1ºPaul Howell what's funny? Facts? I'm an MLO so I think I would know.
Homes are more expensive today and that's just monetarily factual.
Homes in the 80s simply were not more expensive than they are today. They just aren't. It's like saying the sky is green. It isn't.
It's common to see people just laugh in response. It's okay, I've helped more boomers refinance or purchase cheaper, smaller homes in the last 2 years than ever in my life. The boomers are feeling the effects of their political standards these last 30 years. you're putting a LOT of money in my pocket each month lol.
It's odd that this housing market is actually affecting boomers more than millennials. I think it's quite karma related. So yeah, you can laugh.
At the end of the day, I'm the one laughing to be quite frank.
2ºLynn Marie You mean the Epic Disasters left by Trump that Joe has had to clean up. Trumps' great economy tanked while he Golfed and let more Americans die than any Potus. 25 million people were unemployed during the pandemic, schools had to close and were left to flounder through with little to no help. It was still at 6-7 million unemployed when Joe took over. How's your Trumpcare healthcare doing? How's that wall working, did you see how many 1/6 rioters he's helped or pardoned, See how well Trump did by leaving the Iran nuclear deal, they now have supersonic missiles, see how holding back the weapons from Ukraine worked out, see how well the tariffs on China worked, yep that's just part of the disasters he left us.
3ºSteve Zadorozniak total horseshit... They jacked up spending $ trillions then spent $1.4 Trillion less the following year but still have massive deficit, 50 year record inflation, recession coming, record gas prices and wait until heating bills hit this winter. 7-8% interest rates also crushing housing markets and autos too. Trump rebuilt the military Obama abused and wiped out Isis in the process and basically would down the wars that Biden didn't really have to deal with... Oh and libturds were in charge of Congress and spending in Trumps last two years as Trump had to deal with a brand new virus and all it entailed. You know less than nothing
4ºPaul Howell you should understand the claims you're making are just simply not true.
So: amortization analysis (not including escrow or HOI) strictly P&l:
- Average home cost in 1981: $69k
- 16.63% APR fixed 30yr conventional
- $963/m
- Average salary 1981: $22k
- THE MOST IMPORTANT PART.....Monthly payments adjust for indexed value (since $963 today is not the same as $963 in '81)........ indexation = $304.74 month in 1981
*****DTI with mortgage alone would be roughly
17.2% of monthly income in 1981*****
Now...
- Average home cost: $218k
-5.00% APR fixed 30yr conventional
- $1,172/month (P&l) no escrow
- Average salary: $70k
***DTI = 20% in 2022***
As you can see, homes now are more expensive. And todays rates are even higher than 5%. We're now up to 7.74% on a 30yr conventional as of 11/3/22
You don't see it do you. You're just saying "well people make more now".... right. Correct. The math is adjusted for exactly that. And it's still proven to be more expensive per month in correlation with gross income. Which is how we calculate DTI
5ºFun fact.
As of Jan 2022, the average 30 year fixed rate on a conventional MTG was 3.125%
As of October 2022, the average 30 year fixed rate on a conventional MTG was 6.875%
These are rates WITH 740+ credit score... keep in mind. Higher if not. Which would affect roughly 71% of home buyers.
The average mortgage costs are as follows (costs when comparing average home cost america of $250K)
January:
Rate: 3.125% @ 30yr
Payments: $1,083/m
Total Int: $117k
Total Cost: $367k over 30yr
October:
Rate: 6.875% @ 30yr
Payments: $1,814/m
Total Int: $417k
Total cost: $667k over 30yr
You can see in less than one year, home ownership for new buyers has gone up on average $800/m, NOT including escrow (which keeps going up too) for P&I alone.
Combined with the fact that $250k home will cost you nearly $700k in 30 years, versus not even a year ago you only paid roughly $120k-ish in interest...... ya
This administration has done such a great job. Enjoy the complete burst soon.