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 ValueAnnual Household IncomeMonthly 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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