$56K salary needed for typ­i­cal area home

Baltimore Sun - - NATION & WORLD - — Natalie Sher­man

A buyer needs an an­nual salary of about $56,000 to af­ford a typ­i­cal home in the Baltimore area, ac­cord­ing to the lat­est anal­y­sis by a com­pany that tracks mort­gage and loan in­for­ma­tion. The anal­y­sis places Baltimore in roughly the mid­dle of the pack in terms of af­ford­abil­ity of the 27 metro ar­eas stud­ied by HSH.com. The firm as­sumes a buyer can spend about 28 per­cent of gross monthly in­come on pay­ments and also takes into ac­count lo­cal mort­gage in­ter­est rates, prop­erty taxes and in­sur­ance costs for the rank­ing.

The cal­cu­la­tion of af­ford­abil­ity as­sumes a buyer will make a 20 per­cent down pay­ment and re­ceive a 30-year mort­gage on a home priced at the me­dian for the metro area. In Baltimore, that’s a home that costs $264,300, with a monthly pay­ment of about $1,300. Baltimore’s costs are a bit higher than the na­tional av­er­age. The me­dian cost of a home na­tion­ally is $240,000, re­quir­ing an an­nual salary of about $52,000.

In San Fran­cisco, the most ex­pen­sive mar­ket, a buyer would need a salary of more than $152,000 to af­ford a home priced at the me­dian, $835,400. In Pitts­burgh, the least ex­pen­sive, a buyer could af­ford a typ­i­cal home on about $32,000 a year. Baltimore of­fers a dis­count com­pared to nearby Wash­ing­ton, where a buyer would need a salary of about $78,460 to af­ford a home priced at the me­dian, $394,000.

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