TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/648057
TH E M R EP O RT | 7 MDWELL A fter investing in a home, all buyers can expect to be billed monthly, but whether these payments will stretch out for 10, 15, or 30 years can vary depending on the marketplace. A report from Realtor.com found that "not all mortgages are created equal. And depending on where you live, it's feasible to either fast-track that payoff—or come to the harsh realization that the end is nowhere in sight." Looking at the 50 largest U.S. markets, Realtor.com calculated the minimum number of years owners in those markets can ex- pect to pay off their mortgage. In its calculations, Realtor.com as- sumed a 20 percent down payment and a 30-year fixed mortgage rate, then took into account how the markets differed in terms of median home price and income of homeowners in each market. To see the full market-by-market breakdown, visit Realtor.com. CITIES WHERE BUYERS CAN PAY OFF A MORTGAGE IN 6 YEARS OR LESS CLEVELAND, OHIO At the top of the mortgage fast-track list is Cleveland, Ohio, where the average median list price on a home is $128,000. Homeowners typically earn about $76,000 annually and can afford a monthly payment of $1,750, allowing them to pay off their home in 5.4 years. ROCHESTER, NEW YORK In Rochester, New York, which was dubbed one of the best places to raise a family by Forbes, the average median list price is $135,000 and a homeowner can be debt-free in as little as 5.6 years. PITTSBURGH, PENNSYLVANIA No longer is Pittsburgh, Pennsylvania, the rundown Steel City it once was. This tough-as-nails town has a sur- prisingly affordable housing market, especially for millennials, where buy- ers can snag a home for an average of $148,000 and finish their mortgage payments in 5.8 years. BUFFALO, NEW YORK Aside from the Buffalo Bills football team and buffalo wings, Buffalo, New York, is home to buyers who can pay off a median-priced residence of $143,000 in as fast as 5.9 years. COLUMBUS, OHIO When they're not cheering the Ohio State University Buckeye football team to victory, Columbus, Ohio- based buyers will also be applauding the fact that they'll be able to pay off their $165,000 home in 6.1 years. A Marathon or a Sprint? When It Comes to Loan Repayment, Some Borrowers Will Find Themselves in It for the Long Haul, While Others Are on the Fast Track Source: Realtor.com "Where in the U.S. Will You Pay Off Your Mortgage the Fastest—and the Slowest?" CLEVELAND, OHIO SAN DIEGO, CALIFORNIA BUFFALO, NEW YORK ORANGE COUNTY, CALIFORNIA CITIES WHERE BUYERS WON'T BE ABLE TO REPAY UNTIL 26 YEARS OR MORE LOS ANGELES, CALIFORNIA Home prices in Los Angeles, California, have been driven up by the inflow of foreign money to $609,000. For those who cannot afford to buy a home in cash, an annual income of about $100,000 will mean a 29.4-year mortgage amortization period. SAN JOSE, CALIFORNIA Capital of the Silicon Valley, San Jose, California, does not make it easy on homebuyers with an average, median- priced home costing $852,000. Their average payoff: 29.3 years. SAN FRANCISCO, CALIFORNIA The Golden Gate Bridge is not the only attraction in San Francisco, California. This hot market's average listing price has reached $748,000, and buyers better be prepared to pay for the mortgage loan for 27.5 years. SAN DIEGO, CALIFORNIA Perfect weather and sandy beaches that go for miles don't come cheap in San Diego, California. If a buyer purchases a home for the average price of $583,000, they can expect to shell out on this home for at least 26.2 years. DENVER, COLORADO In Denver, Colorado, the snow-filled mountains may be an attractive tour- ist location, but those looking to lay their roots permanently here may find that the mortgage payment duration of 21.3 years on a $474,000 home may not necessarily be worth the mountain views.