Have you been earning more in recent times than you did in the past? If so, your good fortune reflects a regional trend as described by the US Department of Commerce’s Bureau of Economic Analysis (BEA). According to the data, between 2017 and 2019, there was a 5.7% increase in income per capita in the San Diego metro area. This can be compared with a 4.7% increase throughout the country.
Specifically, this data is for what is known as “real personal income.” That number incorporates not just how much you earn from your job, but also money from investments, interest and the government.
Not only did the increase in San Diego surpass that of the country, but it also was marginally higher than the 5.4% increase in real personal income in Los Angeles. As to the Riverside-San Bernardino-Ontario metro area, the increase there was just 4.3%.
With incomes on the rise, the housing market in the San Diego metro area and throughout the state of California is booming. And if you have had a jump in your income over the past few years, that positions you to potentially afford more home than you might have a few years ago.
Even if you are not currently looking at the possibility of purchasing a home, you might want to consider refinancing. Despite a recent slight increase in mortgage rates, rates are still significantly lower than they were a year ago currently.
With a higher income, you may have a better debt-to-income (DTI) ratio, which would give you a more competitive borrower profile. This could help you qualify for lower interest rates and better all-around terms if you refinance.
It could also give you the opportunity to shorten your mortgage term if you want to pay off your loan more quickly. Making higher monthly payments might be within your means now. And the more rapidly you can pay off your mortgage, the less interest you will pay over its lifetime.
If you want to take advantage of today’s competitive mortgage rates to purchase or refinance, please give me a call today at (619) 857-7191. During our consultation, I can let you know how an increase in your income could impact your eligibility for an affordable home loan in San Diego.