At some point in their lives, most homeowners experience mortgage stress—which occurs when a homeowner’s monthly mortgage payments are more than 28% of their gross income. It’s common throughout the nation, whether or not you’re a first-time owner, but some cities actually record higher rates of mortgage stress than others.
According to finder.com, the top ten locations with the highest mortgage stress levels include:
- San Francisco, CA
- Los Angeles, CA
- Oakland, CA
- New York, NY
- Honolulu, HI
- San Jose, CA
- Long Beach, CA
- Miami, FL
- Boston, MA
- Anaheim, CA
But don’t worry! Even if you’re located in one of these cities, there are many ways to reduce your mortgage stress.
- Refinance to a lower interest rate: As discussed in our article “Federal Reserve Decides Against Raising Interest Rates This Month,” interest rates have not recently changed. Consider refinancing if these rates are lower than your current mortgage! This could save you hundreds on monthly payments.
- Create a budget: Make a spreadsheet detailing your monthly income and average family costs. This will allow you to determine how much money you can spend on fun activities and vacations! Keep in mind that budgeting your money is only effective when you stick to it every month.
- Dispute your property tax assessment: In many cases, years go by between your property tax assessments. This means you may be paying more than you should! This is also a great move if mistakes were found on your last assessment.
- Look for additional ways to save money: Mortgage stress can easily be avoided by saving money on other things. Check in with Forbes’ “101 Ways To Save Money” to determine what’s the best option for you.
For more information on how you can reduce mortgage stress, contact one of our mortgage specialists today.