How to figure out if you can really afford a new home? Have rising rents got you panicked to buy a home? Let me explain how to see if you can really afford it. I represent buyers on The Main Line PA. Inflation is soaring and rents are incredibly volatile. Many Main Line PA buyers are looking to stabilize their most basic cost, housing. How to stabilize housing costs? To stabilize housing costs you finance a home with a mortgate rate that is locked in. These are the reasons I am seeing buyers eager to buy. But you need to consider if you can truly afford it with home prices soaring with so little inventory. Lets look at some math and some of what the market is doing.
The national median price of existing homes was $375,300 in March, up 15 percent from $326,300 a year earlier, according to the National Association of Realtors. Rates on 30-year fixed mortgages were 5.10 percent recently, up from 2.98 percent a year ago, according to Freddie Mac. With a down payment of 10 percent on the a median home, the typical monthly mortgage payment is now $1,834, up 49 percent from $1,235 a year ago, taking both higher prices and rates into account. These costs do not take into account property taxes, homeowner’s insurance and mortgage insurance, which is often required on down payments of less than 20 percent, and home maintenance. Bottom line? You really need to do your math. Inflation is at a 40-year high and the cost of many things are rising, from remodeling to simple paint jobs. It may be easy to get caught up in a zestimate and financing estimate, but bidding up and skipping precautions like home inspections can leave buyers really unprepared for home ownership.
Here is the good news, I specialize in helping buyers on The Main Line find the homes of their dreams that do not drain their savings and that also are sound investments, protected by things like inspections. If you are considering buying on The Main Line, take a look at the available listings on my site below, see my buyer resources, and contact me to set up showings. Buying is within reach, when you are buying with me! Kimmy Rolph sells The Main Line and local areas.
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