Home » Home Buying
Category Archives: Home Buying
Categories
- Account Management
- Apartment Communities
- Apartment Hunting
- Apartment Life
- Apartment Safety
- Auto
- Auto Insurance
- Auto Loans
- Bank Accounts
- Banking
- Breaking News
- Budgeting
- Building Credit
- Business
- Car Insurance
- Careers
- Cash Back
- Checking Account
- College
- Commercial Real Estate
- Content Marketing Guide
- Credit 101
- Credit Card Guide
- Credit Card News
- Credit Cards
- Credit Repair
- Debt
- DIY
- Early Career
- Education
- Estate Planning
- Extra Income
- Family Finance
- FHA Loans
- Financial Advisor
- Financial Planning
- Financing A Home
- Find An Apartment
- Finishing Your Degree
- Fix And Flip
- Flood Insurance
- Food Budgets
- Frugal Living
- Growing Wealth
- Guest Post Outreach Guide
- Health Insurance
- Home
- Home Buying
- Home Buying Tips
- Home Decor
- Home Design
- Home Improvement
- Home Ownership
- Home Repair
- House Architecture
- Identity Theft
- Insurance
- Investing
- Investment Properties
- Life Insurance
- Loans
- Local Business Marketing Tips
- Local SEO Guide
- Luxury Homes
- Making Money
- Minimalist LIfestyle
- Money
- Money Etiquette
- Money Management
- Money Tips
- Mortgage
- Mortgage News
- Mortgage Rates
- Mortgage Tips
- Moving Guide
- On Page SEO Guide
- Pay-per-click Marketing Guide
- Personal Finance
- Personal Loans
- Real Estate
- Refinance
- Retirement
- Roommate Tips
- Saving And Spending
- Saving Energy
- Savings Account
- Selling A House
- SEO Tips and Guide
- Side Gigs
- Small Business
- Spending Money Wisely
- Starting A Business
- Student Finances
- Student Loans
- Taxes
- Travel
- Unemployment
- Unique Homes
- VA Loans
- Video Marketing Guide
- Website Development Guide
7 Key Home-Buying Numbers to Know When Shopping for a House
Thereâs a lot that goes into buying a new home, starting with finding the right one all the way down to finalizing the paperwork. Somewhere in that process, youâll likely find yourself trying to decipher myriad new terms and figuring out what they mean for you.
Weâve compiled this list of seven key numbers youâll need to know when buying a home â plus the details on how understanding these terms can help you land your dream home.
Here are seven all-important home-buying numbers to know.
1. Cost per Square Foot
One of the first numbers youâll encounter when shopping for homes is cost per square foot. While this number is based on a relatively simple calculation, itâs an important one to understand since ultimately it helps you determine how much house youâre getting for your money.
âCost per square foot is simply the list price divided by the number of livable square feet,â said Tyler Forte, founder & CEO of Felix Homes. âThis number is important because it allows a homeowner to compare the relative price of homes that are different sizes.â
But thereâs more to consider, he said. âWhile cost per square foot is an important metric, you should also consider the layout of the home. In many cases, a home with an open floor-plan may seem larger even if it has a smaller livable square footage.â
Forte defines livable square footage as any interior space thatâs heated and cooled, which is why a garage wouldnât necessarily fit the bill. One of the best ways to understand how much home you can afford is to break it down by cost per square foot, which will vary from city to city and neighborhood to neighborhood.
Work with your real estate agent to understand the differences in cost for various properties to map out what areas and homes are within budget.
2. Earnest Money Deposit
Once youâve found a home you like enough to bid on, youâll quickly start hearing about something called an earnest money deposit (EMD). This is a type of security deposit made from the buyer to the seller as a gesture of good faith.
The amount of the EMD is set by the seller, typically running anywhere from 1% to 2% of the homeâs purchase price. The key thing to keep in mind about EMDs is that they represent your commitment to buying the home, and can be useful in making a compelling offer in a competitive sellersâ market.
âAn earnest money deposit is very important because itâs the skin in the game from the home buyer,â said Realtor Jason Gelios of Community Choice Realty. âIf a home buyer is up against other offers, the EMD can make or break them getting the home.â
âIâve seen lower offers won due to a higher EMD amount, because sellers view the higher EMD as a more serious buyer,â he added.
The money you put toward your EMD comes off the purchase price for the home, so thereâs no reason to be stingy. If you really love the house and have the available cash, you might even consider offering more than the deposit amount your seller is asking. Either way, be sure to start saving up for your EMD early and factor it into any other cash you set aside for your down payment.
3. Interest Rates
Since most home purchases involve a mortgage, youâll want to familiarize yourself with current interest rates. Interest rates dictate how much youâll pay your lender every year to borrow the amount of your mortgage, so youâll want to shop around for the best deal.
âYour interest rate is the annual percentage rate you will be charged by the lender, and the lower the rate you receive, the lower your monthly payment,â said real estate developer Bill Samuel of Blue Ladder Development. âYou should speak with a handful of lenders when starting the process and get a rate quote from each one.â
While interest rates are mostly determined by your creditworthiness (aka credit score) and the type of loan youâre getting, theyâll still vary between lenders. Even a half-point difference in rates can amount to a big difference in your monthly mortgage payment â as well as the grand total you pay for your house.
1/15/21 @ 4:16 PM

1/12/21 @ 9:47 PM

10/16/20 @ 2:07 AM

4. Credit Score
Speaking of credit scores, youâll want to know yours before you get serious about buying a home. Since your credit score helps determine the type of mortgage (and mortgage rate) you qualify for, you need to meet the basic minimum credit score requirements before diving headlong into buying a home.
Forte broke down the term a little more: âA credit score is the numerical grade a rating agency assigns to you,â he says. âCommonly referred to as a FICO score, this grade is made up of many factors such as credit utilization, and the length of your credit history.â
If your credit score is low (under 600), spend some time figuring out why and how you can boost it. Just remember, the better your credit score, the better your interest rate â and the more money youâll save in the long run.
5. Debt-to-Income Ratio
Another personal finance term that comes into play when buying a home is your debt-to-income ratio (DTI). Much like creditworthiness, this number is used by lenders to determine how much of a loan you qualify for and at what rate.
âWhen looking to get approved for a mortgage, a buyer should know what their debt-to-income ratio is,â said Gelios. âThis is the amount of debt you owe per month as compared to your gross monthly income.â
For example, if you earn $6,000 per month but have to pay $3,000 in bills, this would be a debt-to-income ratio of 50%. Gelios says lenders typically view any DTI above 40% as high risk, and with good reason. If over half of your income is accounted for in bills, that would make it significantly harder to make a big mortgage payment every month.
Understanding your DTI isnât just good for lenders, it also helps put your personal finances in perspective when deciding how much house you can afford.
6. Down Payment
The all-important down payment: Many homebuyers use this number to help them determine when theyâre actually âreadyâ to buy a home â based on how much of a down payment they have saved up.
âA down payment is the amount you contribute to the transaction in cash,â said Forte. âMost home purchases are a combination of cash in the form of a down payment and a loan from a mortgage company.â
The old rule of thumb on home purchases was to put down 20%. If that sounds like a lot of money, it is. (Home price $250,000, time 20% = $50,000. Ouch.) For many buyers, a 20% down payment just isnât feasible â and thatâs okay. Forte said the down payment can be as low as 3% of the sales price with a conventional loan, although 10% is more typical.
Remember that any amount you pay up front will ultimately save you money in interest on your mortgage â and putting more money down will lower your monthly payment. Take some time to calculate what your monthly mortgage payment will be based on various down payments. That way youâll know exactly what to expect and how much of a down payment you should aim to save up.
Keep in mind that for any down payment of less than 20%, you may be required to pay private mortgage insurance (PMI), another expense that adds to your monthly payment.Â
7. Property Taxes & Other Expenses
Long before you close on a home, you need to be ready for ongoing expenses such as property taxes, homeownerâs insurance and any potential HOA fees. These expenses tend to slip through the cracks, but itâs important to know about them before you become a homeowner.
âOne of the most overlooked and underestimated numbers when buyers actually locate a home and win an offer on it is the tax amount,â said Gelios. âToo many times, Iâve seen real estate agents list what the seller is paying in taxes at that time. If time allows, a home buyer should contact the municipality and ask for a rough estimate as to what the taxes will be if they closed on the home in X month.â
Since taxes almost always increase when homes change ownership, itâs good to get an updated quote before those payments become your responsibility.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Source: thepennyhoarder.com
What Is Title Insurance, and How Much Does Title Insurance Cost?
barisonal/iStock.com
Buying a home often entails also buying various types of insurance to protect your property, and one type you might need to get is called title insurance.
When you buy a home, you âtake titleâ to it and establish legal ownership. A title insurance policy protects you against the possibility that someone else might have a claim on your home. In essence, it ensures that a homeowner and their lender will be okay in the event that the seller or previous owners didn’t have absolute ownership of the house. (It sounds crazy, but sometimes it turns out that the homeowner is not the only one with rights to a home!)
If you need a mortgage to buy real estate, your lender will likely require you to buy a title policy from a title insurance company. Although it’s a cost home buyers incur, getting a title policy from a title insurance company is critical to establishing peace of mind.
Let’s examine the ins and outs of title insurance, why home buyers need it, how much you can expect to pay, and how you can save on a title insurance policy.
What is title insurance?
Holding a title insurance policy means you and your mortgage lender are protected against any financial loss or title issues due to liens, disputes between prior owners over wills, clerical problems in courthouse documents, or fraudulent claims against the property or forged signatures.
A title search will be performed by your title or settlement company to uncover any issues with your title that could give you legal troubles down the line.
The title company then insures your claim to the property’s title. If anything is missed during the search or there are lawsuits questioning your legal ownership of the property after closing, your title insurance policy will cover the costs of resolving the problem.
Why a title search is required with a mortgage
When getting a mortgage to buy real estate, you’ll find that most lenders will typically require that you get a title search before you close the deal with your escrow company. Basically this would mean you’ll have to hire a title company to search local records on your property. Some of the issues theyâre looking for include the following:
- Disputes between prior owners over wills: If your property was inherited and then sold by the heirs, there could be other heirs contesting the will and claiming ownership of your property.
- Liens for unpaid property taxes.
- Liens for contractors who worked on the home but were never paid.
- Clerical problems in courthouse documents:Â Believe it or not, a simple typo can lead to title claim problems.
- Fraudulent claims against the property or forged signatures: For example, if a group of heirs can’t get a holdout to agree to sell the home, itâs possible that someone will forge a signature on a quit claim deed.
While most homeowners will never need to use their title insurance, its existence offers protection against a potentially aggravatingâand very expensiveâfinancial loss.
Lender’s title insurance vs. owner’s title insurance
There are two types of title insurance: lender’s and owner’s. Almost every lender will require you to pay for a lender’s title insurance policy. This protects the lenderânot youâfrom incurring any costs if a title dispute pops up after closing.
Owner’s title insurance is usually optional, but it’s highly recommended. Without it, you’ll be left footing the bill for all the costs of resolving a title claim, which could be thousands or even hundreds of thousands of dollars. Even though it can feel like you’re hemorrhaging cash when you’re closing on a house, a title insurance policy is one of those things that can save you money in the long run.
“When you consider the benefits of title insurance and some of the unique aspects of title insurance relative to other kinds of insurance, it is clear why itâs risky and ill-advised to purchase real estate without a title insurance policy,” says Brian Tormey of TitleVest in New York City.
You can purchase basic or enhanced owner’s title insurance, with the enhanced insurance policy offering more coverage for things like mechanicâs liens or boundary disputes.
While your title insurance covers you for things such as mistakes in the legal description of your property or human error, be aware that it will have some exclusionsâparticularly in cases where violations of building codes occur after you bought your home.
How much does title insurance cost?
The average cost of title insurance is around $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home.
Title insurance premiums can vary from a couple of hundred dollars to a couple of thousand dollars. Some factors that can affect the cost of your premium include the title search, examination, and expected cost of any title defects.
“In general, each policy price is based on the purchase amount of the home or the total amount of the loan,” explains Tormey. “Title insurance is a highly regulated industry, so title insurance policy types and costs will vary from state to state. Each stateâs Department of Insurance can provide information on the pricing regulations in their state.”
In some states such as Texas and Florida, title insurance premiums are fixed by the government, so you will pay exactly the same amount no matter what. Other states such as California and New Mexico have unfixed premiums, which means that buyers can shop around. Iowa actually underwrites the insurance itself, resulting in the lowest premiums in the country: $110 for properties costing up to $500,000.
Unlike other types of insurance, a title insurance policy is paid with a single premium during escrow while closing for your mortgage. If youâre buying a real estate resale or refinancing, you may be eligible for a “reissue” rate, which could offer a substantial discount off the regular premiumâbecause the title policy is already in effect, and the title research has already been completed.
Here’s a calculator that can help you figure out the cost for your area and purchase price.
How to save on title insurance
In some states, title insurance premiums are the same no matter who you work with, but in the majority of states, you can save money by shopping around. Even in states with highly regulated title insurance industries, there are ways to save. Here are some ways to lower your title insurance costs.
- Shop around. If premiums are unregulated in your state, find the company that offers the best deals. Just make sure you’re not sacrificing customer service to save a few dollars: Resolving a title issue can be stressful, and you want a company that will help you through the process. Read reviews and talk to your real estate agent for recommendations.
- Bundle. Some companies will offer a discount if you bundle your lender’s and owner’s policies.
- Negotiate add-ons. Even if the premium itself is fixed, there are almost always other fees built into your total premium price. See if there is any wiggle room with those items. They may be optional, or the insurance company might be open to discounting them.
- Negotiate with the seller. Closing costs are always open to negotiation, and picking up the tab for the title insurance might be worth it to a seller who’s highly motivated to close the deal. But be wary of using this tactic in a competitive market.
Michele Lerner contributed to this article.
The post What Is Title Insurance, and How Much Does Title Insurance Cost? appeared first on Real Estate News & Insights | realtor.com®.
Source: realtor.com
GSCUÂ Mortgage Rates Reviews: Today’s Best Analysis
Granite State Credit Union (GSCU) provides members with a variety of mortgage products across the state of New Hampshire.
GSCU AT A GLANCE
Year Founded | 1945 |
Coverage Area | New Hampshire |
HQ Address | 1415 Elm Street, Manchester, New Hampshire 03101 |
Phone Number | 1-800-645-4728 |
GSCU COMPANY INFORMATION
- Services the state of New Hampshire
- Offers conventional loans, such as fixed- and adjustable-rate mortgages
- Provides FHA and VA loans to qualifying individuals
- Allows first-time homebuyers to make down payments of zero to three percent
- Member of the NHCUL and CUNA
- Allows borrowers to use gifted funds for the down payment and closing costs on certain loan products
Granite State Credit Union provides a variety of mortgage products to individuals across the state of New Hampshire. It offers traditional loans, such as fixed- and adjustable-rate mortgages, as well as government-assisted loans and options for individuals who cannot put 20 percent down on a new home.
GSCU Mortgage Facts
- Services the state of New Hampshire
- Offers conventional loans, such as fixed- and adjustable-rate mortgages
- Provides FHA and VA loans to qualifying individuals
- Allows first-time homebuyers to make down payments of zero to three percent
- Member of the NHCUL and CUNA
- Allows borrowers to use gifted funds for the down payment and closing costs on certain loan products
Overall
Granite State Credit Union provides a variety of mortgage products to individuals across the state of New Hampshire. It offers traditional loans, such as fixed- and adjustable-rate mortgages, as well as government-assisted loans and options for individuals who cannot put 20 percent down on a new home.
Current GSCU Mortgage Rates
GSCU Mortgage Products
Granite State Credit Union provides a variety of home mortgage products. Its offerings consist of traditional mortgages and government-assisted loans, as well as programs for first-time home-buyers and affordable home refinances.
Fixed-Rate Loans
Fixed-rate loans are the best choice for homebuyers who plan on staying in their home for an extended period. With fixed-rate loans, buyers can expect their principal and interest rates to remain the same throughout the loanâs lifetime. GSCU offers fixed-rate mortgages for lengths of 10, 15, 20, and 30 years.
Adjustable-Rate Loans
An adjustable-rate mortgage (ARM) provides borrowers with an interest rate that may vary throughout the loan term. Typically, these mortgages have a lower initial rate than fixed-rate loans, giving potential customers more financial freedom when looking for a new home.
After the initial period, the rates and payments associated with these mortgages may rise or fall to adjust to market prices. Typically, these costs will fluctuate on an annual basis.
Many companies, including GSCU, provide a cap that prevents these costs from getting too high from one year to the next. GSCU recommends these types of mortgages for home-buyers who do not plan on staying in the house for the loanâs full term. GSCU offers 1/1, 3/1, 5/1, and 7/1 ARMs.
First-Time Homebuyer Loans
GSCU offers excellent deals on mortgages for first-time buyers. The credit union gives borrowers the flexibility to choose a fixed- or adjustable-rate mortgage and even provides no and low down payment options to first-time buyers. The No Down Payment mortgage allows borrowers to take out a 5/1 ARM and pay zero percent down on the home.
The Low Down Payment Adjustable loan offers a 3 percent down payment with a 3/3 ARM and the option to refinance into a fixed mortgage if so desired. The Low Down Payment Fixed loan offers a 3 percent down payment and a 30-year fixed-rate mortgage. For Low Down Payment Adjustable and Fixed mortgages, borrowers can use gifted funds for the down payments and closing costs on their homes.
FHA Loans
Unlike some other credit unions, GSCU offers FHA loans to home-buyers who do not qualify for other loan programs. Borrowers may have a high debt-to-income ratio, low credit score, or the inability to put 20 percent down on the home. The Federal Housing Administration (FHA) created these types of home loans to grant buyers the opportunity to invest in property. GSCU allows 100 percent of the closing costs to be gifted.
VA Loans
GSCU allows veterans, military members, and their spouses to apply for VA loans. These types of mortgages are backed by the U.S. Department of Veterans Affairs (VA). Qualified individuals can make a low down payment on the home and keep up with affordable monthly payments.
HARP Loans
The Federal Housing Finance Agency (FHFA) introduced the Home Affordable Refinance Program (HARP) as part of their Making Home Affordable⢠initiative. HARP allows eligible homeowners to refinance their mortgages into a lower interest rate to keep their finances secure. HARP provides this opportunity for individuals who otherwise may not qualify for refinancing due to their declining home value.
GSCU Mortgage Customer Experience
Granite State Credit Union offers a variety of online resources that help current and prospective borrowers research home loan options. GSCU’s website contains several mortgage calculators, which assist home-buyers in determining how much they can take out on a home loan.
It also provides information about their different mortgage products, which helps borrowers figure out what type of home loan is right for them. GSCU has a Refer-a-Loan option, which incentivizes borrowers who refer a New Hampshire resident or business owner to procure a loan with the credit union.
In exchange for this referral, both parties can receive $25 for consumer loans or $50 for the mortgage and home equity loans.
GSCU Lender Reputation
Founded in 1945, Granite State Credit Union has provided affordable mortgage rates to New Hampshire residents for over 70 years. Its Nationwide Mortgage Licensing System ID number is 477276.
Since the credit union only services the states of New Hampshire, it does not have many online customer reviews. It is not accredited by the Better Business Bureau, and has no reviews on the site, but maintains an A+ rating.
GSCU Mortgage Qualifications
Although GSCU has flexible mortgage qualifications for individuals taking out FHA loans, its qualification requirements for individuals requesting other home loans are similar to mortgage industry standards.
First and foremost, the credit union prioritizes credit score when approving someone for a loan or for calculating their rates. FICO reports that the industry-standard credit score is 740. However, those with credit scores above 760 can expect the best mortgage rates.
Credit score | Quality | Ease of approval |
760+ | Excellent | Easy |
700-759 | Good | Somewhat easy |
621-699 | Fair | Moderate |
620 and below | Poor | Somewhat difficult |
No credit score | n/a | Difficult |
Buyers should typically expect to put 20 percent down on the home, unless they qualify for a government-assisted loan. In some cases, buyers can anticipate paying as little as zero to three percent on their mortgage down payment.
With certain types of loans, such as first-time home-buyer, FHA, and VA loans, GSCU allows borrowers to use gifted funds to make down payments and pay closing costs. However, those taking out a traditional fixed- or adjustable-rate mortgage should anticipate paying these costs on their own.
History of GSCU
Granite State Credit Union (GSCU) was founded in 1945 in Manchester, New Hampshire. Founder John Edward Grace, who previously worked as a city bus driver, put down an initial deposit of $15.
With the work put forth by John and his wife, Betty, GSCU achieved notability and success before merging, in late 2003, with the Acorn Credit Union. GSCU is currently a member of the New Hampshire Credit Union League (NHCUL) and Credit Union National Association (CUNA). It offers a selection of home loan products, including fixed- and adjustable-rate, VA, FHA, HARP, and first-time home-buyer loans.
Bottom Line
If you live in New Hampshire, GSCU may be a great fit for you! With a variety of mortgage products, GSCU has something to offer for everyone. For more information, visit their website.
The post GSCU Mortgage Rates Reviews: Today’s Best Analysis appeared first on Good Financial Cents®.
Source: goodfinancialcents.com
Popular Housing Markets During the Pandemic
Thereâs something weird happening with the real estate markets today. Normally in a recession, demand for rentals goes up while demand for houses goes down. But if thereâs anything 2020 has taught us, itâs that everything is turned on its head right now.
Instead, weâre seeing an interesting trend: despite the ongoing pandemic, home-buying is experiencing higher demand now than they have been since 1999, according to the National Association of Realtorsâ (NAR). If youâve been hoping to buy a home soon, youâre probably already aware of this weird trend, and excited. But is it the same story everywhere? And is a pandemic really the right time to buy?
How the Pandemic is Changing Homeownership
This pandemic is different from any other in history in that many people â especially some of the highest-paid workers â arenât being hit as hard as people who rely on their manual labor for income. This, coupled with an ultra-low mortgage rate environment and a new lifestyle thatâs not fit for a cramped apartment, is creating the perfect storm of high-dollar homebuyers.
âI didnât want to pay someone elseâs mortgage to have three roommates,â says Amy Klegarth, a genomics specialist who recently purchased a home in White Center, a suburb of Seattle where she was formerly renting. âI moved because I could afford to get a house with a large yard here for my goats, Taco and Piper.â
Whether you have goat kids or human kids (or even no kids), youâre not the only one looking for a new home in a roomier locale. According to the NAR report, home sales in suburban areas went up 7% compared to just before the pandemic started. In some markets, itâs not hard to understand why people are moving out.

Where Are People Going?
Apartments are small everywhere, but theyâre not all the same price. For example, homes in cities tend to be 300 square feet smaller than their suburban counterparts. Some of the hottest home-buying markets right now are in areas where nearby rents are already too high, often clustered around tech and finance hubs that attract high-paid workers. After all, if you canât go into the office and all of the normal city attractions are shut down, whatâs the point of paying those high rental costs?
According to a December 2020 Zumper report, the top five most expensive rental markets in the U.S. are San Francisco, New York City, Boston, San Jose, and Oakland. But if youâre ready to buy a home during the pandemic, there are nearby cheaper markets to consider.
If You Rent in San Francisco, San Jose, and Oakland, CA
Alternative home-buying market: San Diego, Sacramento
- Average rent: San Francisco, $2,700, San Jose, $2,090; Oakland; $2,000
- Average home value (as of writing): San Diego ($675,496) and Sacramento ($370,271)
- Estimated mortgage payment with 20% down: San Diego ($2,255) and Sacramento ($1,236)
Big California cities are the quintessential meccas for tech workers, and thatâs often exactly whoâs booking it out of these high-priced areas right now. Gay Cororaton, Director of Housing and Commercial Research for the National Association of Realtors (NAR), offers two suggestions for San Francisco and other similar cities in California.
San Diego
First, is the San Diego-metro area, which has a lot to offer people who are used to big-city living but donât want the big-city prices. An added bonus: your odds of staying employed as a tech worker might be even higher in this city.
âProfessional tech services jobs make up 18% of the total payroll employment, which is actually a higher fraction than San Jose (15.5%) and San Francisco (9.3%),â says Cororaton.
Sacramento
If youâre willing to go inland, you can find even cheaper prices yet in Sacramento. âTech jobs have been growing, and account for 7% of the workforce,â says Cororaton. âStill not as techie as San Jose, San Francisco, or San Diego, but tech jobs are moving there where housing is more affordable. Itâs also just 2 hours away from Lake Tahoe.â
If You Rent in New York, NY
Alternative home-buying market: New Rochelle, Yonkers, Nassau, Newark, Jersey City
- Average rent: $2,470
- Average home value (as of writing): New Rochelle ($652,995), Yonkers ($549,387), Nassau ($585,741), Newark ($320,303), or Jersey City ($541,271)
- Estimated mortgage payment with 20% down: New Rochelle ($2,180), Yonkers ($1,834), Nassau ($1,955), Newark ($1,069), or Jersey City ($1,807)
Living in New York City, it might seem like you donât have any good options. But the good news is you do â lots of them, in fact. They still might be more expensive than the average home price across the U.S., but these alternative markets are still a lot more affordable than within, say, Manhattan.
New Rochelle and Yonkers
Both New Rochelle and Yonkers are about an hourâs drive from the heart of New York City, says Corcoran. If you ride by train, itâs a half hour. Both New Rochelle and Yonkers have been stepping up their appeal in recent years to attract millennials who canât afford city-living anymore (or donât want to be âhouse poorâ), so youâll be in good company.
Nassau
âNAR ranked Nassau as one of the top places to work from home in the state of New York because it has already a large population of workers in professional and business services and has good broadband access,â says Cororaton. If you have ideas about moving to Nassau youâll need to move quickly. Home sales are up by 60% this year compared to pre-pandemic times.
Newark or Jersey City
If you donât mind moving to a different state (even if it is a neighbor), you can find even lower real estate prices in New Jersey. This might be a good option if you only need to ride back into the city on occasion because while the PATH train is well-developed, itâs a bit longer of a ride, especially if you live further out in New Jersey.
If You Rent in Boston, MA
Alternative home-buying market: Quincy, Framingham, Worcester
- Average rent: $2,150
- Average home value (as of writing): Quincy ($517,135), Framingham ($460,584), or Worcester ($284,936)
- Estimated mortgage payment with 20% down: Quincy ($1,726), Framingham ($1,538), or Worcester ($951)
Boston is another elite coastal market, but unlike New York, thereâs still plenty of space if you head south or even inland. In particular, Quincy and Framingam still offer plenty of deals for new buyers.
Quincy
If you like your suburbs a bit more on the urban side, consider Quincy. Although itâs technically outside of the city, itâs also not so isolated that youâll feel like youâre missing out on the best parts of Boston-living. Youâll be in good company too, as there are plenty of other folks living here who want to avoid the high real estate prices within Boston itself.
Framingham
Framingham is undergoing an active revitalization right now in an effort to attract more people to its community. As such, youâll be welcome in this town thatâs only a 30-minute drive from Boston.
Worcester
âNow, if you can work from home, consider Worcester,â says Cororaton. âItâs an hour away from Boston which is not too bad if you only have to go to the Boston office, say, twice a week.â Worcester (pronounced âwuh-sterâ) is also a great place for a midday break if you work from home, with over 60 city parks to choose from for a stroll.
Renting Market(s) | Average Rent for 1-Bedroom Apartment | Housing Market Options & Avg. Monthly Mortgage* |
San Francisco, CASan Jose, CAOakland, CA | $2,700 | San Diego ($2,255) Sacramento ($1,236) |
New York, NY | $2,470 | New Rochelle ($2,180) Yonkers ($1,834)Nassau ($1,955)Newark ($1,069)Jersey City ($1,807) |
Boston, MA | $2,150 | Quincy ($1,726)Framingham ($1,538)Worcester ($951) |
*Average home mortgage estimates based on a 20% down payment.
Should You Buy a House During a Pandemic?
Thereâs no right or wrong answer here, but itâs a good idea to consider your long-term housing needs versus just whatâll get you through the next few months.
For example, just about everyone would enjoy some more room in their homes to stretch right now. But if youâre the type of person who prefers a night on the town, you might be miserable in a rural area by the time things get back to normal. But if youâve always dreamed of a big vegetable garden or yard for the family dog, now could be the right time to launch those plans.
Another factor to consider is job security. And remember that even if youâre permanently working from home today â and not everyone has this ability â living further from the city could limit your future opportunities if a job requires you to be on-site in the city.
Finally, consider this: most homes in outlying areas werenât built with the pandemic in mind. For example, â… open floor plans were popular, pre-pandemic,â says Cororaton. âIf the home for sale has an open floor plan, youâd have to imagine how to reconfigure the space and do some remodeling to create that work or school area.â
Here are some other things to look for:
- Outdoor space
- Area for homeschooling
- Broadband internet access
- Proximity to transport routes
- Office for working from home
Is It More Affordable to Buy or Rent?
There arenât any hard-and-fast rules when it comes to whether itâs cheaper to rent or buy. Each of these choices has associated costs. To rent, youâll need to pay for your base rent, pet fees and rent, parking permits, deposits, renters insurance, and more. To buy, youâll have an even bigger list, including property taxes, maintenance and upgrades, HOA fees, homeowners insurance, closing costs, higher utility bills, and on.
Each of these factors has the potential to tip the balance in favor of buying or renting. Thatâs why it makes sense to use a buy vs. rent calculator that can track all of these moving targets and estimate which one is better based on your financial situation and the choices available to you.
In general, though, most experts advise keeping your housing costs to below 30 percent of your take-home pay when setting up your budget. The lower, the better â then, youâll have even more money left over to save for retirement, your kidâs college education, and even to pay your mortgage off early.
The post Popular Housing Markets During the Pandemic appeared first on Good Financial Cents®.
Source: goodfinancialcents.com