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Old 06-15-2023, 11:16 AM
 
15,796 posts, read 20,499,262 times
Reputation: 20974

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Quote:
Originally Posted by newenglandgal123 View Post
They put 20% down, have a $720K mortgage. Guess they'll be ok if the market dips a little.
Jumping off with this comment.

I plugged 20% down on a $1mil house ($10K property tax, $2K insurance, no PMI) into a calculator with 6.7% interest rate and get a mortgage of around $6K/month.

What's the HHI in order to support that mortgage?

Is there any sort of data published that would break down average and median mortgages on homes taken out in the last 2-3 years? Prob not but i'm curious what the "new norm" is for an "average" metro Boston home.

There's a few new apartments going up nearby and rents are in the $3.5k and up range for 1 and 2 BR units. It's just shocking to see the cost of rents and mortgages shooting up so much.
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Old 06-15-2023, 12:26 PM
 
1,540 posts, read 1,125,040 times
Reputation: 734
Quote:
Originally Posted by BostonMike7 View Post
Jumping off with this comment.

I plugged 20% down on a $1mil house ($10K property tax, $2K insurance, no PMI) into a calculator with 6.7% interest rate and get a mortgage of around $6K/month.

What's the HHI in order to support that mortgage?

Is there any sort of data published that would break down average and median mortgages on homes taken out in the last 2-3 years? Prob not but i'm curious what the "new norm" is for an "average" metro Boston home.

There's a few new apartments going up nearby and rents are in the $3.5k and up range for 1 and 2 BR units. It's just shocking to see the cost of rents and mortgages shooting up so much.
I'd add in ~$1k/month to PITI for home maintenance. ~30% gross income on housing costs is a nice spot where one doesn't feel choked by housing...which would translate to about $280k HHI.

Of course many people go much higher than that...I think banks allow up to 43% DTI for PITI only which would make life pretty miserable until they can increase their income.
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Old 06-15-2023, 02:41 PM
 
3,620 posts, read 1,840,863 times
Reputation: 1508
Quote:
Originally Posted by BostonMike7 View Post
Jumping off with this comment.

I plugged 20% down on a $1mil house ($10K property tax, $2K insurance, no PMI) into a calculator with 6.7% interest rate and get a mortgage of around $6K/month.

What's the HHI in order to support that mortgage?

Is there any sort of data published that would break down average and median mortgages on homes taken out in the last 2-3 years? Prob not but i'm curious what the "new norm" is for an "average" metro Boston home.

There's a few new apartments going up nearby and rents are in the $3.5k and up range for 1 and 2 BR units. It's just shocking to see the cost of rents and mortgages shooting up so much.
I know, I have a hard time understanding how so many seem to be doing it at these prices and rates when incomes aren't necessarily keeping up. Sure, some folks make $300K+/year but that's not the norm. Lot of them might be stretching themselves thin. Problem is if they have buyer's remorse in a year, home prices may have dipped a little by then and if they didn't put a good chunk down, they may take a loss if they try and sell.
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Old 06-15-2023, 02:50 PM
 
Location: Camberville
15,861 posts, read 21,441,250 times
Reputation: 28199
Quote:
Originally Posted by BostonMike7 View Post
Jumping off with this comment.

I plugged 20% down on a $1mil house ($10K property tax, $2K insurance, no PMI) into a calculator with 6.7% interest rate and get a mortgage of around $6K/month.

What's the HHI in order to support that mortgage?

Is there any sort of data published that would break down average and median mortgages on homes taken out in the last 2-3 years? Prob not but i'm curious what the "new norm" is for an "average" metro Boston home.

There's a few new apartments going up nearby and rents are in the $3.5k and up range for 1 and 2 BR units. It's just shocking to see the cost of rents and mortgages shooting up so much.
We're in a kind of wild situation where just PITI right now is *so* much higher than rent, but rent itself is out of control because of lack of inventory. It doesn't help that all of the corporate landlords use the same software to "optimize" rent offerings, which means they just bump each other up. Sure, there might be some FOMO involved with buying, but some of it is stretching because at least your mortgage will stay relatively the same while rent goes up $200-300 a month a year.

My new apartment is lovely, but still a fairly small 2 bedroom with the tiniest bathroom I've ever seen. I was one of 75 people to inquire within 24 hours of the apartment posting and one of 5 to be offered a tour - and I did crazy things like research the landlord and real estate agent to try to get a better shot at getting the apartment. It feels like a steal at $3000 a month (plus a month each for security and broker's fee - throw in movers and it was close to $10,000 just to move in) because of what else I was seeing in the market. Meanwhile, a 1 bedroom in a 4 condo home across the street sold for $550K last year. Even at 20% down they are likely paying more than I pay to rent with condo fees... to say nothing of maintenance costs!

It's just such a frustrating situation. Never in a million years did I think I would be 35 and still renting.
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Old 06-15-2023, 03:00 PM
 
3,620 posts, read 1,840,863 times
Reputation: 1508
Quote:
Originally Posted by charolastra00 View Post
We're in a kind of wild situation where just PITI right now is *so* much higher than rent, but rent itself is out of control because of lack of inventory. It doesn't help that all of the corporate landlords use the same software to "optimize" rent offerings, which means they just bump each other up. Sure, there might be some FOMO involved with buying, but some of it is stretching because at least your mortgage will stay relatively the same while rent goes up $200-300 a month a year.

My new apartment is lovely, but still a fairly small 2 bedroom with the tiniest bathroom I've ever seen. I was one of 75 people to inquire within 24 hours of the apartment posting and one of 5 to be offered a tour - and I did crazy things like research the landlord and real estate agent to try to get a better shot at getting the apartment. It feels like a steal at $3000 a month (plus a month each for security and broker's fee - throw in movers and it was close to $10,000 just to move in) because of what else I was seeing in the market. Meanwhile, a 1 bedroom in a 4 condo home across the street sold for $550K last year. Even at 20% down they are likely paying more than I pay to rent with condo fees... to say nothing of maintenance costs!

It's just such a frustrating situation. Never in a million years did I think I would be 35 and still renting.
I'd love to buy a different house in a new location w/better neighbors (who mow their lawn . However, the more I hear about what folks are paying right now for rents and mortgages I'll keep my current scenario awhile longer. I'm at less than $1400/month. Low overhead is the best but I can guarantee I won't have anything this low ever again for housing costs if I move unless I somehow become a cash buyer next go around.
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Old 06-15-2023, 03:52 PM
r_p
 
230 posts, read 221,768 times
Reputation: 194
Quote:
Originally Posted by BostonMike7 View Post
Jumping off with this comment.

I plugged 20% down on a $1mil house ($10K property tax, $2K insurance, no PMI) into a calculator with 6.7% interest rate and get a mortgage of around $6K/month.

What's the HHI in order to support that mortgage?

Is there any sort of data published that would break down average and median mortgages on homes taken out in the last 2-3 years? Prob not but i'm curious what the "new norm" is for an "average" metro Boston home.

There's a few new apartments going up nearby and rents are in the $3.5k and up range for 1 and 2 BR units. It's just shocking to see the cost of rents and mortgages shooting up so much.
People who are up/downgrading can put down a lot more than 20% as they very likely have enough equity in their existing house.
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Old 06-15-2023, 05:32 PM
 
2,710 posts, read 1,732,864 times
Reputation: 1319
Quote:
Originally Posted by r_p View Post
People who are up/downgrading can put down a lot more than 20% as they very likely have enough equity in their existing house.
Yep this has been mentioned several times too. Someone buys a house for 300k in 2010. They sell today for 700k and they can easily afford a 1mil home. Or they invested in stocks/crypto for several years. For some reason people in this thread think buyers have no other equity or assets before making a home purchase.
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Old 06-15-2023, 07:37 PM
 
3,620 posts, read 1,840,863 times
Reputation: 1508
Since when did Beverly become so expensive? $132K over list for a little ~900 sq ft condo at a $732K sales price! Buyer did put $200K down/which is more than 20% but still....


https://www.zillow.com/homedetails/3...57687234_zpid/
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Old 06-16-2023, 06:57 AM
 
9,880 posts, read 7,209,711 times
Reputation: 11472
Beverly has never been a bargain. Yes there are some low priced homes downtown but near the water or in Pride's Crossing are very pricey.
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Old 06-16-2023, 07:00 AM
 
2,710 posts, read 1,732,864 times
Reputation: 1319
Quote:
Originally Posted by newenglandgal123 View Post
Since when did Beverly become so expensive? $132K over list for a little ~900 sq ft condo at a $732K sales price! Buyer did put $200K down/which is more than 20% but still....


https://www.zillow.com/homedetails/3...57687234_zpid/
How much are similar homes selling for? Is 732k the going price? Then list price doesn't matter. I guess it's more fun to say "this sold for this much over list so expensive!".
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