• dparticiple@sh.itjust.works
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    10 days ago

    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.

      • dparticiple@sh.itjust.works
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        10 days ago

        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.

          • duckwingthegoose@lemmy.world
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            10 days 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

        • ZombiFrancis@sh.itjust.works
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          10 days ago

          $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.

    • BCsven@lemmy.ca
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      10 days ago

      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