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Based on a 6.12% interest rate on a 30-year mortgage, if you make a 20% down payment on a $500,000 home, you're looking at a monthly payment of $2,481 for principal and interest.
In Los Angeles, a median-income household would need to put roughly 80% down to afford a typical home and its monthly payments in the city, according to Zillow. Say goodbye to the 20% down payment.
Data source: Calculations by author. Bookmark this page to compare mortgage interest rates from some of our favorite lenders.. 2025's mortgage rates promise more money in your pocket
Earlier this year, Freddie Mac conducted research that found that migrating to more affordable metros saves an average of $600 per month on mortgage payments, based on a 6% mortgage rate.
Based on the 28% rule, your household should aim for an before-tax monthly income of $7,714 — or an annual gross income of about $92,568 ($7714 x 12) — to comfortably afford a $300,000 mortgage.
Assuming the buyer desires to acquire a $275,000 home and earns a minimum of 80% of the median income for their area. ... to save up the 1% down payment of $2,750 for a home with Zillow’s help ...
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