Mortgage rates mostly increased this week in Miami. Meanwhile, a resident in Miami needs to make substantially more than the median income to live comfortably, Miami New Times reports.
One financial rule of thumb says that a person spends 50% of after-tax income on necessities (such as food, rent, health care, utilities, transportation); another 30% on discretionary purchases; and the final 20% should be spent on savings. This is almost impossible to achieve in Miami, though.
According to an analysis from Go Banking Rates, a personal finance and commercial banking website, in order to adhere to that budget in Miami, a person would need to make $77,057 a year. That’s $46,199 more than the median income for the city, which is $30,858, according to New Miami Times.
No other city has as high a difference between the ideal salary number and the actual number, the Times notes.
This week's rates
The benchmark 30-year fixed-rate mortgage in Miami rose to 3.75% from 3.71%, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.11 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 3.83%.
The benchmark 30-year jumbo mortgage, for loans of $417,000 and up, increased to 3.75% from 3.67%. The benchmark 15-year fixed-rate mortgage remained at 2.88%. The benchmark 5/1 adjustable-rate mortgage grew to 3.17% from 3.08%.
Weekly mortgage survey
|Results from Bankrate's April 27 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Miami.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.75%||2.88%||3.17%||3.75%|
|Change from last week:||+0.04||N/C||+0.09||+0.08|
|Change from last week:||+$3.75||N/C||+$8.13||+$18.98|