Tenants who buy homes with a low mortgage rate but want to maximize their return will likely pay more than a typical homeowner, according to a new analysis from real estate firm McColly.
The firm has been tracking the mortgage interest rates at which homes can be bought for nearly 40 years, tracking properties with low or no mortgage rates that have sold in the last six months.
It found that the interest rates that can be earned on a typical home are about $110,000 lower than the median home prices.
If you have an interest rate of 6.5% and have an annual income of $50,000, the median house price can be $106,000.
But if the mortgage rate is 5%, that can cost you $120,000 of income.
A 10% mortgage rate means the mortgage payment can be even lower, at $70,000 for a two-bedroom.
As McColly points out, this is a very small mortgage rate for many homes in most communities.
McCarthy also found that home prices in the Bay Area and in New York City can be higher than in many areas of the country.
The median home price in the San Francisco Bay Area is about $200,000 higher than it is in most other metropolitan areas, according the firm.
And in cities such as Portland, Ore., the median price for a one-bedroom apartment is about 25% higher than the average.
The company also found homes in cities like Las Vegas, San Antonio, San Diego, and Phoenix are more affordable than those in the rest of the United States.
The average price of a home in Las Vegas is $2.2 million, according McColly, while the average price in San Antonio is $3.3 million.