[rjp0008]

I think you're vastly over estimating property taxes. Texas is less than 2% on average assessed on home value. I'd be curious about your example of what "most mortgages" payment breakdown looks like, like year 5 in texas on a 300k house putting 5% down and a 5% interest rate. Look at principle, interest, property taxes, and avg insurance payment.

[giantg2]

"I think you're vastly over estimating property taxes."

You're implying that this needs to be the biggest monthly cost, which I don't agree with. Eventually you will pay off your mortgage, leaving you with just property tax and (technically optional at that point) insurance. The duration of payment matters. I will end up paying more in property taxes in my life than I will in interest - 20 years below 4% vs 50+ years of paying 2+%.

2% on even a $200k house is $333/month. That's a lot for low income people. The principal and interest on $180k is about $960/mo on a 5% 30yr. So he property tax is 25% of the payment.

So instead of me overestimating property tax, I feel that you are underestimating how much that money is worth to low income people.

[rjp0008]

You're moving the goalpost now.

Here's a 200k house: https://www.zillow.com/homedetails/1404-36th-St-N-Birmingham...

Here's how much they pay in property taxes ($1270): https://eringcapture.jccal.org/parceldetail/23%2000%2019%203...

30 year loan at 4% (not feasible today) means 115k in interest paid after putting 20% down. It would take way longer than 50 years to pay more in property taxes than interest.

[giantg2]

Nothing moved. You gave me the 2% property tax from TX. The other person gave me the dorm in Atlanta. I gave you a real example where I will pay more in property tax than I will in interest. Property tax varies from state to state and won't be the same everywhere. I'm not sure why you're using yet another state, Alabama, for your example except to just cherry pick. But we're getting off track - $1200/yr perpetually is a lot of money for low income people.