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U.S. cities where first year of homeownership is cheapest

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have a house in san francisco Costs nearly $500,000 first year only. But in many other cities in the United States, the first year of home ownership is more affordable.

Recent data from SmartAsset Shows the average first year cost of owning a home in several major cities. The study analyzed data from the 20 largest US cities and specifically considered her two categories: initial costs and annual recurring costs.

For upfront costs, SmartAsset used Zillow data to assume a 20% down payment for mid-priced homes and an average closing cost excluding escrow and upfront costs. Annual recurring expenses include mortgage payments, average property taxes, and homeowner insurance premiums. The data also assumes a 30-year fixed rate mortgage with an interest rate of 6%.

Note that living in any of these areas will be more expensive than smaller locations due to competition and higher home values. Here are the 10 places with the cheapest year.

1. Indianapolis

down payment: $44,102

annual cost of mortgage: $12,692

First year total cost: $63,244

2. Columbus, Ohio

down payment: $47,261

Annual Mortgage Cost: $13,601

First Year Total Cost: $70,192

3. Philadelphia

down payment: $46,612

annual cost of mortgage: $13,414

First Year Total Cost: $71,590

4. Houston

down payment: $52,307

annual cost of mortgage: $15,053

First Year Total Cost: $79,107

5. Jacksonville

down payment: $58,876

annual cost of mortgage: $16,943

First Year Total Cost: $85,631

6. San Antonio

down payment: $58,059

annual cost of mortgage: $16,708

First Year Total Cost: $87,388

7. Fort Worth, Texas

down payment: $63,465

annual cost of mortgage: $18,264

First Year Total Cost: $94,949

8. Dallas

down payment: $64,101

annual cost of mortgage: $18,447

First Year Total Cost: $95,528

9. Chicago

down payment: $63,098

annual cost of mortgage: $18,159

First Year Total Cost: $96,611

10. Charlotte, North Carolina

down payment: $76,771

annual cost of mortgage: $22,093

First Year Total Cost: $107,524

Indianapolis is the least expensive city on the list, but first-year spending increased from $50,014 in 2021 to $63,244 in 2022, a 26% increase.of Current Median Home Price $220,511 in Indianapolis.

Even though these are the 10 cities with the lowest first year homeownership costs, mortgage costs are still they are taller than they used to be.

For many homeowners, “housing costs are becoming a bigger part of their income,” says a certified financial planner, President and Founder of Bone Fide Wealth.

If you’re thinking about buying a home, figure out your income first to see how housing costs affect your budget.

“You need to know exactly what you’re making. You need to know what you’re spending your money on,” says Boneparth. “You need to know how much you can consistently save and invest.”

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