how people able to afford 400 - 600k homes? (Denver: houses, buying)

[AmFest]

Originally Posted by Timmyy

https://www.wellsfargo.com/mortgage/...age-insurance/

That's not what he meant.

Originally Posted by AmFest

Did you mean the option to pay higher interest rates instead of paying PMI?

Originally Posted by drshang

No.

[drshang]

Originally Posted by mic111

I wasn't trying to nitpick I was trying to lower my insurance cost. I think it is $1600/yr without earthquake protection and $2000/yr with so I'm out of luck because you are posting rates from other states. State Farm loves us so much they are currently replacing our hail damaged roof and skylights.

The intent of my numbers was just to numerically explain how someone could afford a house of a certain amount using actual data and explain that in terms of how a bank looks at the problem. The insurance amount was just a broad, basic assumption for which number to plug in. Taxes and insurance are just property dependent stats - they would need to be updated to reflect any specific property. The number was not intended to be any kind of barometer for what a specific pre-existing homeowner should pay in taxes or insurance.

Houses here tend to have low insurance rates because the land value is overwhelmingly high relative to the value of the structure. If you own a 600k house in a very suburban Denver area with a 500k replacement cost and the land is worth, say, 150k, you will pay a much higher insurance rate than if you own an inner city bungalow with a 200k replacement cost and a 450k land value.

[AmFest]

Originally Posted by denverian

Makes you wonder how people afford more than a kid or two. We have two, and they're expensive! But then I'm making it a point to save for their college so they don't have to go through what I did to pay for it.

A friend of mine has 4 kids, and another one has 6. They are doing fine.

A lot of Mormon families have a lot of kids. They've got it figured out. Among those that I know, the father works hard and smart while the mother stays at home. Definitely feasible.

[AmFest]

Originally Posted by drshang

The intent of my numbers was just to numerically explain how someone could afford a house of a certain amount using actual data and explain that in terms of how a bank looks at the problem. The insurance amount was just a broad, basic assumption for which number to plug in. Taxes and insurance are just property dependent stats - they would need to be updated to reflect any specific property. The number was not intended to be any kind of barometer for what a specific pre-existing homeowner should pay in taxes or insurance.

Houses here tend to have low insurance rates because the land value is overwhelmingly high relative to the value of the structure. If you own a 600k house in a very suburban Denver area with a 500k replacement cost and the land is worth, say, 150k, you will pay a much higher insurance rate than if you own an inner city bungalow with a 200k replacement cost and a 450k land value.

Interesting.

I guess that makes up partially for the relatively high property taxes in Washington State.

[AmFest]

Originally Posted by drshang

Google, "wells fargo 10% down zillow" and you will see plenty of hits. From wells and other banks. This site is notorious about deleting links to other sites. I don't know what the product is called but there are plenty of lenders on sites like zillow and trulia that can probably refer you to various options.

That's very help. Thanks for sharing!

So far I've found only 10% down for jumbo loans, which I guess would apply to a 600k house.

[davebarnes]

Originally Posted by AmFest

Where in Denver is property tax 1.25%?

Stapleton
Reunion

[drshang]

Originally Posted by AmFest

That's very help. Thanks for sharing!

So far I've found only 10% down for jumbo loans, which I guess would apply to a 600k house.

At lower price points there are different sets of options that are often government supported. So those will vary more based on your state and municipality, and sometimes profession. Often there are more options than people realize from looking at web sites. I realize sales people generally suck to deal with but it can be useful to reach out to a mortgage person, especially since mortgage standards have softened in the last 2-3 years.

[emm74]

Originally Posted by Colorado^

Whatever happened to living within your means? Or better still, well below your means so you can grow your wealth?

Maybe growing their wealth is not everyone's goal in life? I put money into retirement, I put money into savings. And I live in a house that I feel I can comfortably afford. However, I could have easily bought something for less money, although not too realistically in my location (Stapleton).

I put a value on my location and in particular, the excellent public schools that made it worth it to me to spend more money for a better quality of life now, rather than to live in a manner and place that is less desirable to me in order to "grow wealth." Some people are only focused on now, some people are (IMO) obsessed with the future and retirement at the cost of their current lifestyle. I tried to find a balance that works for me.

[Colorado^]

Originally Posted by Timmyy

'merica!

Which is such a joke.... America is one of the cheapest places to live. You don't need to spend much to have a great house/car/lifestyle.

[Indigo Cardinal]

*shrug* All kinds of ways, really.

Myself, I don't make six figures, and some were surprised at the price tag on the house that I'm in the process of buying (it's less than $300K, but most of my family are in areas of the country where housing is cheaper, so to them, the price I'm paying is huge), until you consider:

1.) I've been in my current house for 15 years--so a lot of equity built up.

2.) I sold said house for $50K more than what I paid for it.

3.) I got a 3.75 rate and a VA loan.

4.) I don't have a lot of debt.


My mortgage is going to go up, no doubt, but it falls well within my budget.