1. Be civil
No trolling, bigotry or other insulting / annoying behaviour
2. No politics
This is non-politics community. For political memes please go to !politicalmemes@lemmy.world
3. No recent reposts
Check for reposts when posting a meme, you can only repost after 1 month
4. No bots
No bots without the express approval of the mods or the admins
5. No Spam/Ads
No advertisements or spam. This is an instance rule and the only way to live.
A collection of some classic Lemmy memes for your enjoyment
Calm down, this isn't the banks screwing the little guy. This number includes tax and possibly insurance
"PITI" (principal, interest, taxes and insurance) is the standard quoted cost. It's just an estimate. You can often pick your own insurance which will change the cost, and if you're buying in cash, insurance may not even be required. (It will almost certainly be required if you have a loan, since the bank wants its assets protected.)
What assets? They put 100% down! Haha
No they didn’t. They put 99.99% down. There’s $1 left.
Oh shit I didn't see that before hahaha
The calculator probably doesn't think that much when it's basically supposed to be an ad for a bank
The home insurance covers the home, so it's useful for all interested parties (owner, possibly bank).
Even if the bank doesn't have any interest in the house (cash sale/no mortgage), I would absolutely want to insure the house!
Owning a house means you don't pay rent, but you do have to pay taxes and, unless you really want to gamble, insurance.
That's not a mortgage though.
Can someone explain this meme to me? If my math is right, the value of that payment stream over 30 years is about $58K at the interest rate mentioned.
Down payment is set to 100%, so they are essentially buying the house, and their mortgage would be 0$, yet they expect to pay 300$ a month.
I'd say it's just a calculator error where someone coded the if statement that checks for a zero rather poorly.
Estimate includes property taxes.
And usually home owners insurance since that is usually held in escrow by your mortgage company. This isn’t the meme OP thinks it is
The estimate rounded up from 99.99%. If you look in the bottom left you can see that they put all but $1 down
Most mortgage calculators add in property taxes, insurance, and HOA fees to give a truer cost to potential homebuyers. So, if you are paying all cash, the mortgage calculator is going to give you the additional costs only.
A lot of times, it is paid in escrow to the mortgage company. However, even if the mortgage company isn't collecting it, it still needs to be paid.
Thanks. But do those costs really add up to around 25% of the house cost? That's more than I would have expected.
I've seen condos where the Strata/HOA fee alone would have been around 25% of the monthly mortgage.
$400 / month strata on a $1600 / month condo. It's practically thievery, no idea how maintaining and apartment is supposed to cost $4800 a year per person. Can't remember how many unit but even assuming a low count of 10 units that's $48,000 a year in maintenance. Seems pretty excessive.
It depends on the area. Both Texas and New Jersey have very high property taxes, so it wouldn't be that surprising. Or it could be expected insurance costs like in Florida, which could be very high.
Curious where you are getting 25%?
At least this amount will, assuming it's just taxes and insurance, be due every month for as long as it's owned. Property taxes in California for example are around 1%/year (so a $377k home would be around $4k/year).
If you own the home outright you may not need insurance, but of course, that's a risk.
Taxes may be severely limited in how much they increase (see: California prop 13), so while they will likely increase it may not match e.g. rental increases.
Curious where you are getting 25%?
Oh hmm, 18%. $377/m for 30 years discounted at the interest rate mentioned gives $58K which is around 18% of the house price of $323K. My mental math was a bit off.
I see. In this case the 30 years is irrelevant I think.
This is probably PITI cost
principal, interest, taxes, insurance. Principal and interest are zero here, but the other two continue for as long as you own the home (property tax is annual like income tax
it's not a one-time-deal like sales tax).
It's not one.
It’s not even a meme.
ITT: people who didn't actually look at the screenshot
1 waka
For real
Do you need a dollar? I can loan you a dollar!
30-year fixed, 5%
For those of you confused as to why being $1 short of the price would translate to $377/mo... This particular calculator factors in things like property taxes, homeowners insurance, HOA fees, and other recurring expenses that are paid for annually, but are typically deducted into an escrow account each month along with your mortgage payment so that you aren't hit with a surprise bill for thousands of dollars at the end of the year.
Not a meme ffs
So… is any picture a meme now?
You can always refinance...
That’s just a bug.
It’s not a bug, that number includes property tax and home insurance which is like 99.99% of it
It’s a bug in that if you pay cash for a house, you won’t be paying into escrow for tax and insurance. Banks require that in the vast majority of mortgages.
This is just a simple online mortgage calculator so it factors in escrow into the monthly payment since that’s what pretty much everyone is going to have.
That's escrow.
That's actually a decent property tax rate where is this
