Who Can Afford To Purchase A Home In Sandwich ?
Affordability is a function of income, purchase price, down payment, interest rates, taxes, insurance and possible other financial commitments of the purchaser.
Income
Obviously income varies from job to job. The average teacher in the sandwich school earns $40,000 per year, while a police officer earns $50,000 and an employee maintaining the town roads earns on the order of $32,000 per year.
Purchase Price
The median price of a home in Sandwich in 2005 was $254,000. Obviously price varies with size, quality, location etc. Listings of current houses for sale in Sandwich and the asking price can be found on line.
Down Payment
Obviously the more you put down the lower your monthly payments. Since the recent “Credit Crunch” most lenders appear to be looking for 10% to 20% of the purchase price.
Interest Rates
Interest rates vary daily but 30yr fixed rate loans with reasonable down payments (10% to 20%) have hovered in the 6% to 6.5% range. Current rates can be seen on line.
Taxes
Real estate taxes in Sandwich in recent years have hovered in the area of $10.50 per thousand of assessed value, with assessed value being on the order of 85% of market value. This implies an annual tax bill of on the order of $9.00 for every $1,000 of purchase price. This means that a house purchased for $250,000 would have a tax bill of $2,250/Yr.
Insurance
The authors experience suggests that insurance on a dwelling costs on the order of $300 for each $100,000 of market value or on the order of $750 per year for a $250,000 house.
Other Monthly Debt
Most folks have a few non home related debts such as student loans or car payments that also get factored into the affordability equation.
Affordability Examples
Taking into account these factors we have calculated the affordability for folks who work in town. Using some basic assumptions we can see that many folks who work in Sandwich cannot afford to purchase a home here. i.e. what can you get in town for between $80k to $120k. You can try the calculator online for yourself using other assumptions.
Affordability is a function of income, purchase price, down payment, interest rates, taxes, insurance and possible other financial commitments of the purchaser.
Income
Obviously income varies from job to job. The average teacher in the sandwich school earns $40,000 per year, while a police officer earns $50,000 and an employee maintaining the town roads earns on the order of $32,000 per year.
Purchase Price
The median price of a home in Sandwich in 2005 was $254,000. Obviously price varies with size, quality, location etc. Listings of current houses for sale in Sandwich and the asking price can be found on line.
Down Payment
Obviously the more you put down the lower your monthly payments. Since the recent “Credit Crunch” most lenders appear to be looking for 10% to 20% of the purchase price.
Interest Rates
Interest rates vary daily but 30yr fixed rate loans with reasonable down payments (10% to 20%) have hovered in the 6% to 6.5% range. Current rates can be seen on line.
Taxes
Real estate taxes in Sandwich in recent years have hovered in the area of $10.50 per thousand of assessed value, with assessed value being on the order of 85% of market value. This implies an annual tax bill of on the order of $9.00 for every $1,000 of purchase price. This means that a house purchased for $250,000 would have a tax bill of $2,250/Yr.
Insurance
The authors experience suggests that insurance on a dwelling costs on the order of $300 for each $100,000 of market value or on the order of $750 per year for a $250,000 house.
Other Monthly Debt
Most folks have a few non home related debts such as student loans or car payments that also get factored into the affordability equation.
Affordability Examples
Taking into account these factors we have calculated the affordability for folks who work in town. Using some basic assumptions we can see that many folks who work in Sandwich cannot afford to purchase a home here. i.e. what can you get in town for between $80k to $120k. You can try the calculator online for yourself using other assumptions.
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