• YoBuckStopsHere@lemmy.world
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    1 year ago

    I can tell you’ve never bought a house if you think you need $200K to do it. It’s more like $20K down and you refinance after a year to get a lower interest rate.

    • MucherBucher@feddit.de
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      1 year ago

      I can tell your house is nothing like what I’d wanna live in. If you can get a house for maybe 70k, yeah a downpayment of 20k works.

      In most places a house will likely be 500k or above. Let’s just say 500k for the sake of argument… it’s a simple number for your simple brain. You’ll have to pay at least 20% up front. That’s 100k in my example. However, that’s quite an unreasonable thing to do in recent years, so I better suggest your downpayment be more than 30%, or 150k in this example. Generally, 40% is s very good downpayment in terms of long term financial security… that’s already 200k. So yes. 200k is what the average person should expect. 20k wouldn’t even get you the land.

      • YoBuckStopsHere@lemmy.world
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        1 year ago

        Oh, now a basic home isn’t good enough for you. Let me guess, it needs a swimming pool, three car garage, and a finished basement, too.

        Yes, $20K down will get you a standard 3 bedroom home. You want to have a McMansion which is unaffordable for 99% of the American public.

        • ccunix@lemmy.world
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          1 year ago

          There comes a point where a basic house is not enough. For example, someone who starts a family and career before buying late.

          By the time I bought my first house I had 2 teenagers, a work from home job (need a dedicated office) and a sick mother-in-law who is dependent on us. Add to that, I am an expat, so I want my sister to be able to come and visit (a nice-to-have I admit). The “starter” home for my family has 5 bedrooms!

        • MucherBucher@feddit.de
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          1 year ago

          20k will not get you a 3 bedroom home. Do you by chance live in West Virginia? Their median home values is under 200k, and even then, 20k won’t get you there. Trust me homeboy, 20k will not get you far, not even in the cheapest of regions.

          The median US house value is 430k. The lowest legal downpayment is 3%, but that’s plain stupid. Financially, anything under 20% makes no sense. Your mortgage will be super high and you’ll have to pay for morgage insurance which you don’t have to do if you do a downpayment above 20%.

          Also, if it’s so cheap and easy to buy a house, why isn’t everyone buying a house right now? The majority of millenials and forward are renting and you’re telling me half a year of rent is enough for them to get a house? Clearly they would have figured that one out by now.

          Just so you understand my living standards. I do not own a car at all. I could financially afford one, but that wouldn’t be a sensible investment.