Places to buy a retirement home for a good deal #5
For Americans looking to buy retirement property, the historic real estate crash has created all sorts of opportunities. Home prices in 20 major metropolitan areas have declined roughly 28 percent from their 2006 peaks. Meanwhile, government efforts to ramp up demand for homes have significantly reduced mortgage costs for borrowers. Thirty-year fixed mortgage rates stood at 4.37 percent for the week ending September 16, only slightly above the 39-year lows reached two weeks earlier. Taken together, lower home prices and cheap mortgage rates have made home buying much more affordable than just a few years ago. And given that real estate values in many traditional retirement spots--like Florida and Arizona--have fallen even harder than the national average, Americans who are ready to embark on the second half of their lives are in a particularly favorable position. To that end, U.S. News has compiled a list of 10 places where retirement home buyers can purchase property for less than $600 a month.
In putting together our list, we obtained median home price data from the National Association of Realtors for 159 metropolitan statistical areas throughout the country. After subtracting a 20 percent down payment, we plugged the remaining figure into a mortgage calculator using a 4.37 percent rate on a 30-year fixed mortgage. We then looked for places that would make desirable retirement destinations and whose monthly mortgage payments totaled less than $600. Please note that these monthly payments only reflect costs for mortgage principal and interest, which will represent the majority of a homeowner's monthly housing expenses. It does not, however, take into account expenses for taxes, insurance, and utilities, which can vary significantly from one place to another.
5. Boise, Idaho: With a population of 206,000, Boise, Idaho is a wonderful retirement spot for art lovers and outdoor enthusiasts alike. Residents can explore the 25-mile Greenbelt river path in the fall and head to the nearby mountains for skiing come winter. Boise State University offers continuing education programs and plenty of sporting events. Meanwhile, the city has a full menu of museums, theater groups, and other performing arts offerings. The median home price in the Boise area was $140,000 in the second quarter of 2010, a decline of roughly 13 percent from a year earlier. Buyers who put 20 percent down--or $28,000--on a median-priced home in the Boise area will have monthly payments of around $559.
For Americans looking to buy retirement property, the historic real estate crash has created all sorts of opportunities. Home prices in 20 major metropolitan areas have declined roughly 28 percent from their 2006 peaks. Meanwhile, government efforts to ramp up demand for homes have significantly reduced mortgage costs for borrowers. Thirty-year fixed mortgage rates stood at 4.37 percent for the week ending September 16, only slightly above the 39-year lows reached two weeks earlier. Taken together, lower home prices and cheap mortgage rates have made home buying much more affordable than just a few years ago. And given that real estate values in many traditional retirement spots--like Florida and Arizona--have fallen even harder than the national average, Americans who are ready to embark on the second half of their lives are in a particularly favorable position. To that end, U.S. News has compiled a list of 10 places where retirement home buyers can purchase property for less than $600 a month.
In putting together our list, we obtained median home price data from the National Association of Realtors for 159 metropolitan statistical areas throughout the country. After subtracting a 20 percent down payment, we plugged the remaining figure into a mortgage calculator using a 4.37 percent rate on a 30-year fixed mortgage. We then looked for places that would make desirable retirement destinations and whose monthly mortgage payments totaled less than $600. Please note that these monthly payments only reflect costs for mortgage principal and interest, which will represent the majority of a homeowner's monthly housing expenses. It does not, however, take into account expenses for taxes, insurance, and utilities, which can vary significantly from one place to another.
5. Boise, Idaho: With a population of 206,000, Boise, Idaho is a wonderful retirement spot for art lovers and outdoor enthusiasts alike. Residents can explore the 25-mile Greenbelt river path in the fall and head to the nearby mountains for skiing come winter. Boise State University offers continuing education programs and plenty of sporting events. Meanwhile, the city has a full menu of museums, theater groups, and other performing arts offerings. The median home price in the Boise area was $140,000 in the second quarter of 2010, a decline of roughly 13 percent from a year earlier. Buyers who put 20 percent down--or $28,000--on a median-priced home in the Boise area will have monthly payments of around $559.