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Some of this might be your expectation of housing costs? A 220k mortgage, even at 7.5% interest, is still affordable on a 130k salary. This works out to < 25% o
by molsongolden 3y ago
Some of this might be your expectation of housing costs? A 220k mortgage, even at 7.5% interest, is still affordable on a 130k salary. This works out to < 25% of your after-tax income which is pretty average or maybe lower than average (unsure if most affordability stats are quoting pre or post-tax income).
- losteric 3y agotbh the hypernormalization of needing to go in debt and pay interest for a home is extremely scary, regardless of the rate
- hylaride 3y agoIt's been that way for almost a hundred years. It's not so scary when interest rates and values have stayed relatively steady (as they have in most of the post-ww2 era in inflation-adjusted terms). All that seems to have fallen apart around the year 2000 (when interest rates were made lower than they should have been).
- maxerickson 3y agoTo the extent that government tinkering in the lending market ends up making housing more expensive, we should at least treat it as a policy failure.
- kahnclusions 3y agoI don’t understand what that 220k mortgage actually bought… a broom closet? A parking space? A tiny house in a countryside town far from anywhere?
- madphilosopher 3y agoThe 220k is the value of the mortgage and not the original purchase price; there was most likely a downpayment at time of purchase. Or, they recently renewed their mortgage and the remaining amount owing is 220k.