Hey everyone, it’s your friend Kyle Winn. If you’re thinking about moving to Menifee but you’re not sure how much it will really cost to live 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.
Over the past couple years we’ve seen home values jump up quite a bit, and now with higher interest rates the cost of owning a home has increased. Then when you factor in the increased cost of goods due to inflation people are becoming more strict with their budgets. So today I’m going to break down how much it costs to own a home in Menifee, and I’m going to give you some tips on how to reduce your monthly housing cost.
Over the last few months the value of homes sold in Menifee ranged from about $250,000 up to almost $1.3 million dollars. I know that’s a wide range so we’ll narrow it down to a typical suburban home, so nothing with acreage and not in a senior community, and with that we find that the average sale price over the last few months is about $575,000, which would get you 4 bedrooms, 3 bathrooms and almost 2400 square feet..
So what does it cost to own a home in Menifee that you buy for $575,000?
Well let’s start by assuming that you’ve saved up some money to make a 20% down payment, which would be $115,000. So you apply that as your down payment and you obtain a 30 year mortgage for $460,000, and if we assume your interest rate is 6%, then your monthly payment for principal and interest will be about $2760.
Now keep in mind the type of loan you obtain, your interest rate, and other variables may depend on your income, profession, down payment and credit score, and more. One way you can really save on your mortgage and out of pocket costs is to look at a brand new home. I know many of you think there’s no way you can buy a brand new home, but you’d be surprised. Reach out to me and I’ll help you get started.
Then of course you’ll have homeowner’s insurance as well. Now for this example we’re talking about an average house in Menifee, and keep in mind that many homes in Menifee are relatively new, so let’s say an insurance policy might cost you $100 per month.
The property tax rates in the area tend to range from about 1.2% for homes that are 20 to 30 years old or older, and as high as about 1.9% for brand new homes with their special assessments. For this example let’s say this is a newer home with a property tax rate of 1.8%, so the property taxes might be a little over $10,000 per year, so we’ll call that $860 per month.
The last major consideration for your monthly housing cost in Menifee is your homeowners association dues. These can vary quite a bit depending on the community you move into, which can be zero or maybe $150 per month or more. For this example we’ll assume we’re somewhere in the middle there at $70 per month.
So let’s add up the total monthly housing cost of a $575,000 house with 20% down, so with a mortgage of $460,000 and a 6% interest rate.
$2760 per month for the mortgage.
$100 per month for homeowner’s insurance
$860 per month for property taxes
$70 per month for HOA dues
Therefore, your monthly cost of owning this house will be $3790 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 it costs to own a house in Menifee here at the beginning of 2023. Remember this example was for a $575,000 house with 20% down and a 6% interest rate, but maybe your budget is $450,000. Or maybe your budget is $1.5 million. Regardless, your monthly payment will differ from this example, but if you are thinking about making a move I would encourage you to talk to a lender right away. Especially since they have many ways of helping you combat the higher interest rates we’ve seen lately, and they may even be able to help you with your down payment. 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.