Higher Salaries Are Needed to Afford Monthly Home Payments

SmartAsset recently analyzed salaries needed to afford home payments in the 15 largest cities in the U.S. Four California cities made the top five; one would have to earn between $60,875 and $164,666 annually to afford home payments in those cities.

While the top two cities, San Francisco and San Jose, may require six-figure salaries to afford home payments, in 10 of the 15 cities ranked, the median household income is enough to afford median home payments. CNBC reports that Indianapolis residents need only $21,955 in annual income to afford monthly home payments after putting 20 percent down. In nearby Chicago, one would need to make $48,384 annually.

SmartAsset crunched the numbers using its mortgage calculator, discovering that the inhabitants of three of the country's largest cities have to rake in more than $110,000 a year to pay for a home to call their own (when you factor in the mortgage, property taxes and homeowners insurance). That whopper of a tab is near double the average of $57,617 needed by home buyers nationwide.

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