3 ms·

If one was inclined to get a 30 year fixed mortgage (sounds insane, but people do that), $850/mo will get you a house in Cottonwood Heights, not a bad neighborh

If one was inclined to get a 30 year fixed mortgage (sounds insane, but people do that), $850/mo will get you a house in Cottonwood Heights, not a bad neighborhood at all. [insert some kind of subjective disclaimer about what living in a “nice” ‘hood in a place like that is worth here]

crmrc114 6y ago
Where are you from where a 30yr fixed is abnormal? Everyone I know in Texas, Oklahoma, Arkansas or Missouri uses 30yr fixed with no prepay penalty. Then you can just toss whatever you want in over the top and pay down your premium when times are good. Then if things get rough you can just slide back to the minimum monthly payment. (Also, fixed interest is like below 3% right now.)
tw04 6y ago
What’s insane about a 30-year fixed mortgage? That’s literally the most common term for a mortgage in the US and I’m willing to bet many other western nations.
avmich 6y ago
I've checked prices on Zillow for Cottonwood Heights, UT; looks like the lower range is at least $400k, which makes monthly payments above $1900, after 20% downpayment.
- dehrmann 6y ago
  That's similar to Modesto prices. Comps might be 25% different, but my point is it's not a SF/Peninsula $2M starter home.
  - avmich 6y ago
    I agree it should be substantially cheaper. It's just not that hypertrophic difference. Also on Peninsula one can still find houses under 1.5M, judging by San Jose median of less than 1.1M.
    - bradlys 6y ago
      You can find them - but you certainly wouldn't want to live in them. Most homes below $1.5mil in the peninsula have some serious compromises (especially if you are trying to get a home that is above 1200sqft). You're going to have to take a hard hit on the schools and - well - then you're just going to pay for private schools then. What would you rather do? Spend $5,000/month for your two kids to go to some private school or put that $5,000/month into your mortgage instead? San Jose != Peninsula btw.
defen 6y ago
I’m paying 2.5% on a 30 year fixed mortgage with no prepayment penalty. Genuinely curious what about that is insane - just the length? Because it sounds like almost-free money to me.
- Eric_WVGG 6y ago
  I guess I just have a personal aversion to debt. I would never have guessed this was normal! Well, fair enough, and according to another reply here the mortgage calculator I used was inaccurate. I still feel confident that an $850/mo mortgage is feasible in SLC. Surprised that I’m getting more flack here for my feelings about debt than the subtle shade I threw the region :)
  - spiffytech 6y ago
    Avoiding debt is very laudable, but home ownership is the place where even avid debt-haters like Dave Ramsey admit a loan is the only way most folks can do it. Nearly everyone who owns a home does it with a mortgage, usually 15/30 years. Fixed rate seems out of fashion these days, but it's far from dead.
  - defen 6y ago
    > I guess I just have a personal aversion to debt. I would never have guessed this was normal! Where do you draw the line? If someone offered you a 30 year loan at 0% interest, you'd take it, right?
    - Yetanfou 6y ago
      Not necessarily, it depends on what the money is meant for. A loan is still a loan, no matter whether interest is charged or not. It creates a liability which can have dire consequences if the conditions are not met. I only ever took out one loan, a partial mortgage for a house I bought in the Netherlands. I sold that house 6 years later for close to double the price, paid off the loan, bought a farm in Sweden cash in hand for the proceedings and never looked back. I never took out a study loan - living cheaply on a farm (I studied at an agricultural university) so I skipped that burden as well. No loan means no liability, clear and simple. I will not take out personal loans, instead I'll postpone the purchase until I can afford it out of hand.

crmrc114 6y ago

Where are you from where a 30yr fixed is abnormal? Everyone I know in Texas, Oklahoma, Arkansas or Missouri uses 30yr fixed with no prepay penalty. Then you can just toss whatever you want in over the top and pay down your premium when times are good. Then if things get rough you can just slide back to the minimum monthly payment. (Also, fixed interest is like below 3% right now.)

tw04 6y ago

What’s insane about a 30-year fixed mortgage? That’s literally the most common term for a mortgage in the US and I’m willing to bet many other western nations.

avmich 6y ago

I've checked prices on Zillow for Cottonwood Heights, UT; looks like the lower range is at least $400k, which makes monthly payments above $1900, after 20% downpayment.

dehrmann 6y ago
That's similar to Modesto prices. Comps might be 25% different, but my point is it's not a SF/Peninsula $2M starter home.
- avmich 6y ago
  I agree it should be substantially cheaper. It's just not that hypertrophic difference. Also on Peninsula one can still find houses under 1.5M, judging by San Jose median of less than 1.1M.
  - bradlys 6y ago
    You can find them - but you certainly wouldn't want to live in them. Most homes below $1.5mil in the peninsula have some serious compromises (especially if you are trying to get a home that is above 1200sqft). You're going to have to take a hard hit on the schools and - well - then you're just going to pay for private schools then. What would you rather do? Spend $5,000/month for your two kids to go to some private school or put that $5,000/month into your mortgage instead? San Jose != Peninsula btw.

defen 6y ago

I’m paying 2.5% on a 30 year fixed mortgage with no prepayment penalty. Genuinely curious what about that is insane - just the length? Because it sounds like almost-free money to me.

Eric_WVGG 6y ago
I guess I just have a personal aversion to debt. I would never have guessed this was normal! Well, fair enough, and according to another reply here the mortgage calculator I used was inaccurate. I still feel confident that an $850/mo mortgage is feasible in SLC. Surprised that I’m getting more flack here for my feelings about debt than the subtle shade I threw the region :)
- spiffytech 6y ago
  Avoiding debt is very laudable, but home ownership is the place where even avid debt-haters like Dave Ramsey admit a loan is the only way most folks can do it. Nearly everyone who owns a home does it with a mortgage, usually 15/30 years. Fixed rate seems out of fashion these days, but it's far from dead.
- defen 6y ago
  > I guess I just have a personal aversion to debt. I would never have guessed this was normal! Where do you draw the line? If someone offered you a 30 year loan at 0% interest, you'd take it, right?
  - Yetanfou 6y ago
    Not necessarily, it depends on what the money is meant for. A loan is still a loan, no matter whether interest is charged or not. It creates a liability which can have dire consequences if the conditions are not met. I only ever took out one loan, a partial mortgage for a house I bought in the Netherlands. I sold that house 6 years later for close to double the price, paid off the loan, bought a farm in Sweden cash in hand for the proceedings and never looked back. I never took out a study loan - living cheaply on a farm (I studied at an agricultural university) so I skipped that burden as well. No loan means no liability, clear and simple. I will not take out personal loans, instead I'll postpone the purchase until I can afford it out of hand.