Rising Star
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Who let the dogs out??????
Pro
your best quote
Pro
Rising Star
Enthusiast
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Enthusiast
Football season is fun. 🏈
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Enthusiast
Chief
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Enthusiast
You could also pay 100% in cash now and only pay $485k (plus fees). That’s roughly half a million in instant savings.
Follow me for more financial hacks.
Rising Star
Following!!
Enthusiast
OP, everyone here missing the point...yes yes, life is a scam.
Chief
FA1 both. We have Cannabis store in every neighborhood like liquor stores.
Chief
Do you really not understand how compound interest works?
Rising Star
I don't actually need it explained to me, you guys. I get it.
The amount of condescending comments on this thread is sad.
Where is the house? I’ll buy it cash and you can rent from me.
Rising Star
How much of the $3k is being applied to property tax and insurance? What’s the interest rate?
Enthusiast
Thank you, god. The interest alone is obviously important. But I pay $1000 a month in property taxes. That has nothing to do with the bank.
Google the "Time Value of Money"... You can't simply multiply your monthly payment by 360 months (30 years) to get your total payment, because the value of money changes over time.
Banks factor this into their mortgages.
Pro
Yet if you invest in the market you roughly expect your money to double in 10 years.
Yet if you leave your money in a bank account you roughly expect to lose half the value of your money in 35 years to inflation (at around a ~2% inflation rate)
Yep mortgage payments tally.
Rising Star
stay in HR
Enthusiast
mean - someone’s jelly OP buying a house
Imagine a time when my parents bought a house and the interest rate on the loan was 14.5% (true)
Not to mention you basically proved our point that things are hard these days with your food bank and spaghetti os example.
Critical thinking is not KPMG2s biggest strength it seems!
This is why myself and my colleagues have accepted homeownership will not be on our horizons before 35.
Congratulations!!
Chief
Tell me no one told you about NPV without telling me no one told you about NPV
Chief
taking inflation into account it's probably an ok deal for both u and the bank
Enthusiast
Your house could also be worth $2m in 30 years…
Just pay additional to your principal each month. A little goes a long way. I paid an extra $500 a month for maybe 6 months and saved $20k on interest. Things they should teach ppl when purchasing a home. Dont max out the mortgage you qual for and leave room for addtl payments.
I think the rule of thumb is that if you make 13 payments a year (instead of 12), with the 13th going purely to principal, it will cut 5 years off your mortgage.
Enthusiast
Better off renting at that price and investing your $.
Enthusiast
Just saying I’m in contract and I feel this.. 🥴
These people definitely missed your point. It is all scam. Yes back in the day people bought homes for higher interest rates but also the homes were not as expensive as they are today. Depending on where OP is that $485k home is probably a three bedroom and really should be going for $250k to start. I feel you OP… pure scammery all around!
That’s a clear outcome of remote work - as people spread through the country costs can go up fast.
In most HCOL areas there aren’t homes at $500k and haven’t been houses for $200k for 40 years.
As an example my parents bought their 2000 square foot house in a nice suburb of Boston for 285k…. In 1981. I point this out because people in many major metros have been dealing with $500k as a basic entry point for 20+ years. It just is what it is and you deal with it or move.
Rising Star
Or assuming about a 6% interest rate and financing the full $485k it works out to about that price
Here’s the math:
Are you not putting any down payment down, at least 20%
cost money to borrow money!!! duh
Think of it like this, if you invested that 485K, you’d have over 2M at ONLY a 5% annual gain.
So if you put 485K in your investment account and pull out 3K a month, you would probably be able to pay off at least 80% of the mortgage after the account reaches $0