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That's not what it implies. The article is just talking about the price of housing in Seattle. The journalist was comparing the cost of the home the family boug
by mruts 7y ago
That's not what it implies. The article is just talking about the price of housing in Seattle. The journalist was comparing the cost of the home the family bought, with a theoretical similar house in the city.
Moreover, almost everyone is highly leveraged when "buying" a home. Hell, I my wife and I could swing a 1.5m mortgage if we really wanted to. According to mortgage calculator, a 1.5m house would take 60k down-payment and 1.5k/month[1]. That's very reasonable for a large portion of the population.
I've paid triple that amount in rent for apartments.
[1]: 30-year, 60k realtor cut, 4.2% fixed rate, $2400 property taxes/year, average credit
Edit: Yeah I think the calculator is giving wrong results. There's no way that's possible.
- apohn 7y ago>According to mortgage calculator, a 1.5m house would take 60k down-payment and 1.5k/month[1]. Did you miss a zero somewhere or did the calculator have a bug? There's no way 60K down and 1.5k/month is correct. It's much higher than that for a $1.5M home.
- nwah1 7y agoFannie Mae's "jumbo loan" policy means you have to pay huge money down and also prove that you have enough in the bank to fund like 6 months of payments.
- coolaliasbro 7y agoI was about to say the same thing. I put $33k down and financed $208k at around 3.5% (in the Upper Midwest). Three years on my payments are about $1280, after increased taxes YOY.
- deleted 7y ago[deleted]
- moocow01 7y agoYour mortgage payment with 60k down on 1.5m would be about 10k per month