If you’re thinking about moving to Lake Elsinore but you’re not sure if you can afford the monthly payment on a home here, you’re in the right place because I’m going to break it down for you in this video.
Any questions? Reach out to me directly by email at Kyle@SoldByKyleWinn.com or by call or text at 951-852-9980.
Hey everyone, it’s your friend Kyle Winn. If you’ve never seen any of my videos I help people just like you buy and sell homes in places like Canyon Lake, Lake Elsinore, and Menifee, and here in early 2023 I’m releasing a 3 part “Cost of Living” video series for these 3 cities. This video is number 3 of 3, so I’m going to break down the monthly cost of owning a home in Lake Elsinore if you buy in 2023.
Over the last few months the value of homes sold in Lake Elsinore ranged from just over $200,000 for a 1 bedroom home up to well over $800,000 for over 4000 square feet. If we look at all the residential sales recently the average sale price is about $525,000, which would get you 4 bedrooms, 3 bathrooms and almost 2000 square feet on average.
So what do the monthly payments look like on a home in Lake Elsinore that you buy for $525,000? Well let’s start by assuming that you’ve saved up some money to make a 20% down payment, which would be $105,000. So you apply that as your down payment and you obtain a 30 year mortgage for $420,000, and if we assume your interest rate is 6%, then your monthly payment for principal and interest will be about $2520.
Now keep in mind that you do not have to make a 20% down payment! The type of loan you obtain, your interest rate, your down payment, and other variables may depend on your income, profession, credit score, and more. This is why it is critical that you speak with a lender before you start looking at homes. They’ll find the best loan program for your budget and they’ll help you determine a good down payment for your scenario.
Then of course you’ll have homeowner’s insurance as well. Now for this example we’re talking about an average house in Lake Elsinore, and keep in mind that your insurance premiums will vary depending on the size of the house, age of the house, its location, and more. For this example let’s make it simple and say an insurance policy might cost you $100 per month.
The property tax rates in the area vary primarily depending on the age of the development since newer developments tend to have special assessment. Homes that are over 20 or 30 years old tend to have a property tax rate just a hair over 1% while it can be 1.9% brand new homes. For this example let’s say it’s not a brand new home, but there are still special assessments and the net property tax rate is 1.6%, which puts the annual property taxes at about $8300, so we’ll call that $690 per month.
The last major consideration for your monthly housing cost in Menifee is your homeowners association dues. Many of the homes in this average price point that we’re talking about are within a homeowners association, which tends to be around $130 or so for many of these communities.
So let’s add up the total monthly housing cost of a $525,000 house with 20% down, so with a mortgage of $420,000 and a 6% interest rate.
$2520 per month for the mortgage.
$100 per month for homeowner’s insurance
$690 per month for property taxes
$130 per month for HOA dues
Therefore, your monthly cost of owning this house will be $3440 per month.
Please remember that this is just an example and I guarantee you that your individual scenario will be different, but this should give you an idea of what the monthly payments could look like for a house in Lake Elsinore here at the beginning of 2023. Remember your monthly payment will differ from this example depending on things like the purchase price, down payment, interest rate, special assessments, and HOA dues, but if you are thinking about making a move I would encourage you to talk to a lender right away. They will help you analyze your finances and establish a comfortable home search budget for you. Well I hope you found this video helpful, but if you have any questions drop them in the comments below, or just call, text or email me any time, and I’ll see you in the next video!