you are viewing a single comment's thread
view the rest of the comments
[–] 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.

  • source
  • parent
  • hideshow 9 child comments
  • [–] 11 points 5 months ago (6 children)

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

  • source
  • parent
  • hideshow 6 child comments
  • [–] 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.

  • source
  • parent
  • hideshow 5 child comments
  • [–] 8 points 5 months ago (2 children)

    Who has 120k lying around for a down payment?

  • source
  • parent
  • hideshow 2 child comments
  • [–] 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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 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

  • source
  • parent
  • hideshow 1 child comment