My salary didn’t change at all, but homes went up 82%. The money I saved for a down payment and my salary no longer are good enough for this home and many others. This ain’t even a “good” home either. It was a 200k meh average ok home before. Now it’s simply unaffordable

  • jj4211@lemmy.world
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    2 个月前

    This presumes you can elect to either just spend the 100k now, that you may not have.

    If you declare you want 100k, but let’s say that would take you 10 years (and the goalposts wil move). That’s likely 120 months of rent you will have to pay, so while you’ll end up saving on interest, you’ll more than lose out on rent.

    Paying down aggressively and going with as big a down payment as you can reasonably afford makes sense. However waiting to save up for that downpayment may cost more in rental expenses than you’d save.

    • Saik0@lemmy.saik0.com
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      2 个月前

      Good thing what I actually said was

      Paying anything you can up front saves you several times over in the long run.

      My point was that the advice was terrible. Not that there are other circumstances that could make it useful. Overall, as a general rule you shouldn’t want to just hold onto debt for no reason if you have means to pay it down. It’s also why I specifically showed 10% as well rather than just the typical 20% downpayment, it furthers my point that

      you’re so much better off if you put as much into the down payment as you can.

      “As much […] as you can” And not just some 20% or whatever magic number.