Data: Zillow. Note: Calculations assume typical increases in home values, 3% closing costs paid at purchase and 1% home maintenance fees, 6% closing costs, and 6% agent fees paid at sale. Chart: Erin Davis/Axios Visuals
As mortgage rates get closer to 8%, it will take a lot longer for new homeowners to break even on their purchase, per Zillow data exclusively shared with Axios.
Driving the news: In the Portland metro area it could take more than a decade to break even on a typical house at current rates with a 20% down payment.
That's how long you have to stay in your house before you can sell to make a profit and recoup expenses like mortgage interest, fees, and maintenance.
For Portlanders who put down 3%, the time needed to break even is estimated at 12.5 years.
Why it matters: That's far longer than the traditional advice that you will recover purchase costs if you stay in your home for at least five years.
How it works: Zillow used typical price increases for each market to forecast the value of a median home and compare it to equity based on down payments of 3% to 20%.