How much income is needed in 2018 to afford the average home in each state
Now it's easier to estimate your budget and affordability if you are looking to buy a home in any of the states.
The popular finance website How Much collected the average prices of homes in each state, and used the mortgage calculator to estimate the monthly payments required to afford an average home in each of the states.
According to the online source, the figures collected would provide a good guide for the families planning to buy a house in any of the states.
The website explained that it used the average home prices of every state as available in Zillow and used those figures to calculate the mortgage to come at an estimated figure of monthly payments required by a household.
The figures were also based on the assumption that the buyers would contribute a down payment of at least 10 percent. They assumed an interest rate ranging from 4 to 5 percent depending upon the state.
The source also informed that most financial advisors recommend keeping the total cost of the housing no more than 30% of the income.
So based on these figures provided by the website, it is now easier for families to estimate the income that they require if they want to afford a home in any state in the U.S.
The source further discovered that the state, which required the highest income bracket for owning a home, was Hawaii, where the required income was $153,520 for owning a house costing $610,000.
Following closely was Washington, DC, where the required salary was $120,120 for a house worth $499,900. The third-most expensive state then was California and closely following it were the states of Massachusetts and Colorado.
Similarly, West Virginia was the state that required the lowest salary to be able to afford an average home. It only required $38,320 salary for a house costing $149,500. Following closely behind were states like Ohio, Michigan, Arkansas, and Missouri.