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The down payment is a function of the sale price, and that makes housing completely unthinkable to a lot of people in high price areas. They could afford the pa
by api 7y ago
The down payment is a function of the sale price, and that makes housing completely unthinkable to a lot of people in high price areas. They could afford the payment. Sometimes the payment would be lower than rent.
Going under 20% down results in poor loan terms and extra expenses like mortgage insurance that ruin the economics.
So high sticker prices on homes really do make them unaffordable to first time buyers who don't have family help or a very high income.
- autokad 7y agomortgage insurance does suck, but it didn't ruin the economics for me, but I was lucky. When I bought with an FHA, if you got down to 20% by year 5, you could get rid of MIP. Now the rules are stupid, you are stuck with mortgage insurance for the life of the loan regardless, unless refi. That's just wrong