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What Does It Take to Own a Home? A Clearer Way to Aim at the Future

PAYSON WICK | APRIL 19, 2025

A lot of us are trying to build something that feels like it could last. But when it comes to owning a home, the goalposts keep shifting. Rising interest rates, unpredictable markets, and rapidly changing financial rules have made it hard to know what to aim for—let alone how to hit it.

So this post is about clarity. Not optimism. Not fear. Just a simple, grounded way to think about homeownership. Why it still matters. Why it feels increasingly out of reach. And how to do the math to set a real, functional target for your future.

Why Homeownership Still Matters

This isn’t about status. It’s about autonomy. Owning your home gives you more control over your space, more flexibility to plan long-term, and a way to build equity over time.

For many, it marks the shift from reacting to life to shaping it.

Renting isn’t failure. But if you want to own something—not just financially, but emotionally—you’re not wrong for wanting a roof you can trust to still be yours next year.

Why It Feels So Hard Right Now

You didn’t imagine the difficulty. Home prices have surged. Interest rates have jumped. Wages haven’t kept up. And the rulebook we were raised with no longer applies.

Planning for the future has never felt more abstract.

So if you feel discouraged, you’re not alone. And if you’re ready to stop drifting and start aiming, it begins with one question: What do I actually need to earn to afford the life I want?

The Math: Reverse Engineering a Home Purchase

Let’s say you want to buy a house.

Step 1: Choose a ballpark price. Maybe it’s $350k. Maybe $550k. Maybe $750k.

Step 2: Subtract your down payment. Let’s assume 10% down:

  • $350k home = $35k down, $315k loan

  • $550k home = $55k down, $495k loan

  • $750k home = $75k down, $675k loan

Step 3: Estimate your monthly payment. At a 5.5% interest rate over 30 years, your estimated monthly principal & interest is roughly:

  • $315k loan = $1,788/month

  • $495k loan = $2,812/month

  • $675k loan = $3,836/month

Now add $600–$900/month for taxes and insurance:

  • $315k home = ~$2,500/month total

  • $495k home = ~$3,400/month total

  • $675k home = ~$4,600/month total

Step 4: Divide by 0.28 Lenders typically want your housing payment to be no more than 28% of your gross income.

  • $2,500 ÷ 0.28 = ~$8,930/month = $107,000/year

  • $3,400 ÷ 0.28 = ~$12,140/month = $145,000/year

  • $4,600 ÷ 0.28 = ~$16,430/month = $197,000/year

What This Gives You

Now you have a range. Not a guess. Not a vibe. A target.

Whether you hit it with one job, two partners, a remote gig and a side hustle—it doesn’t matter. The point is: you’re aiming now.

You can work backward. Adjust. Recalculate. But you’re no longer wondering if it’s possible. You’re starting to define how.

The Close: Clarity Is Power

You don’t need a million-dollar strategy. You need a clear number and a steady effort.

In a world where the rules keep shifting, your best move is to stop waiting for permission and start building toward something real.

The future won’t wait until you feel ready.

But it will reward direction.

What’s Next?

This idea is a quiet force in everyday life, shaping our decisions more than we realize.

If you want to explore more hidden dynamics like this, stay tuned—there’s plenty to unpack.