Mortgage on $1-2 million homes?

[aneftp]

Originally Posted by EngGirl

I know some people in CA who bought their houses (over million $) on the terms "interest only" mortgage. The only thing is they are planning to sell it, not live there forever.

Well that's another discussion in itself. They are just "maximizing" their tax deductions cause they don't want to tie up more money by paying into the principal (considered dead money since you can't use it). They are planning on selling anyways in a few years.

But like I said interest only large loans are another topic in itself.

[EngGirl]

Originally Posted by aneftp

Well that's another discussion in itself. They are just "maximizing" their tax deductions cause they don't want to tie up more money by paying into the principal (considered dead money since you can't use it). They are planning on selling anyways in a few years.

But like I said interest only large loans are another topic in itself.

I agree with you. My answer for to the question who and how can afford million $ houses...

[tigerprint456]

Lots of people afford million dollar homes because they have to (close work proximity or living in high cost of living city like nyc, SF, LA, Boston, London, etc). I think it is doable, especially if you are working with double income. Like someone else said above interest rates are not 6% plus anymore so the monthly mortgage payment would be lower than 8K and if you put more than 20% down it will be even lower. Although I am not from the DC area I personally would not want the house in the link. A 1.65 million dollar row house with only 2,500 sq ft, no driveway, and a hundred steps to get to it certainly would not be my type of house. I would be concerned if the house will maintain its resale value. If I worked in DC and wanted to spend that much on a house I would live in a nice mini mansion in Arlington, VA, Alexandria, VA, Bethesda, MD, or Chevy Chase, MD close to the metro line.