10 bargain cities where $1,000 monthly mortgage payment is possible

by Candyd Mendoza15 May 2019

Despite a steady increase in mortgage prices, real estate data provider realtor.com found that there are still markets in the US where almost half of borrowers have mortgage payments of $1,000 a month or less on 30-year fixed-rate loans.

However, the company said that these places would not be found on “metros with thriving communities and nightlife” but “in areas where there have been steep job losses, incomes are lower, and there are more sellers than buyers.”

"Right now, the Rust Belt area and parts of the South are where home buyers will get the biggest bang for their buck," said Todd Teta, chief product officer at ATTOM Data Solutions. "Stay away from the West Coast, where home prices aren't showing too many signs of slowing down."

Realtor.com created a hypothetical 30-year FRM loan for each of the 200 biggest metropolitan areas to rank the cities with a bargain mortgage.

“These loans included 10% down payments, 4.55% mortgage interest rates, 0.5% of the value of the home in private mortgage insurance payments, and a $40 home insurance payment for each $100,000 in home value,” realtor.com wrote. “Additionally, we factored in 1% of the home's value going toward home maintenance annually, the industry standard.”

Prospective home buyers could look for homes with a price point of $162,000 or less to get a mortgage under $1,000, excluding property taxes and down payments.

So here are the cities where monthly homeownership costs are the lowest:

  1. Youngstown, Ohio (With a median list price of $121,800, and where the share of homes with monthly mortgage of $1,000 or less is 63.7%)
  2. Peoria, Ill. ($136,500 / 61.2%)
  3. Binghamton, N.Y. ($130,000 / 61.1%)
  4. Huntington, W. Va. ($143,300 / 58.2%)
  5. Davenport, Iowa ($145,100 / 56.2%)
  6. Lynchburg, Va. ($150,000 / 54.7%)
  7. Erie, Pa. ($155,100 / 52.3%)
  8. Fort Smith, Ariz. ($160,400 / 50.4%)
  9. Mobile, Ala. ($179,800 / 45.4%)
  10. Macon, Ga. ($173,800 / 45.2%)