the beginning of another decline in popular mortgage rates during the seven-day period ending May 3, as the financial markets turn their focus from the Federal Reserve to incoming data. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
  • HSH.com on the latest move by the Federal Reserve

    The Federal Reserve concluded a meeting today with no change to the federal funds rate and no changes to other monetary policy tools.