me_irl

hideshow 10 child comments

parent

[–] dparticiple@sh.itjust.works 19 points 5 months ago (9 children)

My math says that the monthly principal+interest on that house is more like $4,300 a month, assuming:

Purchase price: $850,000
Down payment (20%): $170,000
Loan amount: $680,000
Interest rate: 6.5% fixed
Term: 30 years (360 months)

Not insignificant, but not wildly off like the infographic.

hideshow 9 child comments

parent

[–] thallamabond@lemmy.world 11 points 5 months ago (6 children)

You gotta roll home owners insurance in there, and taxes.

hideshow 6 child comments

parent

[–] dparticiple@sh.itjust.works 12 points 5 months ago (5 children)

That's realistic, but the infographic doesn't include tax and insurance. Working backwards, it has:

Home price: $600,000
Down payment (20%): $120,000
Loan amount: $480,000
Interest rate: 3.0% fixed
Term: 30 years (360 months)

The monthly principal-and-interest payment is exactly as the post said, $2024 / month.

Has insurance gone up? Absolutely? Have property taxes generally rise? They have. But this is an honest like-for-like comparison.

hideshow 5 child comments

parent

[–] Blum0108@lemmy.world 8 points 5 months ago (2 children)

Who has 120k lying around for a down payment?

hideshow 2 child comments

parent

[–] EndlessNightmare@reddthat.com 1 point 5 months ago

That's "only" (checks average income in the U.S.) 2 years of average income in the U.S.

Oh, and that's $120K after tax

parent

[–] duckwingthegoose@lemmy.world 1 point 5 months ago

Someone selling a home they already own. I know thats not helpful to most, but thats the only realistic way to have 120k sitting around

parent

[–] ZombiFrancis@sh.itjust.works 6 points 5 months ago (1 child)

$2024 > $4300 is more than double, while also assuming saving an extra $50,000 in downpayment while that cost increased.

Although the down payment has less impact. But nonetheless, that lower payment boosts the loan to about $4600.

Wages aren't doubling.

parent

hideshow 1 child comment

[–] dparticiple@sh.itjust.works 3 points 5 months ago

Oh, I agree with you, and concur with the spirit of the infographic. I just like accurate calculations!

parent

[–] BCsven@lemmy.ca 6 points 5 months ago (1 child)

We don't do 30 years here anymore. Its 25, and most people can't do the 20% down, its 5% for first time homebuyer

parent

hideshow 1 child comment

[–] EndlessNightmare@reddthat.com 2 points 5 months ago*

Fun fact: the increase in monthly payment going from a 30-year down to a 20-year mortgage is less than 20-year to 15-year.

This is also why the talk about longer mortgages should be a non-starter.