My parents sold their home in NE Ohio in the early 2000s for $240K. The home was built in in 1968. Their 360th and final mortgage payment of $162 was in 1998.jalbert wrote:Yes. What you would pay in nominal terms over 30 years if you kept the house that long and paid off the loan is not a very informative comparison to current rent. If inflation stays positive, the loan payment is decreasing in real terms over time. The homeowner's mortgage deduction from taxable income is another wrinkle.
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Why would you need a $240k house for just you?Keepcalm wrote:Looked at a house today, $240,000 with a 30 year fixed at 3.75% APR I will pay $270,000 in interest/$510,000 total principle+interest at the end of the 30 years.
Add in all the home maintenance, and the taxes.
This is why I rent. I have no kids, no wife. Don't need it.
The white picket fence American dream is a bunch of hog wash propoganda.
Am I missing an angle here?
I bought a 1 bedroom cooperative apartment for $46,000. I paid cash. I pay $230 per month in monthly dues which includes building insurance, water, sewer, trash, property taxes and reserve savings. The cooperative covers water heater and HVAC replacement. It is well funded. I will easily break even vs the cost of renting after 3 or 4 years.