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Do the math and tell us the income you'd need for a $1,000,000 house at prime. It's unreasonable. Pay a loan to term one of these days and you'll see why.
by armatav 3y ago
Do the math and tell us the income you'd need for a $1,000,000 house at prime.
It's unreasonable. Pay a loan to term one of these days and you'll see why.
- thunky 3y agoDon't buy the $1,000,000 house if you think it's too expensive. It's only (over)priced that way because rates were low and prices haven't adjusted to current rates yet.
- TheSpiceIsLife 3y agoI don't think those are the only reasons house prices are high now. Why don't you try telling the whole truth.
- baggy_trough 3y agoHouse prices are high because governments are printing money like mad.
- thunky 3y agoYou're right I shouldn't have said "only", but in my opinion it's the main reason. And of course there are several reasons rates move. When rates were around 3% not so long ago, the monthly payment on a $1M loan was around $4k. Now at current rates the monthly payment is closer to $7k. As a buyer, that's pretty hard to shrug off. It ends up eliminating entire classes of buyers just like it added them when rates were going down.