The thought of being a home owner can seem a bit daunting to some who have not been an established homeowner in the past, but recent reports show that these fears are unfounded. As the interest rates have been historically low in the past couple years, the cost of owning a home is surprisingly affordable.
In May of 2013 a report was released that showed that even though the price of homes were increasing and were up (about 11% since last year), that the affordability factor of becoming a home owner in Arkansas was thriving. The cost of becoming a homeowner is still very much a realistic possibility for the average income families.
The recent study shows that the average family income consists of about $62,000. The national median price for a home for sale is sitting at $176,000. This means that an individual would only need an annual income of $36,500 to be able to afford a home at the current national median price. That is assuming a 5% down payment with a 3.5% mortgage interest rate, which is very standard in today economy. In fact most home buyers generally put down MORE than 5% thus decreasing the annual income requirement.
The more a home buyer puts down in the down payment of the home, the less the required amount of income becomes. With a 20% down payment, the buyer would need to make a little over $30,000 a year to be able to buy a home. That is insanely affordable and unfortunately, most perspective home buyers are unaware that this is so.
Due to the historic low mortgage interest rates in the nation and the consistent wage levels, home buyers within the United States have been blessed with a golden opportunity that most are unaware of; becoming a homeowner at an extremely affordable price.
I hope this news brings you hope and encouragement in your day! As always, if there is anything I can do to help answer your real estate questions or assist you in your home search, please don’t hesitate to contact me.
Phone: (479) 298-3224