"Homebuyers typically need to earn between $120,000 and $160,000 annually to afford a $500,000 home with a conventional 30-year mortgage and a 10%-20% down payment."
"Monthly housing expenses, including mortgage, property taxes, insurance, and HOA fees, should not exceed 28% to 31% of your gross monthly income."
"The estimated total monthly housing cost for a $500,000 home is around $3,382, requiring a monthly income of approximately $12,000 to comfortably afford."
"Factors impacting borrowing power include down payment amount, debt-to-income ratio, and interest rates, all affecting the overall affordability of a home."
To afford a $500,000 home, homebuyers generally require an annual income between $120,000 and $160,000. This estimate is based on obtaining a conventional 30-year mortgage with a 10%-20% down payment. Lenders recommend that monthly housing costs should not exceed 28% to 31% of gross monthly income. The total estimated monthly cost for such a home is approximately $3,382, necessitating a monthly income of around $12,000. Other influencing factors include the size of the down payment, debt-to-income ratio, and prevailing interest rates.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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