Three South Florida counties, Miam-Dade, Martin, and Palm Beach, have made it into the top 10 in the state when it comes to the most expensive places to finance a home, according to a recent study conducted by SmartAsset. The study utilized the median home values and estimated interest rates for a 30-year fixed-rate mortgage to calculate the overall cost of financing a home.
In the rankings, Miam-Dade County secured the seventh spot, while Martin County claimed the eighth spot, with Palm Beach County following closely in tenth place. However, the county grabbing the number one spot for the most expensive place to finance a home in the state is Monroe County, encompassing Florida’s Keys, which had a median home price of a staggering $957,819.
Out of the 67 counties in Florida, Broward County secured the 13th position, with St. Lucie County coming right after in 14th place. Indian River County ranked 19th, while Okeechobee County landed in the 52nd position.
To provide a more detailed overview, the study further presented a comprehensive table displaying the different rankings of counties in terms of median home value, interest rate estimates, total interest, total cost, and a most expensive index. For instance, Monroe County, FL, took the lead with a median home value of $957,819, an interest rate estimate of 6.64%, total interest of $1,002,777, total cost of $1,960,596, and a most expensive index of 37.68.
In their report, SmartAsset adjusted the Freddie Mac national average interest rate based on the respective county’s average credit score and debt-to-income ratio. Additionally, the study determined that the overall loan payments were calculated on a 30-year fixed-rate mortgage with a 20% down payment, while the average interest rate for the loans hovered around 7%.
The implications of these findings are not to be understated. As SmartAsset highlights in their news release, the cost of buying a home extends far beyond the closing price. The interest rates borrowers secure will significantly impact the final cost of their purchase.
With the high prices and financing costs revealed by this study, potential homebuyers in South Florida will need to carefully consider their options and assess the long-term financial implications before committing to a mortgage. As the real estate market continues to evolve, both buyers and sellers will be closely monitoring these trends to make informed decisions in the competitive housing market.