74% of my home costs go to non-home based expenses.
Also, please note that property taxes in my home state of Texas are some of the highest in the nation. Even then, I'm shelling out a good $300/mo on insurance.
Which means the monthly cost of home ownership in an ostensibly low-cost-of-living state is:
-
$609 - The Bank
-
$504 - The House amortized over 30 years
-
$470 - The state of Texas / city of Houston
-
$307 - Insurance Company
And please note that this is fucking cheap for my area. $1900/mo was a steal when I nailed it down back in 2018. But the $500/mo that actually goes to the actual house would have been even better. One might even argue it is the real material cost of living. Maybe add in another $400 or so if you squint and don't ask how much is just going to Cops, Cops, and More Cops or inquire too hard about the state of our streets or schools.
But every time I pay my note, I'm forced to reconcile with this and think about all the people who are told they've been "priced out".
Did you have to get mortgage insurance? That shit sucks, a tax for being poor. It pays insurance towards the bank in case you default on your loan, it ensures the bank still gets paid if you stop paying. Literally paying twice
That's not mortgage insurance. That's just what happens when your city eats hurricanes regularly.