$80,230.15. That’s the required salary needed to buy a home in Washington, D.C. if putting a 20 percent down payment, according to HSH.com.
To calculate the required salary needed in order to buy a home in 27 different Metro areas in the U.S., HSH.com used the National Association of Realtors’ (NAR) 2016 fourth-quarter data for median-home prices, national mortgage rate data, and updated tax and insurance data.
“We used standard 28 percent ‘front-end’ debt ratios and a 20 percent down payment subtracted from the NAR’s median-home-price data to arrive at our figures,” wrote HSH.com. “We've incorporated available information on property taxes and homeowner’s insurance costs to more accurately reflect the income needed in a given market.”
When calculating the data, HSH.com reported that the mortgage rate is currently 3.97 percent, while the current median home value is $384,300. Monthly payments then total $1,872.04.
In HSH.com’s article, there is further information on how the required salary changes for those who put 10 percent down instead of 20 percent. If homebuyers put 10 percent down, the required salary increases to $93,499.82.
For further information on Washington, D.C., check out the article here.
• Data on Washington, D.C. [HSH.com]