For many people buying their own home is the realization of the American dream. But for most Americans, such a goal is impossible, says GOBankingRates.
A recent OnePoll survey carried out for Unison showed that 2 out of 5 millenials (the generation of people born in the late 80’s-early 90-ies) I think that the question of home ownership for them is eliminated.
While the labor market is on the rise, wages remained relatively unchanged. According to the Brookings institution, the average hourly wage in the U.S. for workers aged 25-54 years, adjusted for inflation, since 1979, increased by only 3%.
However, not all so sad. The Wells Fargo survey, published in July 2019, showed that 95% of Millennials-homeowners believe that the joy of owning a home are worth every sacrifice and labor that they have invested to amass it. In addition, a mortgage with a small down payment made purchase of homes more real for young people. 97 mortgage program require a down payment in the amount of 3%, while the minimum lending rate of the Federal housing authority is 3.5% for buyers with a credit rating of at least 580 points.
However, according to the proposals of the portal Zillow, the average price of private house in the United States is $285,000. And this is a big amount for the average American family. Suppose that you are lucky to pay the first payment of 20% of this amount, and you are tied to a fixed mortgage rate of 3.68% for a period of 30 years. In this case, you agree to a monthly payment of $ 1 303.
It is not surprising that at constant wages, high housing prices and costly loan payments many Americans Tsatsa to the prospect of buying their own homes not optimistic. But as you know, the location of the property plays a key role — in the United States there are many cities that are more than liveable and offer affordable options.
Using Zillow data, GOBankingRates analyzed more than 100 cities — the largest housing markets in the country to determine the best location to buy home loan which will get you to do no more than $ 1000 per month. In the process of creating the ranking, analysts have researched the average cost of housing in the city, were taken into account first payment of 20%, the tax on the purchase of real estate and to 3.68% interest rate on a mortgage. Also the study took into account market forecasts and indicators of quality of life in each city.
So if buying your own home is your dream, look to objects in these cities: