By Molly Schiff | CNBC
There are many factors leading to the increase in housing costs across the U.S., including rising interest rates and even remote work. And the first year of homeownership in particular can be especially costly between a down payment, closing costs, mortgage payments, homeowners insurance and property taxes.
New data from SmartAsset reveals how expensive the first year of homeownership typically is in major U.S. cities. Unsurprisingly, those looking to own a home in a large city start at a disadvantage due to the high home values in these areas.
SmartAsset looked at data for the 20 largest cities in the U.S., specifically considering two categories: upfront costs and annual recurring costs.
For upfront costs, SmartAsset assumed a 20% down payment on a median-priced home, using data from Zillow, as well as average closing costs, excluding escrow and any pre-paid expenses. Annual recurring costs include mortgage payments, average property tax and homeowners insurance. The data also assumes a 30-year fixed rate mortgage with a 6% interest rate.
