Jakelshark t1_j6y6fun wrote
Reply to comment by FITM-K in So, naive question but, how do we go about politically motivating housing costs? by [deleted]
The rent v mortgage thing is understandable in that the bank is going to most likely require insurance and taxes to be paid in escrow. So the mortgage might be $1,500, but the bank needs $2,300 monthly or whatever because they don't trust most people to keep up with insurance and taxes on their own. And that's without getting into long term maintenance costs
Antnee83 t1_j6y7hlc wrote
> So the mortgage might be $1,500, but the bank needs $2,300 monthly or whatever because they don't trust most people to keep up with insurance and taxes on their own.
Guys.
Both of these things are part of a mortgage payment in almost all cases. Property taxes are paid on your behalf by the lender, and is included as part of your mortgage payment. You're almost always required to hold homeowners insurance (and not just the minimum policy) while you have a loan.
Jakelshark t1_j6y8dbl wrote
I know how it works. I have owned multiple houses (not at the same time, so put down your pitchforks)
I'm just trying to draw a distinction between the home loan part (what you get preapproved to spend) and the rest of the fees you're expected to pay monthly. The home loan part is traditionally a fixed payment, whereas the taxes/insurance can vary over time.
My last home was 860/month for the mortgage to pay principle and interest. Over 6 years the taxes/insurance went from about 300 to 400 a month.
FITM-K t1_j6ya7wg wrote
By mortgage I meant the whole payment to the bank (i.e., including taxes and insurance). My full monthly payment, taxes and insurance included, is over $1,000 less than my house would cost to rent.
FightTomorrow t1_j6yi1px wrote
That’s literally what it always means. It’s never “my mortgage is 1500… not including mortgage insurance, property taxes…”. Even Zillow includes it in their estimate.
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