How Much Should You Earn To Own A House In Different States?

We all have passionate dreams. Nevertheless, in order to live their dream, one needs to plan efficiently. So if someone is dreaming for a “home sweet home”, prior planning is surely needed. We can assume that they have already given a thought about how much they should earn to buy the same. Again, before this, one has to decide about the location first. HowMuch.net, a finance website, has recently researched about the housing prices in different states.

Source

In order to draw conclusions, the website considered various factors, ranging from average prices to interest rates, along with the down payments. 10% down payment was considered payable on behalf of the buyers. Zillow was the source from where they were able to gather the average home prices in every state. Afterwards, those prices were merged into the mortgage calculator to know about the monthly installments. An interest varying from 4 to 5 per cent was also considered.

Because of all this, financial advisors suggest that total housing cost should not be more than 30 % of the gross income (i.e. the amount before taxes, retirement savings, etc.); the same rule was considered the best to calculate the minimum salary required for average home affordability in each state. The figures are based on 30-year mortgages.

Source

HowMuch.net’s findings were further upgraded by taking into account the latest U.S. Census Bureaudata on median household income. This was done in order to determine the actual home affordability for the average person living in that state.

Therefore, now it’s high time to know about the home prices being charged in several states.

Alabama

Q: What is the salary needed to afford a home?

A: $47,960

Q: What is the median household income?

A: $46,257

Alaska

Q: What is the salary needed to afford a home?

A: $67,280

Q: What is the median household income?

A: $76,440

 

Source

Check Out More On The NEXT Page.