"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.
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.