How Long Do You Need to Save for your Downpayment in Bay East California?

April 22, 2021

According to the data gathered by US Department of Housing and Urban Development, the median family income in California are as follows:
Metro: $87,500
Non-metro: $70, 700
Total: $87,100
The average for the whole country is $78,500. This definitely shows that income and therefore, housing prices are significantly higher as compared to other states.
In the data released by Apartment List, these are the following average rental costs per month in California: January 2021- $1,717, February 2021 – $1718, March 2021 – $1,733, and March 2021 – $1,750.
Presently, these are the median prices of homes in the following areas:
Median Value Owner-Occupied Housing
The average of median prices in these locations is $939,396.40.
Length of Time to Save 10% Downpayment
10% of $939,396.40 is $93, 939.64.
The median family income in California is $87,100 per year or $7,258 in a month. Following the 28/36 rule, a family can take 28% of that which is $1,451.60 in preparation for payment for the monthly mortgage as well once the downpayment is given. As this rate, a family will be ready to pay for the downpayment in 65 months or 5 years. Do take into account that only 28% is allocated to arrive with this number.
Length of Time to Save 3% Downpayment
Did you know that there’s an option of paying only 3% as downpayment? 3% of $939,396.40 is $28, 181.89.
Using the same computation, in more than 19 months or 1 year and 7 months, you have your downpayment for your dream home.
It might seem like a long time before you have enough to buy your dream home. Don’t fret! We will be with you every step of the way, help you work around your housing budget and find more means to make your dream a reality.
There’s so much to discuss, and if you’re interested with a plan that fits your current situation, give us a call. We’ll help you!
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