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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
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Quote:
Originally Posted by Coloradomom22
400k is reasonable for many two-income households. And most go with 30 years regardless of age.You can always make extra payments, refinance, or pay off early if you want. Rents in many areas like mine are insane so locking in a fixed rate mortgage is very attractive.
It's illegal for lenders to discriminate on the basis of age. My parents bought a home while already retired, in their mid 70s, with a 30 year fixed. They would have to live to about age 105 to pay it off. No one worries about that, as long as there is any down payment there will be equity if the estate doesn't pay it off and it gets foreclosed after the death of the owner.
Just a general question but I often watch shows like House Hunters, My First Home and Property Virgins and the buyers had budgets of $400k and up.
I always wonder how do people (in general) afford such high price homes and where do they get the down payment money?
Is it equity from a previous home? Savings? Inheritances? Are these people just highly paid? Cashing out 401K?
How do people do it? Can anyone share some experiences?
I paid $620K for my house. I put 20% down from the proceeds of my previous house. When I purchased it 11 years ago, I made less than 1/2 of what I do now (I'm a single income household) and the payments ($3,200 with taxes/insurance) have never been a problem.
My bills are so low I can save over 50 grand a year. But I have gained the cheap skate label doing that but its nice having no debt. You have to drink cheap light beer and make your own food.
Just a general question but I often watch shows like House Hunters, My First Home and Property Virgins and the buyers had budgets of $400k and up.
I always wonder how do people (in general) afford such high price homes and where do they get the down payment money?
Is it equity from a previous home? Savings? Inheritances? Are these people just highly paid? Cashing out 401K?
How do people do it? Can anyone share some experiences?
its incredible when you think about it. i was talking with someone the other day who works in a really upscale area and we were discussing 'how do people afford these million dollar or more homes' and we looked at each other like "they gotta be breaking SOME laws' not everyone is a brain surgeon or nba player.
we both were stumped, we couldn't figure out how people afforded it, rows of houses all worth millions each, and someone owns them all....just makes you wonder, ya know?
its incredible when you think about it. i was talking with someone the other day who works in a really upscale area and we were discussing 'how do people afford these million dollar or more homes' and we looked at each other like "they gotta be breaking SOME laws' not everyone is a brain surgeon or nba player.
we both were stumped, we couldn't figure out how people afforded it, rows of houses all worth millions each, and someone owns them all....just makes you wonder, ya know?
Sometimes people are not cognizant that there are 300 million people in this country. 1% of 300 million is 3 million mega rich. There's a lot of people who can afford a million dollar home.
In reality, the top 5% can theoretically afford a million dollar home, so that's 15 million people who can buy those. 15 million is almost the entire population of Netherland - bottom line, there's a lot of rich people in this country, enough rich people to themselves fill their own country.
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