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Kevin McCallister and his family lived in a beautiful but expensive home. Find out how much you’d need to make to afford the iconic “Home Alone” movie house.
Image source: Getty Images
If you were a child or teen during the ’90s, you likely have at least a few Home Alone movie moments memorized by heart, like Catherine O’Hara’s “Kevin!!” scene. The first movie in the iconic series was released in November 1990, and the home used for filming still exists today.
Located in the suburbs of Chicago, the famous home last sold in 2012 for $1.585 million. While the house is not currently for sale, it’s estimated to be worth even more over a decade later. Discover how much you’d need to make to afford the real-life Home Alone house.
The Home Alone house is estimated to be worth $2 million
As you might imagine, you’d need a good chunk of cash in your checking account to afford the real-life Home Alone house. Of course, you likely wouldn’t pay for the home entirely in cash. Instead, you’d probably want to take out a mortgage to cover some of the cost. Situated in Winnetka, about 20 miles from Chicago, the home looks like you remember it from the movies.
The property is over 100 years old, has more than 4,200 sq. ft., and sits on a half-acre lot. Since it’s spacious, it’s an ideal home to raise a family. Of course, it’s also a perfect place for “eating junk and watching rubbish” if you’re an 8-year-old child accidentally left at home.
How much does a beautiful home like this cost? A home appraisal is the best way to gauge a home’s value. However, property listing websites give estimated home values. At the time of writing, Zilliow estimates that the Home Alone house is valued at a little over $2 million.
What a mortgage payment might look like for the McCallisters
The McCallister family likely mortgaged their home. Many home buyers finance their home purchase using a mortgage. It’s recommended that home buyers make a 20% down payment when buying a home to avoid private mortgage insurance (PMI) fees.
It’s important to remember that mortgage interest rates are constantly in flux. Factors like your income, total outstanding debt, and credit score determine what rate you’ll qualify for when applying for a home loan. The Federal Reserve Bank of St. Louis outlines the average 30-year fixed-rate mortgage rate over the last 30 years. At the time of writing, that rate is 6.67%.
We used our mortgage calculator to estimate the monthly mortgage cost using a 6.67% mortgage rate to determine an estimated monthly mortgage payment. If you purchased the Home Alone house for $2 million and made a 20% down payment, you’d be putting down $400,000 and would need to mortgage the remaining $1.6 million.
The estimated monthly payments for a home like this are around $12,837. That total includes estimated property taxes and home insurance expenses. Before buying a home, don’t forget to budget for other expenses like utilities and routine home maintenance costs. By doing this, you’ll be more prepared for the actual monthly cost of owning a home.
You can afford a McCallister-level home on a $650,000 salary
Experts recommend spending less than 28% of your gross monthly income on housing. For this article, we determined an income that would keep the monthly mortgage payment under 25% to account for other home costs like utilities, home maintenance, and everyday expenses. After all, you’d want to be able to afford a comfortable life while living it up like Kevin McCallister.
With a monthly mortgage payment of around $12,837, you could comfortably afford the McCallisters’ home on a $650,000 annual salary. Your monthly mortgage payments would be a little under 24% of your gross income — and you’d have plenty of money left over to install a high-quality home security system to keep the pesky duo known as the Wet Bandits away!
For anyone considering buying a $2 million home, ensure you have a sizable emergency fund saved up well before closing. Having extra money stashed in a savings account is an excellent way to prepare for unexpected costs that may come your way as a new homeowner.
Now you know what you’d need to make to live in a home like the McCallister family. If you’re considering buying a house, check out our list of the best mortgage lenders to learn more.
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