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Yahoo Finance

How much house can I afford? Here’s how to do the math.

Yahoo Finance
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79% Informative

The median price for a new home has jumped to $ 495,750 , according to the National Association of Home Builders .

The Census Bureau found that the median household income is $ 80,610 .

Mortgage rates have risen sharply since the pandemic, exacerbating the affordability crisis.

There is some relief in sight with a Federal Reserve interest rate cut on the horizon.

A 30-year fixed-rate mortgage with a 5.795% interest rate, along with property taxes and PMI totaling $ 475 per month, the maximum affordable home price would be $ 329,728 .

Save 1% of your home’s purchase price for repairs and maintenance because those costs are yours.