$600,000 house financed with a conforming-jumbo at 6.375%, 20% down, 1.1% property tax rate.
Interest: $2550
Insurance: let’s say $50
Property tax: $550
You could have kept your $120,000 down payment, but stock market sucks, and, with interest rates as low as they are, CDs and savings accounts don’t yield much more than 3%. You could have been getting $300/month in interest and paying a third of that amount in taxes. Your total downpayment opportunity loss is $197/month.
By owning, you’ll be enjoying tax savings; they depend on your specific situation, but we can estimate that you’ll be saving (25% + 9.3%) of interest + property tax or $1063/month.
It costs you 2550 + 50 + 550 + 200 – 1063 = $2300/month to own that house.
$600,000 goes a long way in San Diego. You can buy this
