By Ashley Barker
Published Feb. 27, 2014
The estimated monthly house payment for a typical three-bedroom home is on the rise across the United States, according to housing affordability data released by RealtyTrac.
Monthly house payments — which include mortgage, insurance, taxes and maintenance minus the estimated income tax benefit — increased an average of 21% in the fourth quarter of 2013 from a year ago. RealtyTrac analyzed data from 325 U.S. counties, including 15 in South Carolina.
The average monthly three-bedroom house payment across all counties was $865 in the fourth quarter of 2013 based on a 30-year fixed-rate mortgage with an interest rate of 4.46% and a 20% down payment. The report said that’s up from $714 for homes purchased in the fourth quarter of 2012, based on a 3.35% interest rate.
In the counties analyzed, the average minimum household income needed to qualify was $41,544 for the final quarter of 2013, the report said. It was slightly more than $34,000 in the same period of 2012. The minimum income was based on no more than 25% of household income going to the monthly house payment.
Daren Blomquist, vice president at RealtyTrac, said the monthly cost of owning a home is still less than renting in the majority of markets.
“A potent combination of rapidly rising home prices and the often overlooked but significant uptick in interest rates in the second half of 2013 caused the monthly cost of owning a home using traditional financing to jump substantially in many markets over the last year,” Blomquist said in a statement.
4Q 2012 monthly payment
4Q 2013 monthly payment
Reach Ashley Barker at 843-849-3144 or @AshleyNBarker.