• dparticiple@sh.itjust.works
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      4 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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          4 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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              3 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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            4 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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        4 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

        • EndlessNightmare@reddthat.com
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          3 days 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.