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padizzledonk t1_irfzpwe wrote

Its actually less than that....WAY less depending on the State once you figure in property tax....My property taxes are about 6700 a year in NJ (which is pretty low believe it or not)

E- the more I've thought about it the more I think it doesn't matter because it's not the point of this chart, this is a really effective way to illustrate how much small but relatively major shifts in the interest rates matter....2%-5% doesn't seem like a lot of change but it has a massive effect on the prices of things long term

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Dismal_Flounder_8351 t1_irg984i wrote

Don’t forget that mortgage insurance. Less than 20% down payment and you end up paying for mortgage insurance.

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padizzledonk t1_irgb6ib wrote

I put 60k down on my house and I still got PMI because my credit was less than stellar

5y and it just came off a few months ago over the summer

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[deleted] t1_irgmglb wrote

[deleted]

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beh5036 t1_irhomcb wrote

Just switch companies. My auto insurance did that. So I switched and it’s been 4 years of constant rates or rate decreases.

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nematocyster t1_irgb4e4 wrote

Yeah, but if you have a good credit score, it's pretty negligible. I pay $42/mo on a house about 240k. In 2012, i was paying about $143/mo on a $168k loan. The mortgage process has changed a lot since then (as did losing my dead weight ex's credit score)

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vanman33 t1_irgm9f2 wrote

This always astounds me. I’m in Colorado and while values have exploded at least our property tax is sane. How the hell can anyone justify 5k+ per year and houses worth less than 1MM? My house is probably worth 500k and I pay $1100/yr.

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dinobug77 t1_irgbmu7 wrote

Not everyone lives in the US.

But yes it will be less because of varying criteria including deposit requirements and for the US property tax

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starburst383 t1_irgc4r1 wrote

Yea, I feel like this is looking only at mortgage payment, but since property taxes are different everywhere it's not easily visualized. For example, I pay closer to 4800 I think.

Maybe a colored area behind the line showing the range of possible total payments?

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hmiamid OP t1_irgjtfu wrote

Sorry, I am not familiar with property taxes. I'm not in the US. But it looks like it's variable in time and place. And it's not compounded and wouldn't change with interest rate (at least not directly).

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quintk t1_iri5xuv wrote

Property tax in the US is paid to the town or city.

Property tax is paid once or twice a year and is a percentage of the value of the home. But that percentage changes based on the needs of the town. If everyone’s houses are suddenly worth 20% more, the tax rate percentage will probably decrease (because the town budget hasn’t increased by 20%) and the actual tax in dollars won’t change that much. Different towns will have different tax rates depending on their budgets, the property values, and whether they have other income (for example commercial taxes).

Every US state is run differently. In some states more is done by the state, or they provide more assistance to the towns. These places may have lower property taxes but there may be state income or sales taxes.

Some states provide more services to their residents than others, and as with countries, providing more services, or having more people who need them, means more tax overall. So you can have high property taxes but low or no income or sales taxes, or high income and sales taxes but low property taxes, or all three may be high!

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padizzledonk t1_irgic5q wrote

The more I thought about it the more I realized it doesn't really matter tbh because it's not really the point of the graph- which is to simply illustrate how much the interest rates matter to affordability....and it drives that point home pretty effectively

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