Report: Only 20% of Seattle renters could afford monthly mortgage payment
According to a Zillow report released Tuesday, only 20.3% of Seattle-area renters could afford the monthly mortgage payment on a home selling for the median price.
To calculate the monthly payments, the study assumed a 3.5% down payment, the minimum for a Federal Housing Administration-insured mortgage. It also assumed a mortgage rate of 3%, a mortgage insurance premium of 0.7%, and metro-level estimates of insurance and property taxes.
The study follows a proposal from President Joe Biden to give a $15,000 tax credit to first-time homebuyers — enough to cover a 3.5% down payment in 40 of the 50 largest U.S. metro areas, according to Zillow. This wouldn't be the case in Seattle, where a 3.5% down payment on a median home would cost $18,725, according to Zillow, putting the median home price in the Seattle area at $535,000.
"Legislation that reduces barriers to homeownership could allow millions of renter households to finally enjoy the stability and wealth-building owning a home can provide," Zillow economic analyst Alexandra Lee said in a news release.
https://www.bizjournals.com/seattle/news/2021/03/16/zillow-seattle-renters-afford-mortgage-payments.html
