Buyers need a six-figure income to afford a ‘typical’ home, report finds. Here’s how to reduce the cost

Prospective home buyers face a difficult market.

The median monthly mortgage payment for a typical home in the U.S. was $2,682 in October.

The report found that the yearly income needed to cover the median mortgage payment was more than double what it was a year ago.

The primary reason is rising mortgage interest rates. Mortgage rates have more than doubled since the beginning of the year.

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Despite the sharp drop reported this week, the average interest rate for a 30-year fixed-rate mortgage of $647,200 or less was still under 4%, compared to under 3% at the beginning of the year.

The average sales price is higher than it was a year ago.

Home prices have gone up substantially, mortgage rates have more than doubled, and that's just crushing affordability.

A higher cost of living is cutting into Americans' budgets.

Experts say there are a few ways to reduce your mortgage payment.

A higher down payment means a lower mortgage and lower monthly payments. Getting your mortgage cost under control can be achieved by more down in this environment.

A fixed-rate mortgage has a higher initial interest rate than an ARM. At that time, the rate adjusts to the market rate.

As long as you understand the risks, you can consider an ARM.

She said that if you are planning to stay in the home for several years, there is a risk that you won't be able to get a fixed rate mortgage. It will adjust higher in a rising rate environment.

If your income goes down or your home value goes down, your eligibility can change. It is a higher risk for a first-time buyer.

Home values and demand can vary by location. He said being patient and being opportunist is a good strategy.