To all the people with $700,000+ homes (Millstone: mortgage, lawyer, loans)

[pete0428]

What kind of jobs do the people who have these homes do? I know there are many jobs that pay well enough to afford them, but I think it would be interesting to see what people on here actually do to afford these homes. Are you all doctors, lawyers, finance people??

[tahiti]

Originally Posted by pete0428

What kind of jobs do the people who have these homes do? I know there are many jobs that pay well enough to afford them, but I think it would be interesting to see what people on here actually do to afford these homes. Are you all doctors, lawyers, finance people??

i'd say most are those who have moved up the real estate ladder - not first time homebuyers.

[doc1]

If I had to guess, many we're financed with a good chunk of equity from the sale of their previous homes.

Add in a high motgage and both husband and wife having to work, it can be done.

[juliann1977]

My dh is a senior manager at a Big Four accounting firm. He's in their advisory practice. I'm a SAHM.

[KewlGuy]

Originally Posted by pete0428

What kind of jobs do the people who have these homes do? I know there are many jobs that pay well enough to afford them, but I think it would be interesting to see what people on here actually do to afford these homes. Are you all doctors, lawyers, finance people??

My cousin owns a million dollar home in Millstone. Both she and her husband are teachers.

[EEEPNJ]

LOL - great post. Whenever I see that only "McMansions" are being built now I think a) do the morons building them realize the financial situation the country is in right now? and b) how the f do people afford these things! LOL!

[Diane Giam]

Originally Posted by EEEPNJ

LOL - great post. Whenever I see that only "McMansions" are being built now I think a) do the morons building them realize the financial situation the country is in right now? and b) how the f do people afford these things! LOL!

Most of them Can't or are house poor. They don't take fancy vacations and say they can't afford the gas. Even though my husband is a Senior Vice President, I would never take a mortgage that high, or use a great deal of my disposible cash.
The house I bought here was less than I received for the house I sold, and also almost double in size.
I live below my means, cars and college for daughter get paid in cash. I have no debt. My only loan is a low mortgage that I took for a tax deduction.

Diane G

[juliann1977]

Originally Posted by Diane Giam

I would never take a mortgage that high, or use a great deal of my disposible cash.


Diane G

People who buy 700k+ homes are generally not taking out 700k+ mortgages. Certainly not now, given the fall of the housing market. Banks are highly risk averse. (And if someone is borrowing that amount of money on a million or multi-million dollar home, and have been approved to do so in this market, he/she isn't house poor.)

[BobKovacs]

Originally Posted by juliann1977

People who buy 700k+ homes are generally not taking out 700k+ mortgages. Certainly not now, given the fall of the housing market. Banks are highly risk averse. (And if someone is borrowing that amount of money on a million or multi-million dollar home, and have been approved to do so in this market, he/she isn't house poor.)

True, but as recently as a year ago they sure were. Hell, they could get a $700k house with probably $20k down, and then pull a HELOC based on future appreciation. With the ridiculous interest-only ARM loans that were being written, you could have pulled a $700k mortgage for around $3k/month. Those are the folks who are in trouble now......

[tahiti]

Originally Posted by juliann1977

People who buy 700k+ homes are generally not taking out 700k+ mortgages. Certainly not now, given the fall of the housing market. Banks are highly risk averse. (And if someone is borrowing that amount of money on a million or multi-million dollar home, and have been approved to do so in this market, he/she isn't house poor.)

it would be interesting to see a breakdown (in NJ!) of foreclosures -vs- amount of loan. i would venture a guess those who have $700K + mortgages are NOT the majority of loans that have defaulted.