Can You Afford a Home in Chicago?
By Sally Deneen
Can you afford a home in Chicago? The mortgage website HSH.com answers yes – if you have an after-tax income of $32,388.90, making the city the 11th most affordable out of 25 cities rated.
Here's how the website says it made that calculation: It assumes that you purchase a $187,100 home and a 4.47 percent mortgage interest rate to come up with a monthly mortgage payment of $755.74. That covers only the interest and principal, not those real-world extras such as taxes, insurance, down payment and expenses to live in the home.
Cleveland ranks easiest on the wallet in these rankings. You'd need an after-tax income of $19,435 to afford a low monthly mortgage payment – just $453.49. That's for a home that costs $112,800 in C