squeevey t1_irg1qbs wrote on October 7, 2022 at 8:38 PM

Reply to comment by padizzledonk in [OC] House price you can afford by paying 1000/month for 30 years vs. interest rate by hmiamid

Those costs don't compound.

padizzledonk t1_irg8594 wrote on October 7, 2022 at 9:28 PM

But it's part of the monthly cost of buying a home.

If you can afford a $1000 a month payment you really can't afford a $1000 a month mortage payment because your monthly payment is more Like 1600 a month figuring taxes and insurance(in my case....well, mine is more like 1200 but whatever)

I bring this up because it effects the total cost of the home you can actually afford

6700 is cheap in NJ, I have friends that pay 2x and 3x that....their tax bill alone is about a 1000-1500 a month

It just sets the entry bar lower

I get what you are trying to illustrate though- that the interest rate effects the overall cost far more than people realize....well, people who haven't lived under anything but the unsustainable and unrealistic interest rates of the last 20 or so years

thelandsman55 t1_irg9bf8 wrote on October 7, 2022 at 9:38 PM

I feel like this is a little misleading because property taxes also reduce the value of homes all else being equal, so the costs are more likely to be passed on via reduced sale price than increased monthly payments.