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Yahoo
35 minutes ago
- Yahoo
I'm a Real Estate Expert: The Salary You Need To Afford a $1 Million Home
Thinking about buying a $1 million home? It sounds glamorous — and maybe a little intimidating. According to Fortune, $1 million can still buy you a lot of house in most parts of the United States, as the median home sale price was $419,200. But before you start daydreaming about that perfect kitchen or backyard oasis, it's worth figuring out what kind of paycheck you actually need to afford that price tag without breaking a sweat. Explore More: Read Next: GOBankingRates spoke with Brett Iwanowicz, the founder and CEO at Brett Buys Roc Houses, to break down the numbers so you know what salary you should be aiming for to comfortably call a million-dollar house your home. 'The ability to purchase a $1 million home depends on multiple elements which include personal income levels along with debt-to-income ratio and down payment requirements and interest rates and total financial responsibilities,' said Iwanowicz. The following analysis also includes the minimum annual income needed to maintain a $1 million home purchase. Here are some key factors to consider. According to Iwanowicz, a common rule for homebuyers involves putting down 20% of the property value which amounts to $200,000 for a $1 million home. The majority of buyers need private mortgage insurance (PMI) to get approved for mortgages that require less than 20% down payment. Find Out: 'A $800,000 loan amount will result after making a $200,000 down payment,' Iwanowicz explained. The mortgage payment amount each month depends on both the interest rate and the duration of the loan (30-year fixed or 15-year fixed). Iwanowicz noted the interest rate stands at 6% per year in this example for a 30-year fixed mortgage. 'An $800,000 mortgage at 6% interest with a 30-year term results in a monthly principal and interest payment of about $4,800,' he added. This also means that the calculated amount does not include payments for property taxes together with homeowners insurance and homeowners' association (HOA) fees. 'Annual property tax rates typically range between 1% to 2% of the home's total value,' said Iwanowicz. He explained that a $1 million home would require $10,000 to $20,000 annual property taxes which equals $833 to $1,667 monthly payments. And the cost of homeowners insurance varies between $100 to $300 per month based on location and coverage. Monthly housing expenses combining mortgage payments and property taxes and insurance would fall between $5,733 and $6,767, according to Iwanowicz. As far as income needed — he said the recommended limit for housing expenses in relation to gross income stands at 28% to 30%. Using this guideline, to afford $6,000 monthly housing expenses you would require a gross monthly income exceeding $20,000. 'This translates to yearly earnings of $240,000,' Iwanowicz concluded. Here, the lender evaluates the total DTI ratio of buyers, which combines every monthly debt payment including car loans, student loans and credit card debt. Iwanowicz explained that most lenders prefer a DTI ratio below 43%. With a yearly income of $240,000 ($20,000 per month) the buyer's total monthly debt payments including mortgage should not exceed $8,600. More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on I'm a Real Estate Expert: The Salary You Need To Afford a $1 Million Home
Yahoo
35 minutes ago
- Yahoo
Home Values Are Surging in These 10 Cities as Demand Heats Up
While home value growth has slowed nationally, there are pockets in the Midwest and Northeast that continue to see astonishing double-digit growth—and they are not necessarily where you might expect. 'The Northeast and the Midwest are home to some of the hottest markets in the country,' says Selma Hepp, chief economist at Cotality. Decatur, IL, leads the nation with annual home sales price growth of 12.4%, according to property data firm Cotality's latest home price index insights report, which analyzed median sales prices for May. And West Virginia sees no fewer than three markets with double-digit price growth on the top 10 list. Driving superior growth in the top markets are affordability, continued demand, and scarcity of inventory. 'The variation in home price growth is largely driven by the availability of homes for sale,' says the report. Markets that saw continued demand without corresponding rebounds in inventory saw the highest surge in prices. 'Affordable markets across the country continue to garner attention from home shoppers,' affirms Hannah Jones, senior economic research analyst at 'Increased demand has driven up competition and pushed home prices higher in these markets while other well-supplied, higher-priced markets have seen home prices level off or even fall. Home supply in the Midwest and Northeast continues to struggle to keep up with buyer demand, which has kept upward pressure on home prices.' 'What we're seeing is the flight to affordability and how growing demand in previously overlooked or stagnant markets is now pushing pricing upward,' of Corcoran, who was the first female broker to be cast on Bravo's 'Million Dollar Listing New York,' tells At the state level, Illinois had the highest annual home price growth, up 6.4% year over year. It's followed by Rhode Island, New Jersey, Wyoming, and Connecticut, which all continue to record more than triple the national rate of price growth. Midwest markets such as Indianapolis, Kansas City, MO, and Knoxville, TN, and markets surrounding the New York metro, continue to outpace their pre-pandemic trends in May. The Midwest is due to affordability, and the New York City outer-suburbs are due to their proximity to the urban center. Still, these hot markets don't signal an overall hotness in prices. Nationwide, year-over-year price growth dipped to 1.8% in May 2025, down from 5% price growth last May and the slowest since winter 2012. High interest rates and home prices are pulling sales trajectories downward. 'While the national home price index continues to move up, the rate at which it's climbing has slowed considerably,' says Hepp. These are the markets with the most price growth year over year: Price growth: 12.4% Median list price: $149,900 Situated around Lake Decatur and the Sangamon River, the community offers plenty of opportunities for water sports such as fishing, boating, and waterskiing. It also boasts a 1,300-acre park for hiking, biking, and running. Price growth: 12% Median list price: $150,000 Just 45 minutes away from Pittsburgh, this market is popular with commuters looking for a more rural vibe and more bang for their buck, as that bigger city has a much larger median price tag of $250,000. Price growth: 11.9% Median list price: $327,000 Just a 2.5-hour commute to Minneapolis, the small port city on Lake Superior is known for its summer destination sandbar Park Point, where billionaire Kathy Cargill made headlines last year after buying up multiple properties on the longest freshwater sandbar for well over their value, then reportedly changing her mind about her plans for the area after significant backlash. Price growth: 10.6% Median list price: $369,900 Just an hour from Albany and huddled on the Hudson River, Glens Falls has a historic and walkable downtown area. Don't confuse it with Glen Falls, in the Catskills. 'It makes sense that a small, post-industrial city like Glens Falls that has robust older housing stock, a quaint downtown, and proximity to amazing destinations like Lake George and Saratoga Springs is seeing price growth right now,' says Jordan. Price growth: 10.6% Median list price: $165,000 Just an hour away from Indianapolis, this more affordable city is home to Ball State University. According to its community page, Muncie 'has become THE HOT real estate market in Indiana.' Price growth: 10.5% Median home price: $170,000 Nestled along the Ohio and Little Kanawha rivers, Parkersburg has a charming downtown area with plenty of shops, live events, craft breweries, and restaurants. Price growth: 10.4% Median home price: $187,450 Charleston is the state's capital and is known for a vibrant arts scene, museums, and its Capitol Market, which hosts dozens of food vendors in a former freight station. Price growth: 10.2% Median home price: $327,000 Located on the Long Island Sound and boasting its own beach at Seaside Park, Bridgeport is on the Amtrak line and has remained relatively affordable despite being a short commute to the famously expensive New York City metro suburbs of Greenwich and Stamford. Price growth: 10.2% Median home price: $469,000 Located at the confluence of the Clearwater and Snake rivers, Lewiston is named for famous explorers Lewis and Clark. Its proximity to the water offers plenty of opportunity for water sports and its dry, temperate climate makes it popular with outdoor enthusiasts. Price growth: 10.1% Median home price: $360,000 The other Lewiston on the list is the second most populous city in Maine, and is north of the most populous city, Portland, in the Maine Lakes and Mountains region. Middle-Class Americans Can Still Afford a Home in Kentucky Without Looking Too Hard Louisville's Housing Market Shines: Why It Ranks in the Top 10 for Affordable Homes Under $500K 10 Most Affordable States Where Solo Buyers Can Afford a Home—and Live Comfortably
Bloomberg
35 minutes ago
- Bloomberg
Mexico Sure It Will Strike Deal With US to Skirt Tariffs
By and Kevin Whitelaw Updated on Save Mexico is projecting confidence that it will fend off a new set of 30% tariffs that President Donald Trump threatened Saturday to impose next month, with talks already underway to avert the worst. After Trump went public with his plan by posting on social media, Mexican President Claudia Sheinbaum noted in speeches near the northern border that every country has been getting a letter from Trump as he implements global protectionist policies. Her team had already begun discussions with the US on Friday and she was confident Mexico would get a deal.
