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February 1, 2022
“How much house can I afford?” One of the most common questions homebuyers have as they pursue their journeys to homeownership. Although the answer to this question that lenders receive from homebuyers daily depends on the borrower’s unique finances, credit history, and other qualifying criteria, how much house a buyer can afford is also highly dependent on current mortgage rates.
Mortgage rates factor into a homebuyer’s affordability when it comes to purchasing a home. The lower the interest rate, the lower the monthly payment. With a lower monthly interest payment, homebuyers can typically afford “more house” because they’re required to pay less in interest every month, compared to a higher rate.
According to Chief Operation Officer Matthew Graham of Mortgage News Daily, “[Rates] continue to operate in very low territory in historical terms.” What this means is, now is a great time to pursue homeownership and a smart time to connect with a lender about applying for a mortgage – the first step towards building your home!
When laying down roots, beginning the home building process, and ultimately constructing your perfect home, it’s important to consider the cost of labor and geographic location. According to study results published on Yahoo, not all states are equal when it comes to getting the most bang for your buck. Rounded up below is a list of the top five least expensive states to build a home this year, based on the study.
Boomer and Sooner fans are in luck when it comes to the study’s results revealing Oklahoma as the cheapest state to build a home. Whether you’re a diehard fan ready to make the move closer to cheer on the University of Oklahoma or want to make one of the flyover states home, you can do so knowing you can build and get the most bang for your buck.
The estimated cost to build a house is $145,912 and the estimated labor cost is $14.19/hour.
Has HGTV’s hit show, Home Town, had you fantasizing about building your home in a quaint town like Laurel, Mississippi? If so, now may be a great time to pursue your dreams. This state’s three largest cities have the lowest average building cost.
The estimated cost to build a house is $155,215 and the estimated labor cost Is $13.92/hour.
While Nebraska is more commonly known for its history, natural attractions, and being the origin site of the Reuben sandwich, it also is among the cheapest states to build a home in 2021.
The estimated cost to build a house is $152,263 and the estimated labor cost Is $14.50/hour.
The Natural State, Arkansas, is home to national and state parks, rivers, and caverns. If building a home close to an abundance of scenic exploration opportunities sounds ideal to you, then rest assured knowing if you choose to build in Arkansas, it has the lowest construction labor costs, based on the study.
The estimated cost to build a house is $162,662 and the estimated labor cost is $12.38/hour.
If you’ve ever wondered what it’d be like to live near the Great Lakes, Michigan may be calling your name.
The estimated cost to build a house is $150,310 and the estimated labor cost is $18.31/hour.
The study results were based on the following:
Whether you’re interested in building a home now or plan to build later in life, researching the costs involved with home building can help you make informed decisions every step of the way. Additionally, regardless of various study results, know that no matter what state you live in, building a home is achievable.
To learn more about financing options that make the most sense for you and your goals, connect with one of our loan officers.
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