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More Than Half of American Families Can Afford to Buy a New Home -Are you one of them?

February 19, 2011

Home Affordability, measured by median mortgage payment on the current median priced home, as a percentage of median household income, is lower than its been in a generation.  As demonstrated in the illustration below, the median mortgage payment is just 14.9% of the median household income compared to 25% just 5 years ago!

According to data from Movoto.com, a real estate site based in California, more than half of American families can afford to buy a new home based on income levels and listing prices.

“A person with an annual salary of $64,400 could reasonably afford a $215,000 home with a 5 percent down payment, an interest rate of 5 percent on a 30 year mortgage, and property taxes at 1.25 percent, assuming a monthly mortgage payment to monthly income ratio rate of 25 percent”, the company explained in a statement.

Contact us to find out if you can buy a home!

Click her to plug your numbers into a home affordability calculator…http://www.realtor.com/home-finance/financial-calculators/home-affordability-calculator.aspx

For full article visit..http://www.dsnews.com/articles/half-of-families-can-afford-most-homes-on-market-report-2011-02-01

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