How much income is required to buy a $400,000 home?

108 Просмотры

Спасибо! Поделитесь с друзьями!

Вам не понравилось видео. Спасибо за то что поделились своим мнением!

Издатель Jan 23, 2025

How much do you need to make to afford a $400,000 home in 2024?

Let’s look at the numbers for a $400,000 resale property in Chicago, IL. If you do a conventional first time homebuyer loan with just a 3% down payment:

That’s a $388,000 mortgage.

Your principal and interest payment based on an estimated 6.8% rate would be $2,529 monthly payment.

PMI would be another $129 per month.

Estimated property taxes on this property $700 per month.

Homeowners insurance another $150 per month.

This brings your total monthly payment to $3,508.

To be able to afford that payment and account for other debts or $700 per month this shouldn’t exceed 49.99% of your monthly income.

Take $4,208 / .4999 which gives us $8,418 for your monthly gross income target. Multiply that by 12, which gives a total household yearly income of $101,013 in order to afford a $400,000 home.

* Numbers in this video are for informational purposes only; this is not an advertisement.Payment calculations based on general published interest rates at the time of filming, 6.91 APR. Your exact numbers will vary based on current interest rates (which have been pretty volatile lately), credit score, property,taxes, homeowners insurance and potential HOA dues.