So you’re thinking about buying a home in Murfreesboro, TN and do not know where to start. Buying a home is a huge, life-changing commitment that requires proper planning and a full understanding of the amount you can spend on a home.
By ensuring you purchase a home that is within your budget, you can effortlessly make each mortgage payment on time without having to worry about the financial consequences that purchasing a home over budget often brings to homeowners.
The following is everything to know about how much money is needed to purchase a home in Murfreesboro, TN.
Home Costs in Murfreesboro, TN
The average home cost in Murfreesboro, TN is $238,800, which is up 8.6 percent from last year at this time.
Although the home costs in Murfreesboro have risen in the past year, now is the time to purchase a home as the median home value in Murfreesboro - along with the mortgage rate - is expected to rise as the year progresses.
With that said, you can still find a great deal on your dream home by searching in the proper manner and consulting with a real estate agent for your home buying needs.
Down Payment and Closing Costs
There are various different factors that affect the overall cost of a home, including the mortgage rate, down payment and closing costs.
It is essential to plan for additional payments - such as the appraisal, inspection and title fees - along with the cost of the mortgage when buying a home. Otherwise, you risk becoming overwhelmed with high, unexpected costs upon closing.
Ideally, it is best to budget at least 5 percent for the down payment, in addition to considering the various closing costs, moving costs and furnishing.
Determine How Much You Can Afford
In order to determine how much you can afford to spend on a home in Murfreesboro, TN, you need to calculate what the expected monthly mortgage payment will be for a particular home you are considering, and then weigh the cost against your monthly income.
You should aim to stay within 28 percent of your monthly income, which should also include the costs of home insurance, property taxes and association fees.
For example, the average cost of a home in Murfreesboro is $238,800. At the average 4.5 percent interest rate over 30 years, you are likely to spend $1,210 on your mortgage each month, which means a monthly income of at least $5,000 is a safe estimate.
The Bank Rate Calculator is a great way to determine the exact amount you can comfortably spend on a mortgage.
Discuss Your Needs With a Realtor
If you are considering purchasing a home in the Murfreesboro, TN area, then consult with us and find out how we can help you find your dream home while remaining within a reasonable budget.
With the right advice and proper planning, you can live a comfortable life financially by purchasing a home that is right for you.
Annette Masterson is a licensed broker with EXIT Realty Bob Lamb & Associates in Murfreesboro, TN. She has developed one of the most successful real estate teams in Rutherford County, known as Masterson Network, that specializes in new home construction and residential listings and sales throughout Middle Tennessee. You can email Annette at mastersonnetwork@gmail.com or call her at 615-896-5656 (Office) or 615-533-1660 (Cell) for more information.