Single Family Monthly Cost

 

Home-buyers starting their home search in Los Angeles- often ask how much a month do properties cost?  I recommend to get a preapproval letter with a lender as quickly as possible when buying a home for two reasons: 1) the lender will tell you how much you can afford 2) if a property comes on the market that you want to buy you will be ready to make an offer right away.

 

In the estimate, I assumed 20% downpayment at a 4% interest rate on a 30 year fixed loan, and the monthly cost includes mortgage payment, taxes, insurance and utilities.  If you are putting less than 20% down, then you will have an additional expense of Mortgage Insurance to factor in. Annual Income was estimated as 35% of monthly cost. Most lenders will lend with a Debt to income ratio no higher than 45%, although if your debt to income ratio is this high you will pay a higher than normal interest rate. These are estimates- talk to your lender, they will be more accurate- this is for helping you get started.

 

Single Family Table

Property Value Annual Household Income Monthly Cost
$300,000 $58,000 $1,699
$350,000 $66,000 $1,946
$400,000 $75,000 $2,193
$450,000 $84,000 $2,440
$500,000 $92,000 $2,687
$600,000 $112,000 $3,284
$700,000 $130,000 $3,772
$800,000 $146,000 $4,263
$900,000 $163,000 $4,754
$1,000,000 $180,000 $5,243
$1,200,000 $220,000 $6,333
$1,400,000 $250,000 $7,321
$1,600,000 $284,000 $8,309
$1,800,000 $320,000 $9,299
$2,000,000 $350,000 $10,287
$2,500,000 $440,000 $12,860
$3,000,000 $525,000 $15,332
$4,000,000 $700,000 $20,376
$5,000,000 $875,000 $25,520
$10,000,000 $1,750,000 $50,442

 

 

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