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$600 in monthly debt? Whatcha smoking? Groceries alone cost more than that, and we save money by not eating out. Then you gotta add electricity, gas, water, gasoline, auto insurance, mortgage, phone, internet, etc.
Minimum wage is $10.30 here. Utilities can easily be $350. a month. Then another $300 for groceries. Gas, clothes, incidentals another $200. If you have a couple kids, another $800 a month for child care. And you are supposed to save 10% down to buy a house?
Minimum wage is $10.30 here. Utilities can easily be $350. a month. Then another $300 for groceries. Gas, clothes, incidentals another $200. If you have a couple kids, another $800 a month for child care. And you are supposed to save 10% down to buy a house?
Where are you that your utils are that high? I thought mine were high at $75-$100...
Where are you that your utils are that high? I thought mine were high at $75-$100...
Utilities can easily be $300, even upwards of $800+ per month, for a normal sized home if you have something like electric heating. While shopping recently for homes we got to see homeowners' utilities for the course of an entire year in disclosures. Homes with electric everything had utilities $800+ in the winter. Just for about 1800-2200 sqft homes too.
Utilities can easily be $300, even upwards of $800+ per month, for a normal sized home if you have something like electric heating. While shopping recently for homes we got to see homeowners' utilities for the course of an entire year in disclosures. Homes with electric everything had utilities $800+ in the winter. Just for about 1800-2200 sqft homes too.
Also area with extreme temperatures tend to have higher utility bills than places where the weather is comfortable most of the year. hear in texas where you can have 100+ degree weather for most of the spring and summer your gonna keep your AC blasting.
$600 in monthly debt? Whatcha smoking? Groceries alone cost more than that, and we save money by not eating out. Then you gotta add electricity, gas, water, gasoline, auto insurance, mortgage, phone, internet, etc.
Groceries are not debt. Do you take out a loan from the grocery store every week??
Groceries are not debt. Do you take out a loan from the grocery store every week??
What kind of fool buys a house without considering monthly expenses along with monthly debt?
Just because some online calculator doesn't take that into consideration doesn't mean it isn't an important part of the equation.
What kind of fool buys a house without considering monthly expenses along with monthly debt?
You might be surprised...
Lots of people aren't great with managing money. Don't have a written budget and have no idea where their money is going each month. They manage to get a minimum 3-5% down payment together for a house. Maybe they do have some savings, family helps with gift, wedding gifts, etc. They have no idea how much house they can actually afford because they don't have a budget. Just what others tell them they can afford with their income level. Using some inaccurate "rule of thumb" for how much they can spend. What the bank approves them for (which is often much higher than someone should be borrowing).
They buy the big nice house and the additional expenses of home ownership are added into the already disorganized finances. It's a recipe for trouble. It's how people end up house poor. Making a good or even great income but living paycheck to paycheck. Not building any savings and going into debt just to stay afloat.
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?
ah the fact that many parts of the country dont have homes of 300,000. Try 400 to 500,000 and thats a small house, small lot, no coast, no lake, not in a city, etc etc. 80,000 doesnt make it and esp if you include ins, utilities, groceries, auto expenses, child expenses, real estate taxes, income taxes, sales tax, and much misc.
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