Math for buying a home no longer works out. These charts show why

[Harpy Eagle]

The rock bottom interest rates flooded the country with cheap money which raised the costs of assets like homes.

Houses would be much cheaper if not for the decades of super low interest rates.

There’s no free lunch. You can make money dirt cheap without paying for it somehow.

This moron totally ignores the role the rapid rise in home cost plays in this because he cannot blame it on one person/party.

 

[TheYellowKing]

Still no answer Golfing Gator?

Lemme help you

18% of 70k = 12,600 which means a monthly payment = is $1050

Now

7% of 450k = 31,500 which means a monthly payment = $2625

For shits and giggles

3% of 450k = 13,500 which means a monthly payment = $1125

Do ya get it now dumbass?

 

[TheYellowKing]

This moron totally ignores the role the rapid rise in home cost plays in this because he cannot blame it on one person/party.

And the moron here, you, can't do simple math or read simple charts but you'll defend Biden and the Fed over average Americans til your last breath

 

[TheYellowKing]

The rock bottom interest rates flooded the country with cheap money which raised the costs of assets like homes.

Houses would be much cheaper if not for the decades of super low interest rates.

There’s no free lunch. You can make money dirt cheap without paying for it somehow.

Who said anything about free? Oh wait you're someone else who can't do math

 

[RoshawnMarkwees]

Easy, home prices were only 50k-70k

What's 10-18% of that?


Now whats 7% of 450k math wiz?

It’s a lot more than that. The interest is compounded on the annual principle.
What’s more, a 30k house in 1980 would be worth about $110k today. Still not as inflated as much as property values have increased.

 

[Marener]

Who said anything about free? Oh wait you're someone else who can't do math

It’s an expression, moron.

Way to avoid my entire point.

 

[TheYellowKing]

It’s an expression, moron.

Way to avoid my entire point.

Like you all have avoided mine?

Good thing I did the math for you

 

[1srelluc]

For the average 1st time buyer they are going to spend 40% of their income on a home.

Monthly payments on a $400,000 mortgage At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $2,661 a month.

The old math stated that no more than 30% of your gross monthly income, which is your total income before taxes or other deductions are taken out should be spent on a home.

So, you are looking at 32K+/- a year just on a house payment.

• The average U.S. household income is $87,864.
• The median U.S. household income is $61,937.

 

[JustAnotherNut]

And how is that the fault of someone who has only been in office for 3 years? Did the prices just start going up 3 years ago?

By your very own graph......why yes they did.

View attachment 871380

 

[JustAnotherNut]

And ya'll lucky if your average home cost is only $400K.

Around here it's more like $600K and up

 

[Blaster]

Yes, interest rates are up, nobody is questioning that.

Do you think when they drop that people will magically be able to afford a $400,000 house?

I already own a $400,000 home.

 

[Harpy Eagle]

By your very own graph......why yes they did.

You might want to find a 4th grader to explain the graph to you. Prices have been rising very steadily since the 80s

 

[evenflow1969]

Stop deflecting answer the question. Here's a tool to help you

And your question is answered in the article and charts. But no doubt a lolbertarian like you loves kissing ass of Biden and the Fed

Percentage Calculator

Use our free online percentage calculator for precise results. Learn how to calculate percentages or get quick answers with us.

www.omnicalculator.com

Lol, answer me this ass clown. Wasn't your bitch ass complaining about inflation just a few months ago? What is the only tool to fight inflation that the fed has? How does your dumb ass think home prices raised to what they are?

 

[jotathought]

The math no longer works because consumers are no longer taught the dangers and / or impacts of compounded interest.

 

[citygator]

The Math For Buying a Home No Longer Works. These Charts Show You Why.

What does it take to buy a home in the U.S.? A lot more than it did before the Federal Reserve raised interest rates.

www.wsj.com

I'll tell you why, Biden and his Fed raising rates. Who honestly can afford a home today with rates at or over 7%? The charts and math doesn't lie. Biden and the Fed have ruined this economy and are killing the middle class.

I bought a home in 2000 with an 8% mortgage rate and no one was crying about anything.

The Fed overreacted for sure and I can’t believe they aren’t cutting rates but it’s a crap roll with the post pandemic economy so I dont blame them for doing what they did. Just think they are wrong.

I just bought a second home down on the beach and I would bet it will appreciate 50% in a few years. There’s not much beach real estate left that isn’t super expensive.

 

[jotathought]

You might want to find a 4th grader to explain the graph to you. Prices have been rising very steadily since the 80s

They don't teach this stuff in 4th grade anymore ..

 

[Marener]

Like you all have avoided mine?

Good thing I did the math for you

Not at all. House prices are outrageous. That’s true. They didn’t used to be so bad but what happens when theres a lot of easy money? Asset prices get inflated.

Interest rates aren’t supposed to be zero or nearly zero for decades. That will screw up your economy.

 

[JustAnotherNut]

You might want to find a 4th grader to explain the graph to you. Prices have been rising very steadily since the 80s

Of course the most significant rise has been since 2020........or did you miss that part?

 

[jotathought]

I bought a home in 2000 with an 8% mortgage rate and no one was crying about anything.

The Fed overreacted for sure and I can’t believe they aren’t cutting rates but it’s a crap roll with the post pandemic economy so I dont blame them for doing what they did. Just think they are wrong.

I just bought a second home down on the beach and I would bet it will appreciate 50% in a few years. There’s not much beach real estate left that isn’t super expensive.

Perhaps because interests rates were relatively high from 1994 - early 2000s? 8% may have been a lower rate. During this period, fixed-rate mortgage rates were between roughly 7% - 9% depending on market conditions and economic factors. This would also factor in your credit worthiness, which may have been shitty or good.

 

[Harpy Eagle]

Perhaps because interests rates were relatively high from 1994 - early 2000s? 8% may have been a lower rate. During this period, fixed-rate mortgage rates were between roughly 7% - 9% depending on market conditions and economic factors. This would also factor in your credit worthiness, which may have been shitty or good.

Yes, people got spoiled with unnaturally low interest that were kept low for far too long