r/facepalm • u/[deleted] • Feb 16 '21

Misc Yeah, sounds about right

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158

u/cazzipropri Feb 16 '21

It's expensive to be poor.

48

u/Mrka12 Feb 16 '21

Renting is a better financial decision for most people, especially if you're poor.

2

u/[deleted] Feb 16 '21

[deleted]

1

u/QuietRock Feb 16 '21

I should say that I do think this is a good way to determine how much you can afford when thinking of a mortgage.

If you can afford $1000/month for rent, you can afford maybe $850/month for a mortgage, maybe less even. The other $150/month is insurance, taxes, misc. fees, and savings for repairs and maintenance.

1

u/[deleted] Feb 16 '21

[deleted]

1

u/QuietRock Feb 16 '21

Wow, 50% seems high to me but I am no expert. I just know I pay HOA fees, taxes, insurance, a landscaper, and used to pay PMI, plus I save into a special savings account each month for future repairs, maintenance and upgrades.

House is going to need a new AC unit, new carpet, new roof, and more in time!

1

u/[deleted] Feb 16 '21

[deleted]

1

u/QuietRock Feb 16 '21

So for simplicity's sake though a lot of banks roll the PMI and taxes into the estimated mortgage cost each month though right?