How Much Should You Earn to Afford a 30-Year Mortgage in Utah?

Mortgage RateIf you are looking for the best mortgage rate here in Utah, you would have to review how much you earn in a year before planning to shop around for the best rates.

A 30-year mortgage with a 10% down payment for an average house in the state would require an annual salary of $83,720. The price in other parts of Utah may be more or less expensive, despite leading the country in terms of housing growth.

More Housing Projects

U.S. Census Bureau data showed that Utah’s housing supply rose by around 22,180 houses to more than 1.08 million units in 2017, up 2.1% year over year. However, the higher stock failed to bring down prices in the state.

For instance, the average cost of a standalone house in Salt Lake County amounted to $345,000, according to the Salt Lake Board of Realtors. A sluggish increase in wages also doesn’t help first-time buyers, as salaries only climbed between 2.3% and 2.7% on an annual basis.

Home price growth in Utah has risen 3.3% per year in the last 26 years. However, Americans in other states would need to earn more than those in Utah if they want to afford a median-priced house.

Other States

A coastal home in Hawaii seems like a nice choice, although buyers need to earn an annual salary of 153,520 for a 30-year mortgage on a $610,000 home. In Washington, D.C., the median home price costs $549,000, which requires an annual salary of $138,440 to afford the same mortgage.

Homebuyers in California should earn $120,120 to cover mortgage payments on a house worth almost $500,000, while those in Massachusetts and Colorado need to make more than $100,000 to afford a home between $415,000 and $420,000.

Conclusion

Once you meet the salary requirements for a housing mortgage in your state, the next thing to do involves looking for the best rates and payment terms. It may be best to find a mortgage planner that can help you from choosing loans up to the application process.