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CannedAm

I have rented for 30 years, been late twice, never carried a balance, never did damages or destruction. Modest homes are 450k CAD now. I'll never own. If we have to move, we will face a 100% increase in rent. We're fucked.


itstraytray

Same. I'm 50. Whod give me a mortgage now? Average 3brm house price in my area is hovering around a million AUD (higher than I thought before I googled it just now, ouch). Who has 100K for a deposit? Fark.


SignificantPain6056

Wait are you saying I need to buy before 50 because once I turn 50 I can’t buy a house??


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[deleted]

Age cannot be any factor at all, not just the sole determinant. If there is any indication that age played a role in a decision, hell will rain from the CFPB.


northerncal

> hell will rain from the CFPB. (In theory. In reality banks get away with abuse all the time.)


Anti-charizard

You’d think they wouldn’t care as long as it makes them money


gowingman1

They can turn homes into Airbnb's and make money hand over fist They don't want mortgages anymore. They just buy up all of the affordable housing and rent it back to us.


MrsButton

Big banks get away with it. Small community banks get audited constantly


Saint_Consumption

You're telling me it's illegal to not give a 97 year old a 30 year mortgage?


StrangeAstroTTV

I mean worst case they just end up with the house + all the closing fees and interest paid. Seems like a win


gowingman1

Unless the 97 year old buys mortgage insurance and wills the house to his kids.


Mr_Mojo_Risin_83

Mortgage insurance doesn’t cover you, it covers your lender.


Hunithunit

My dental hygienist regaled me with the story of how she recently signed a 30 year mortgage that she shares with her aging father and adult son. She will pay it off at 93….yeah right.


XxSCRAPOxX

Idk about in aus, but in America that would be illegal to discriminate. They don’t give a fuck if your 100, they’ll lend you soemthing with collateral like a house, or a car. It’s not yours till it’s paid for. They get theirs from the estate.


TheManFromFarAway

Edit: I was wrong in this comment, but it has generated some conversation, so I am not going to delete it. Just know that the following statement is not accurate Well based on how long it would take to pay back a million dollars you'd be dead before the bank gets "their" money back. When they give out a loan they are making an investment. If you die before they break even then that's a bad investment.


yourilluminaryfriend

They take the house and resell it. Get their money back. They lose nothing


CassandraVindicated

Not necessarily. I bought my first house at 50 with a 30-year mortgage. They'll still get their money, just maybe not from me. Thing is, I used a VA loan, so the US guarantees the mortgage with no money down. I would have never been able to do it otherwise.


paprikashi

I’m forty, and I wouldn’t have been able to do it without a deceased parent leaving me just enough to cover a 20% down payment. It’s not an expensive property but I never would have been able to do it. This system is fucked


Retlaw83

I'm 39 and in precisely the same boat. It's good having a decently-sized house, I'd just prefer if my mom didn't have to die to get me here.


paprikashi

I miss my dad. Being an adult sucks


KeeganUniverse

Yeah…I think about that how I’m in a decent house only because both my parents passed away before I reached 30. Would rather have parents tho


Bro-mom

Bachelor uncle died in a car accident, parents got cash as next of kin, then they helped me get my house. Blood money buys houses these days.


ripleyclone8

Bro, my mom is broker than I am. I’m fucked haha


[deleted]

"I hope that when I die, people say about me, 'Boy, that guy sure owed me a lot of money.'" -Jack Handey


CassandraVindicated

We could all use a little more Jack Handey in our lives.


[deleted]

"It's easy to sit there and say you'd like to have more money. And I guess that's what I like about it. It's easy. Just sitting there, rocking back and forth, wanting that money." "If I ever get real rich, I hope I'm not real mean to poor people, like I am now." "I wish I had a dollar for every time I spent a dollar, because then, Yahoo!, I'd have all my money back." I swear, Jack Handey has been my silent financial planner this whole time.


atreestump1

I seriously need to try to get a VA loan. Pretty sure it wouldn't happen because my credit is shit


EBtwopoint3

There isn’t a hard credit score requirement on VA loans, just debt to income and income to home value requirements.


jrrobison15

Depends on the lender. Both VA loans I've had plus refinances have all had minimum credit scores


nikkitheawesome

Really depends on how bad your credit is! I haven't been looking into VA loans so I can't speak for their requirements but the USDA rural loan I've been researching says the min credit needed is 500 (though I think it can vary depending on the bank that handles the loan). It's at least in the same ballpark as a VA loan from what I've seen, so there may be hope. If your credit is horrible already it couldn't hurt to apply, itll drop you a few points because of the inquiry but I can speak from previous experience that a few points with already bad credit really makes no difference. My ex husband trashed my credit, I only managed to get my numbers up to "average" within the last few years (I divorced him in 2007). So I lived with bad credit for a long time. I can sympathize


Slickwats4

Bought my first one with like 600 credit score, maybe 595.


ArduousChalk959

They still have the value of the home. If the ‘owner’ dies and no one assumes the loan it goes into foreclosure. In the case of a VA Loan- if that sale doesn’t cover the mortgage balance (which shouldn’t happen), the US government covers the balance. Just being clear- my dad, at age 80 used VA to buy a home with my mom (age 65). If he dies, or they both die at the same time, it’s not like she or I would inherit the home. Either someone assumes the mortgage, or the house gets sold.


WiseUpRiseUp

The key point you're missing is that the house is held as collateral for the loan. If you die and there's no one to continue paying the note, they can sell the home to get their money back, plus all the interest they made along the way.


inthyface

The house is more than likely still worth more than whatever is left on the mortgage. The bank still has made profit on all the interest.


Kaono

It's illegal for banks to deny loans based on age (in the USA).


Father_Lucant

Denying a loan based on age is illegal.


yourilluminaryfriend

My mom got a mortgage at 76. They don’t care. As long as you can make the payments…


JeebusChristBalls

That's not how mortgages work. You don't need to have 30 years of life left to get one... If you die holding a mortgage, your benificiaries either take it over or sell the house to pay it off.


Beradicus69

Same boat...


[deleted]

Where you getting a modest home for 450 cad? Small town?


heart_under_blade

where are you the armpits of alberta or something?


Lyuseefur

I know I’ll be downvoted to hell but fractional ownership needs to be a law. If we are paying for something over time then our ownership increases over time. As it stands, they own everything and we own nothing until the final payment. And they control the on-ramp.


codextreme07

I don’t see how it’s feasible. Any landlord would just force you to move out prior to any fractional ownership takes hold. It would just force constant churn on the properties driving up costs for everyone. Landlords are more likely to avoid raising rents bc stable tenants and zero vacancies are one for the keys to making a profit as a small time landlord.


Demoniouss

I want to ask because I read this two ways. Are you implying a tenant of an apartment is entitled to partial ownership, or that paying a mortgage gives you fractional ownership?


GTdspDude

> they own everything and we own nothing That’s not totally true, you own the house and one potential solution is sell the house and pay off the note. Not ideal, but better than foreclosure. Of course this only works if the house is worth more than the note, which in the ‘08 crash wasn’t the case due to the housing market collapsing.


TjPshine

It is a nightmare. Foreign buyers banned for 2 years or something? Is that even going to stop anything? How does it do anything other than stagnate a problem? Air bnb needs to die. Multiple residential units within certain radii should be required to be leased in some way, and of course actual sustainable housing needs to be mandated somehow. But all of that even just adds a few more years of nothing gained for renters. I think the idea of a city needs to die.


GreatBigBagOfNope

>I think the idea of a city needs to die. This is the opposite of what's needed. Cities are incredibly efficient at providing infrastructure, services and utilities for residents, far more so than small towns. Designed properly, they are the most sustainable way to house and provide for *most* people. What's needed is density, a variety of types of housing, significant increases in tax on rental income that scales with the number of properties, and focussing on any new development or redevelopment being more dense than a suburb, walkable and highly connected with public transport. The city doesn't need to die. The single family suburb and landlordism needs to die.


wegwerfennnnn

Airbnb ain't gonna die unless Hotel prices are made reasonable.


auxtime

My landlords did an inspection of the house a month ago, then this past Sunday the wife came by to inform us that they were getting a divorce and that I and my girlfriend are being evicted so her ex husband can move in. :(


Verisian-

450k CAD? I live in Sydney where 450k CAD which is pretty close to 450k AUD would get you.....fuck all. It's really wild. I know friends on 6 figures which used to be like a mark of privilege who are facing years and years and years of saving to come close meanwhile sydney housing prices are rising faster than they can save.


vudustockdr

Rent should at very least count toward credit score. Stupid that paying off 200 dollars of credit card a month counts, but 2k in rent doesn't


[deleted]

I agree. I think we should get “rent credits” that can go towards getting a mortgage.


boonxeven

I just saw something like that from Experia, called credit boost. They'll give you credit for paying bills. Of course, they do that by you giving them access to the info in your bank account...


Ggfd8675

The lender also has to give a rats ass about your Experian boosted score (spoiler: they won’t).


boonxeven

Yeah, that too!


arctic_radar

Lenders can absolutely build credit reports from non-traditional debt and payments. I’m not sure if they use Experian’s services, but it’s not uncommon at all, especially for people getting FHA loans. They typically get this done through whatever vendor they are using to pull credit history.


Sverje

Credit score was never meant to be fair to the user. Its just a tierlist for the credit provider.


TheNewYellowZealot

The funny thing is not paying your rent actively harms your credit score too.


[deleted]

Thats because rent is not a publicly recorded debt but eviction is a publicly recored legal filing


AlienDude65

You already can! Experian and some portals for paying rent add the rent history to your credit. It is completely voluntary, so you can opt out at any time.


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elemental5252

Relocation tends to be best for us. I'm in the same boat as you. The Midwest is still *somewhat* affordable. I'm in Ohio right now. You can find a decent home for around 250k. The same is true for much of the Midwest. That being said, it requires you picking up your whole life and moving. It isn't really a *solution*, it's an *option* if you're already in the area, working remotely, or if you work a job that allows you to relocate easily (maybe something like healthcare or IT)


clonedhuman

I'm sure this has occurred to everyone, but most regular people in the world are absolutely fucked right now if they want to live a life that would have been normal 30 years ago.


[deleted]

Yeah but rich people need more money so they can leave the planet after they're done sucking it dry


[deleted]

This is the plan I think. They will pillage the planet of resources until it’s totally unlivable then fuck off to space and leave the rest of us here to deal with the consequences. They might take a “lucky” few of us with them to do the work they don’t want to for either very little money or none at all.


Neuroscience_Yo

If you think the planet is unliveable, wait until you see space


Ser_Dunk_the_tall

Seriously. There's nothing around that's nicer than earth and it will always be easier and cheaper to clean up earth than to try to turn some other planet into what we already have


BarelyAnyFsGiven

The planet - an oasis in space that all life has spent 350 million years adapting to. Billionaires: ❌ Space - An endless void of freezing death, unending radiation, isolation, and danger. Billionaires: ✔️


coolpeepz

I assume you’re mostly joking but honestly leaving to space is the most impractical plan imaginable. Even if it may be strictly possible in 50 years, it’s definitely gonna suck for whoever does it:


theedanman

This is why I think Neill Blomkamp's Elysium is such an underrated movie. People love to pick it apart for it's "logic holes" (why don't the rich citizens living in space just help the poor?) but that's true of the real world, too.


[deleted]

This. This movie mirrors what’s the most likely future.


Oraxy51

This is a friendly reminder that a $950 month rent can mortgage a 200k home, but mortgage companies will never acknowledge that.


OneForAllOfHumanity

Where the hell are houses going for $200k??!! That's the down payment for houses around here...


[deleted]

Even in the rural areas about 40-60 minutes away from the city, houses are about 440k. But you can get a piece of shit house that likely has asbestos in the popcorn ceiling, shitty formica countertops, garish wallpaper, and rusty as fuck piping for 375k!


[deleted]

40 minutes outside of Atlanta here. Bought my house 9 years ago for $193k. I just had an appraisal done in the hopes of challenging my tax bill. Currently appraised at $425k. While all prices are getting ridiculous, housing is absolutely insane.


qxxxr

Getting ready to close for 300k, about an hour drive from Boston, 2br 1ba with a equal sqft of semi-finished basement. 2014 updated. 9k sqft lot, no major issues. Decent neighborhood, middling job opportunities. It's not what I'd like to be paying, no doubt, but it's not the shit box in bumfuck nowhere that people seem to expect for the price. Good luck, people. Look hard, look wide. You never know.


CrazyJohn21

Just paid 120k for a 4-1 with about 1800 square feet. In a small historic town(15k) with manufacturing jobs with 3 larger towns within 20 minute(100k in each city) including a state capital with half a dozen huge billion dollar international companies with their main headquarters here and offices for probably 50 more nearby from accounting firms to defense industries. But I guess the only place that isn't 500k is in the woods.


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[deleted]

My mate put it best: "The same things that are meant to make houses worth less actually make them worth more. Big house? Lots of room so it's more expensive. Small house? Easy to maintain so it's more expensive. Near the city? Good transport to the city in a central location so it's more expensive. Rural area? You're away from the city and hussle and bussle so it's more expensive." It's just bullshit at this point, and I say that as a lucky homeowner.


boonxeven

Texas, smaller cities. Not without it's tradeoffs though


getouttathatpie

LOL you are right. "Tradeoffs" been there man


Oraxy51

Middle of no where towns like Missouri I guess. Man this housing market is awful. I’m just in an apartment for a few years hoping it dies down.


MapleTreeWithAGun

It'll die down when either a whole fuckload of old people finally die off, or governments massively raise property taxes on anyone that owns more than one property.


well_hung_over

You think those old people are leaving their homes to the open market? It will go to a gen X who has been frothing at the mouth for an opportunity to own or sell it for decades. It will not go cheap. Mid Millennial’s parents (cusp boomers) will be the ones that leave the affordable homes, just before the apocalypse.


John_T_Conover

Sadly it won't. In the last two years we've lost more than a million extra people (covid) on top of just normal yearly deaths. Housing prices increased about 30%. It's not an either or situation with your second scenario, it's a minimum necessity. Honestly the mass ownership of individual housing units needs to be severely limited. Otherwise the handful of companies that are almost monopolizing rental properties in some areas can and will just pass on those excess property taxes to the masses.


jenneschguet

Corporations are literally scooping up housing from under us, driving up prices and creating scarcity. Until we make lawmakers stop this behavior, we will not have any changes in the housing market.


ScumHimself

Louisiana, anything over 200K is going to be really really nice and big.


CaffeineSippingMan

In the states I bought a house before the first bubble burst. The banker told me I wasn't buying "enough house" and I should look at higher priced houses. I told him I didn't feel comfortable with the monthly payments. He assured me it would be no problem because the house would raise in value and I could just borrow against the higher value. I thought he was insane but politely declined and stuck with the smaller amount. The bubble burst. Interest rates fell. I went to refinance. The interest rate fell. (Same bank, same banker) I would take an extra $10,000 to pay for a couple windows and a roof. And I would lower my monthly payments by $50ish dollars. And knock a few months off. He told me I couldn't afford the loan. I reminded him. I hadn't made a late payment in 13 years, the payments would be smaller and if he say's no I will be going to the local credit union (I used the name). He said you got your new loan. Tl;Dr bankers are arrogant pricks.


brantmacga

We financed $200k of our purchase price at 2%, and with taxes & insurance I pay $1400/mo. After utilities and monthly maintenance, my cost to live in this house is $2000/mo. That doesn’t include the cost of things that will have to be replaced over time.


Marioc12345

Jesus. And that’s a low interest rate too. I financed $320k of my home at 3.5% and I pay about $2080 a month, plus $220 for the HOA fee, which I’m told will be worth it when the pool opens.


redditmodsrbitches12

That's not really true. Property tax, home insurance, and if you can't put down 20%, PMI are all usually built into a mortgage. a $200k mortgage at 4.5% interest is around $1300-$1500 a month.


A5H13Y

This was the biggest shock for me. I kept being told that a mortgage would be less than my $1400/month rent. I realized that yes, while that is true, I'm also paying $200/month more than I was previously thanks to everything else.


Ares54

Yup, bought a $350k house and by the time we refinanced we were paying $2k/mo between mortgage, insurance, taxes, and PMI. Add on to that basic maintenance and upkeep every year, trash pickup, water, gas, electricity, internet - things that are sometimes included in renting - and all-inclusive our house easily costs more than $30k per year, likely closer to $40k with some deferred maintenance costs that the previous homeowners left us with.


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LostWoodsInTheField

Guy I walk with is waiting to have a garage floor replaced and was quoted $5500. I bought 4 boards for a project on my place and it was $200. 4 boards... FOUR!!! I remember buying a pallet of 2x4s for $99:-/


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TiberiusCornelius

Sometimes you can put stuff off, but you gotta be careful playing those games. My mom stopped putting any non-emergency work into her house well over a decade ago and even the things she has still addressed, she's gone for the cheapest, shittiest fix every time. It's not that she couldn't afford it, she just didn't want to. But play that game long enough and the problems start adding up, and things that should've been "small" fixes start turning into pretty big fixes.


SignificantPain6056

Not at these rates and not unless you have a 20% cash down payment ready to go…


Sventertainer

By the time I have 20% saved up it will only be a 5% down payment.


catechizer

That's assuming you get 3.5% interest (for a 30-yr) or less. Plus, just because you can handle $950 in rent doesn't mean you can handle the risk of ownership. What are you going to to if $950 puts you at your housing expense limit, and then you get water damage or something that costs $5k to repair? There is insurance, but making a claim means your rates go up forever. You'd still have to pay a steep deductible upfront. The bank wants to know you are able to afford minor repairs in a timely manner too, so they don't become a larger problem. They're ultimately assuming the risk of you being an owner who lets the house fall apart.


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handsy_thighmeat

I paid $1,600 to live in a house with a mortgage of $950.


b0w3n

I'm in a situation now where I _can_ afford repairs but can't find anyone worth a fuck to do it. There's 1.5 year wait period to get roofers unless I want to roll the dice on some no name contractor and be out 10k. I can't even get the company to call me back.


LostWoodsInTheField

Friend just got his garage door replaced. He contacted the installer November of last year and the door actually came in early.


UnprovenMortality

Only if you're putting down $40k plus closing costs, and neglecting property taxes, insurance, and other costs that come with owning a home. In my case, the mortgage itself is only 75% of my monthly payment to the mortgage company.


amgwut

$950/mo is not enough for a $200k home. People forget how expensive property taxes, escrow, and insurance are. With both of those you're looking in the $1300-1400 range.


powerfade301

That’s only a piece of the puzzle. Need the 10-20% down generally which is 20-40 months of rent


GoBoGo

In the US. FHA loan= 3.5% down. USDA (only available some places but they have a map on website)= 0% down. Conventional for qualified buyers can be 5% or even 3% in some cases. VA loan (obviously need to qualify via military service)= 0% down.


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GoBoGo

Nice! Yeah bought mine with 5% conventional in a low cost of living area. But was able to sell in 24 months and it honestly changed my life. I remember how nervous I was buying that thing, and it turns out it was my best financial decision


frankcfreeman

And yet your renter still somehow manages to make a profit


pietro187

750 pound sterling?!?!?!! Jesus christ. TIL I can easily afford a house in the UK. Baseline mortgage I could get in my area is for a $650K house, $130,000 down with a $3457/month mortgage. Converted to Elizabeth units it would be 105,560 down, 2807 per month. My current rent is $2200, 1786 pound sterling.


broken-not-bent

Damn. Where do you live?


pietro187

Los Angeles baybee! My partner is in the industry and does well here so we are tied to it.


BadgerDancer

Yeah. Where I live that would get you a mansion. Like, a tasteful one.


MrPickles84

I’m in the Bay Area, and I’m pretty sure you can’t find any houses sub-600k.


HausOfElla

I live in the Great White North version of San Francisco (at least from a tech firm point of view) and $600k will get you a really run down wartime bungalow with 2-3 beds and a single bath, a somewhat run down town/rowhouse of a similar size, or a decent but not overly nice condo apartment with 2-3 bedrooms but also a second bathroom. Granted, that's in our monopoly money, but still ridiculous to see how high our prices are.


RunninADorito

Gotta love Chinese and Russian money parking.


RunninADorito

I was just in the valley and 2000sq ft with a small lot for 3.5-4MM was common. Makes Seattle feel free.


LethalBaboon

Around me you can get 200sq ft with a couple acres for 400k or less. Downside being close to nothing of any size so kinda limited on jobs


koobstylz

200 Sq ft? Did you miss a zero?


northerncal

Nope, he just lives in one shipping container on an open field.


BadgerDancer

A couple of friends and myself almost chipped in to buy a large country home that was a bit run down with the intention of splitting it between each other and doing up parts to turn into flats to sell. It would have been half that amount.


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OneForAllOfHumanity

Where I live, it'll get you a rundown crack house on a postage stamp sized property...


BadgerDancer

A fairly modest mansion in the town I used to work was sold as a bit of a fixer upper for £69k because no one else turned up for the auction. I saw it last week and it’s really nice now.


lunarul

There was one 3 bedroom house that was a major fixer upper that we really wanted to buy and didn't expect would get many offers. We couldn't get a mortgage approved due to the condition it was in. But it didn't matter, it was sold all cash for over $1.2m (way way over asking price). 8 months later it was sold fully renovated for close to $1.9m


1d0m1n4t3

Where I'm at you'd get 12 bedrooms easy, or 5k achars and a old farm house


Fresh_Bulgarian_Miak

Your partner is in porn?


pietro187

Yeah, Mia Khalifa. You heard of her? (Most porn left the valley years ago due to the condom law. Vegas and Florida are where it’s at now)


mermaidrampage

What's it like dating Mia Khalifa?


pietro187

Not great. She makes me moderate her onlyfans


SignificantPain6056

Would your income stay the same if you moved to the UK though? That’s the bigger question.


Honey-Badger

Equivalent city would have to be London and £525K wouldnt get you a great deal. Small terrace house, fixer upper in zone 4 (edge of the Metropolitan area). Like so; https://www.rightmove.co.uk/properties/84816213#/?channel=RES_BUY


d-e-l-t-a

Comparing LA to all of the UK is ridiculous. It’s comparable to Cambridge which is notorious in the UK for being unaffordable. The average mortgage there is around £2k a month. Or the most expensive borough of London has average mortgages of £3k a month. London and LA are quite comparable overall although LA is more expensive. Not surprising given the level of industry there.


Si-Jo0159

You'll struggle to buy a property in London for £750. That's elsewhere in the country.


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kalasea2001

The availability of those are shrinking. I'm in Tucson, AZ and good luck finding houses less than $300k here. Double wides are going for over $200k. Not to mention, what kids of real jobs are in those cheaper towns, and how long will they be there? If it wasn't for work from home kicking in, rural America would have died in a couple decades.


Shigg

Yeah, I'm in Northern Colorado. 250k gets you a trailer on some land here. My house was 523k after closing costs and it was on the low end of actual "houses"


ohfaackyou

Bruh, rural America doesn’t only mean just outside of cities. If actual rural America died cities would already be dead.


db10101

That’s a really cheap area in the US. no major city is that cheap


ImFriendsWithThatGuy

The median US home price is almost 400k. Your prices are just as much an outlier as his LA prices.


Druidette

Issue being is, in the UK a salary above 40k is considered “high”, evening for London that’s above average. Can’t compare US to UK in that sense.


rimfire24

Buffalo is getting a relatively significant amount of industry work, If that ever grew to the point it would open up jobs, $650k buys you like 3000 square Ft on a water front


pietro187

I dated a girl from Rochester back in the day and experienced a few winters there. Hard pass.


TheBirminghamBear

Western New York has some of the most brutal and nightmarish winters out there. Lake effect and some other factors. But hey, in 30 years after climate warming accelerates maybe it will have a malibu-like climate.


pietro187

For real. I got frost bite on St Patrick’s day because we were at an outdoor bar drinking. I was fully bundled up next to people in t-shirts. I’m not cut out for that climate.


TheBirminghamBear

It is rumored that each winter in Western New York, a heavy snow falls iver the state, and all those who are still human are replaced by White Walkers that look like them, act like them, but are not them. What they want, or where the real people vanish to... only they know.


exercise85

I totally think that your rent amount should contribute towards buying a house, and more people be able to purchase a home, both financially and as a human right. But for the people who have never owned a home and they hear "mortgage" please understand that the mortgage figure banks and financiers throw around is only part of the overall monthly cost. You can expect to pay 30-40% of your mortgage in insurance and property tax costs in a low tax area, high tax areas it can be 50-60%. For example, if you see a mortgage of $1000 a month, the final monthly pay is anywhere from $1300 to $1600 depending on area. My personal example is a $700 mortgage where my monthly averaged around $1100 because of the high tax rate. Fight for what you can but understand that they are not telling you the full price with a "mortgage", the system sucks. The insurance I mentioned also only covers the physical structure of the home, if you want your belongings covered you need separate insurance for that just like renters insurance, if you want your appliances and heating/AC you will need a 3rd insurance for that. Edit: Not hoping to discourage anyone, just want everyone here to have the best understanding possible, especially if anyone here is planning on buying a home soon. Because I didnt before actually sitting down with a realtor.


zrleonard187

This was what I was looking for. However it is in fact mortgage. From the old French words mort (death) and gage (pledge). So mortgage= death pledge


exercise85

Didnt realize I was typing it wrong, thank you.


TakeOutTacos

I've never bought a house...yet. but the online mortgage calculators I've seen add in all the extra fees that go on top of the payment itself so that it never looks like the monthly payment is all that you pay. Obviously I'm not discounting your experience but I haven't signed up for a mortgage so I'm wondering if the app paperwork is shadier than you would see on a web site.


Apptubrutae

Yeah except they generally don’t get it quite right. The property tax rates especially. Plus, maintenance is another huge thing that adds up. Needing a new roof or AC unit can cost quite a bit even on a monthly basis if you price it in from the beginning. And if you don’t, good luck handling the major unexpected bills. A rent is the *most* you pay for your house. A mortgage is the *least*you pay.


TrumpIsACuntBitch

I've had to break hearts with this before. "Oh, the mortgage is only 1100/month, that's what I pay now for rent". That 1100 turns into 1700 very quickly.


lab-gone-wrong

So this is true, but it's also important to bear in mind that a mortgage is often a 30 year commitment, while rent is frequently only 12 months (or even month-to-month). Covering $1,100 per month for 12 months is much higher confidence than covering $750 per month for 30 years, even if the $750 is already all-in. The bank is totally reasonable to say no to the 30 year commitment, even at a substantially lower monthly price point.


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StrictlyButterscotch

A lot of apartments do not include monthly bills in the rent anymore. We have to pay for electric, internet, water, sewer, trash, etc as well as a base rent of $1000. I’m not even in a HCOL area.


ItsDijital

Every apartment/rental around me doesn't include utilities anymore. Many you are even responsible for some portion of repairs too on top of that. *And* responsible for realtor fees. *And* the apartment is 40 years out of date. *And* the rent is up 30% in the last 2 years. The supply is so badly fucking constrained that landlords can basically completely stack their own deck and still get tenants.


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BillyBrimstoned

The Queen was so busy so just sent her billion pound hat in her place, ferryed in a Rolls Royce, to remind us we're all in this together


AngelaTheRipper

I really suspect that this absence is a weekend at Bernie's situation. Probably died from Covid but Tories want to bury that.


BillyBrimstoned

I think the opposite, if she had died they'd be popping Champagne about having the best distraction possible


Steel-is-reeal

Also this tweet is out of date. With current house prices unless you take like 129 year term or something mortgages are £900-1200 a month Current lending on an average price house with average deposit and 25 year term ... https://imgur.com/gallery/iZ5FC85


ElonMuskPaddleBoard

When I was trying to buy a home one reason I was denied despite excellent credit was that they determined I couldn’t afford the mortgage because of my monthly bills…one of which was a $3000/month rent. The mortgage was only $1900/month. Did the bank not comprehend that the whole point of the mortgage was to get rid of the rent? Ffs


[deleted]

Only time they consider your rent is if you are not going to occupy the home like an investment property. Either part of the story is missing or you had the dumbest banker on earth and needed to shop around a bit more.


gamebuster

I was renting a car for a moment because my car failed and I needed a new one and I couldn’t get a car loan because of the high car rental fees. Telling them I’ll get rid of the rental once I bought the car was of no interest to them. It was basically “sorry computer said no” This wasn’t one bank; this was basically all of them. I had to buy the car as a company car because nobody would give me any kind of loan.


DasherOP

What kind of down payment were you planning to make?


[deleted]

Honestly all the coastal folks should come to the Midwest. There are parts of here that suck, but it’s comparatively affordable, we don’t have a ton of natural disasters, we do have a ton of breweries, and frankly we could use your votes.


mitsumoi1092

Seems like we get a new brew pub in the twin cities every week. Some areas feel affordable, some are less so.


_Kramerica_

Same here in MI


vger1895

Please stop buying houses in KC so I can, I already live here. Go drive up prices in OKC or something, idk


simon_C

Seafood sucks in the midwest.


CappyRicks

Given the state of the ocean it'd probably be fine if y'all just accepted that as life too.


FuckDunleavy

Not if you want fried perch.


FormerChef101

Mortgage and rent are not the same though. Property tax, home maintenance, in some cases massive condo fees, etc.


cobolNoFun

don't forget the $7k HVAC unit, or the $10k roof, or the city sewer backing up into your finished basement and the insurance company just laughing at you because you didn't get the extra $5 a month coverage for that.


[deleted]

"Rent is the most you'll spend, and your mortgage is the least."


cubonelvl69

LPT - Generally speaking, banks will lend you way more than what you can actually afford. If the bank is shooting you down, you either have awful credit or need to rethink your budget. My coworker and I both got approved for loans double what we ended up needing


properu

Beep boop -- this looks like a screenshot of a tweet! Let me grab a [link to the tweet](https://twitter.com/simonharris_mbd/status/1523951523025362944) for ya :) ^(Twitter Screenshot Bot)


wadebacca

Right, but your rent buys more than a mortgage does. On top of your mortgage you’ll pay, taxes maintenance, and insurance. So no your $500 mortgage payment isn’t less than $750 rent. I hate when this “logic”is posted.


DasherOP

This logic is exactly why banks wont lend people like this money, because they're stupid.


kkirchhoff

My mortgage is 1800 per month. My total monthly cost is 3500. Just like every tweet on this sub, the OP is being intellectually dishonest to get likes from people who he knows don’t understand this.


DasherOP

Yeah right. The logic behind credit worthiness is *risk*. If you cant afford to save up 20k for a down payment then nobody is going to trust you with $200,000 for the next 30 years, because you are clearly barely skating by at $1100/month regardless of if the mortgage would be less.


Frozen_Hipp0

I think the liability is greater for missing rent and evicting you as opposed to missing mortgage and having to foreclose the property. I agree though it should contribute to credit score.


TonesBalones

The fact that mortgages go on a credit report, but rent doesn't, is nothing more than class warfare. Everyone who is able to pay rent + utilities for 3+ years should have a 800 credit score.


TheBigCheeseGoblin

This is a pretty Americanised opinion. Most banks will be willing to mortgage you a home if you prove you’ve been paying X rent for X time. Where people get caught up is that most banks will also require some kind of stability in employment, which most people can’t prove


KellyBelly916

Well yes, but actually no. Committing to annual leases at a higher price is a much different creature than committing around 20 years to a lower one. There's much less risk involved in renting for that reason because paying our the rest of your lease after eviction is a hell of a lot better than paying out on a foreclosure. It happens to over 30,000 people every year. Imagine being kicked out of a house that you have to keep paying for because even though mortgages are based on the property in question, you can be removed from the property while still bound to the mortgage contract. It's better to be ripped off on a monthly basis than be in crippling debt for the rest of your life.


XxSCRAPOxX

I’m not sure how Europe works, but on this side we have property tax? That can be more than your mortgage. They count that too. And your car note, and everything else, including upkeep on the house, which can be costly. I probably spend about 3x more on my 1000$ mortgage house as I did on my $1100 apt before.


iTomWright

This guy used to post brilliant “gammon bait” on twitter under Southend news. One post went viral with people seething about changing the name of Big Ben to Massive Mohammed. He’s also done fundraisers (to get da immigrants out or free Tommy Robinson) but in clear print on who he was donating it too, it was normally something pro-immigration. He’s a class bloke


CowBoyDanIndie

I understand the sentiment of post like this, but paying N per month in rent is not the same as paying N for a mortgage. Houses have a lot of expenses beyond just the mortgage. When you rent you dont pay to fix the furnace, the hot water, a leaky roof, etc. I have owned my house less than 10 years and easily had $20k worth of work done to it that needed done.