How can the average American afford a down payment on house?

[ImGucci]

yeah im lookin at buying houses now, i have the down payment. the thing is though, at this point in my life im only buying a two family so i can rent out one half and have them pay at least half the mortgage

when you take out a mortgage for like 250k-300k, you're paying the bank like 200k in interest plus all the property tax you pay over that time

Exactly, thats why I would never buy a house with 0 down. With that interest rate, you are never getting out of debt. You will probably pay double the house cost just from the interest the bank is making off you... NOPE

The good thing with a house, is you can rent it out. Or if it gets equity while you bought it, you could always sell it and get the money you put back you put into it and profit off the equity.

 

[Standing on business]

Exactly, thats why I would never buy a house with 0 down. With that interest rate, you are never getting out of debt. You will probably pay double the house cost just from the interest the bank is making off you... NOPE

The good thing with a house, is you can rent it out. Or if it gets equity while you bought it, you could always sell it and get the money you put back you put into it and profit off the equity.

Even at a 4.5 interest rate you pay $207k in interest for a $250k home

 

[CrimsonTider]

Buying homes in 2018? That shyt stupid

Dumbest post possible

 

[Benefited]

This person? I thought we were talking in general.

There's plenty of people paying over $2k/month in rent that would struggle to save over $333/month for a down payment in my city and many major cities. But if they did it for 10 years, they'd have that cash for the downpayment and they've demonstrated over the last decade that they can afford the ensuing mortgage payments.

I don't see why the length of the lease matters as well. Of course the lease term isn't 10 years, but they either renew multiple times and/or change apartments during that time they're saving.

We are,and I don't think in general most people HAVE to pay 2K a month in rent. The lease matters just because I don't think somebody would pay rent for 10 years at that price if they wanted a house. But you are saying 2K is the bare bones minimum you can pay for a decent place to live. I will say if you do have to pay that much for an apartment or wherever you are living I doubt the rent will go down much when you get a house,utility bills go up,property taxes and other fees possibly have to be paid. If you would struggle to save 300$ I would still say you can't afford that house. Doesn't sound like you have the ability to be able to save up money for if worst case scenarios were to happen once you are in the home. You better have money saved for the down payment,plus you need to save another 5-10 years to have a nice cushion

This sounds more like a NY scenario or a city like that if you are paying 2K for rent. I will say I didn't know you could get nice houses like this for around that price in NY though,this crib only 215K. ?

Ashberry - Yates Farms Condominiums by Amedore Homes | Zillow


edit:wait,nevermind thats not one house

 

[D-NICE]

Even at a 4.5 interest rate you pay $207k in interest for a $250k home

Are you all planning on taking a 30 year or 15 year loan? I wouldn't worry about interest but that's just me and the situation I'm in down here. Renting was more expensive than owning so it made sense. Also if I had waited on my second house, I wouldn't have the equity in it I have now and probably wouldn't be able to afford it now (its gone up in value by $80k and my first house that I'm about to sell has gone up $40k).

 

[CrimsonTider]

yeah im lookin at buying houses now, i have the down payment. the thing is though, at this point in my life im only buying a two family so i can rent out one half and have them pay at least half the mortgage

when you take out a mortgage for like 250k-300k, you're paying the bank like 200k in interest plus all the property tax you pay over that time

Exactly, thats why I would never buy a house with 0 down. With that interest rate, you are never getting out of debt. You will probably pay double the house cost just from the interest the bank is making off you... NOPE

The good thing with a house, is you can rent it out. Or if it gets equity while you bought it, you could always sell it and get the money you pu back you put into it and profit off the equity.

Y’all are talking like a mortgage is a credit card where you pay insterest and your balance gallons every month

Your paying the house off either in 15 years or 30 years by making normal payments

 

[the cac mamba]

Y’all are talking like a mortgage is a credit card where you pay insterest and your balance gallons every month

Your paying the house off either in 15 years or 30 years by making normal payments

no, nothing i said was incorrect. because thats exactly what it is

if you buy a house for 400k and put 100k down, the total cost of the 300k loan is about 500k. you will have paid the bank an extra 200k in interest over those 30 years, plus about 150k in property tax over those 30 years

Mortgage Calculator

put down 100k, borrow 300k. plus a thousand a year for insurance, plus 5000 a year for property tax. your monthly payment =1900 bucks

1900 x 12 x 30 +100,000 = you'll pay 784,000 for the house you bought for 400k. now the value will prolly go up in that 30 years, but those are the hard numbers

 

[CrimsonTider]

no, nothing i said was incorrect. because thats exactly what it is

if you buy a house for 400k and put 100k down, the total cost of the 300k loan is about 500k. you will have paid the bank an extra 200k in interest over those 30 years, plus about 150k in property tax over those 30 years

Who gives a fukk? After 15 years or 30 you don’t have pay anything and the monthly payment should be well within your budget where it doesn’t matter what part is interest

Do y’all live in the real world?

 

[Sterling Archer]

nikka shut your dumbass up. You already admitted to not knowing anything about the area. There's much more that goes in to buying a property than price....

...very true. So where do you live right now?
I say this to say that you are correct but when a nikka living off buford talking about ''the area" of a potential home, its worth chuckling over. Better be living off Old Alabama or Buckhead to be talking like that.

 

[the cac mamba]

Who gives a fukk? After 15 years or 30 you don’t have pay anything and the monthly payment should be well within your budget where it doesn’t matter what part is interest

Do y’all live in the real world?

what a retard. all i did was breakdown how a mortgage works, there's no argument here

 

[CrimsonTider]

what a retard. all i did was breakdown how a mortgage works, there's no argument here

Who needs to be told how borrowing money works?

 

[the cac mamba]

Who needs to be told how borrowing money works?

nobody, so im not sure why you quoted me

 

[xXOGLEGENDXx]

Do y'all read anything? Stop trying to buy houses in NY and Cali. With a dual income you will be more than fine.

 

[Goat poster]

1720 Bonanza Rd 9, Las Vegas, NV 89106 Home for Sale | View Las Vegas Houses

Lol @ anyone saving to invest in a shythole like this on bonanza road

You got any recommendations for a good area in Vegas for a young family?

 

[Goat poster]

These guys complaining about house prices in the US, you should see Australia man, there is a whole generation that can’t afford homes. All because rich mfers from Asia are buyin up all the property and not even living in em or rentin em out.. just driving up the prices and sitting on em... they had an initiative that allowed people that buy a home here to be made citizens and let’s say that opened the flood gates..

Same thing happening in Vancouver Canada, and also Toronto as well.

Shyt is an epidemic.