4 ms·
> If I was making 80,000 a year I wouldn't be able to afford this modest starter home. You can afford a modest starter home on 80k a year if you're not carryin
by oceanplexian 3y ago
> If I was making 80,000 a year I wouldn't be able to afford this modest starter home.
You can afford a modest starter home on 80k a year if you're not carrying any debt, lenders cap DTI around 40%, or $2600/month, although your finances would be tight, and you wouldn't be able to live in a state with excessive taxes like California.
2023:
- Median US Home Price is $436,000
- Average interest rate: ~6%
- Monthly payment on $348k (20% down) @ 6% = $2,086/month
- cableshaft 3y agoMost people can’t afford to put 20% down on their first home anymore. We only did 3.5% on a ~$230k home. If we waited to save up 20% we still wouldn’t have bought a house because it would have taken several more years and then the home prices jacked up 40% during the pandemic. Instead our home went up in value by that much instead. For your example house they’d have to have saved up $70,000 ahead of time. For people that rent and aren’t in tech that’s not too feasible, especially considering they may have that much in student loans also. I know a couple that managed to do it but they lived (as a married couple) with their parents for several years instead of renting so they could save up for it.