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Thank goodness for time zones. By the time I read the OP other knowledgeable folks had already chimed in on this one. So many reasons...wouldn't have known which one to pick first!
$40K minus taxes
New Car payments plus insurance and upkeep $600 a month from the budget each
Food and Miscalaneous $300 to $500 each month
Many have student loans $200 to $1000 month
Consumer debt/Credit card payment $400 monthly (some way more)
Living my best life monthly expense: $300
This is before utilities and other responsibilities. It is doable.
The above eats half of their paycheck. So for many it is hard to save the downpayment and closing cost.
Not many are willing to make the sacrifice. But you are correct. If many would slash their unnecessary expenses they could afford a house
Not everyone wants (or should) own a home? How's that for another reason?
Aside from the ability to afford a monthly payment, homes can be expensive to maintain. Replace a furnace? New roof?
It's not necessarily about the ability to afford a monthly payment. Often times, people don't consider the long-term costs of ownership and people get themselves into trouble.
Keep in mind that the PMI pays for the home insurance so the homeowner won't have to pay separately.
HUH???? PMI is "mortgage insurance" that insures the LENDER against loss on high LTV homes. It doesn't do anything for the homeowner except cost him money to pay for the lender's insurance premiums. It sure as heck doesn't provide homeowner's insurance. Where did you ever get the idea that PMI was "home insurance"?????
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"I didn't do it, nobody saw me"
(set 1 day ago)
Location: Ocala, FL
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I found this quote about PMI online:
Quote:
PMI is insurance for the mortgage lender's benefit, not yours. You pay a monthly premium to the insurer, and the coverage will pay a portion of the balance due to the mortgage lender in the event you default on the home loan. ...
I misquoted and thought I would correct my prior statement. My error.
I misquoted and thought I would correct my prior statement. My error.
No problem. I just didn't want your incorrect statement to stand uncorrected and perhaps mislead others who didn't know. We all make mistakes. In fact, I remember one I made about 40 years ago.
Not counting coastal cities and high cost of living cities, how do most people not afford homes? I used a mortgage calculator, and if a couple has a income of 80k (40k a person), 600 in monthly debt, and a down payment if 10k, they could afford a home of 300k! Even 200k will get you something decent. That’s a pretty nice home in most of America, and making 40k a year isn’t hard. What am I missing?
“Most” people do. The homeownership rate here in MN is 74.5%. That is higher than the nation rate, but even nationally “most” people live in a home that they own.
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