Mortgages in Seattle Area (Bellevue, Kent: insurance, condo, mortgage)

[Stonepa]

Hi All. We are in the process of relocating to Seattle from the Midwest. As expected, our $350k, 3500 sq foot house on a 1/2 acre 30 minutes from work is not going to be replicated in the Seattle area so we are looking in the $450-500k range for 2500 sq ft in the Issaquah area. For where I live now, well, you know the rest but $500k is more than anyone I have ever met here has spent on a house and we all of six figure + incomes. My question is this. Out east we have 30 year mortgages at the max. I know from a friend who rents in LA that they have 60 year mortgages. Is something like that available in the Seattle area? How does even an upper middle class family afford to live in King County? Mortgage+insurance+taxes just seems outrageous from my perspective.

OK - enough whining. Thoughts?

[homesinseattle]

See end of post for an interesting article addressing a "longer that 30 year" mortgage term. I think you will find payments quite reasonable on a 30 year, especially as interest rates are near historic lows. Where are you going to be working? Certainly getting out of the really "hot" areas will help. For $450-$500K (better close to $500), you should be able to find a house in a good school district, perhaps a little smaller in size. Issaquah would be tough to find that combination of price and square footage. Northshore Schools in Bothell comes to mind, more affordable homes than Issaquah, good schools, decent access to Seattle and the Eastside without crossing bridges. There may be other options as well, depending what kind of commute you are open to. Is the 40-year mortgage a joke?

[Stonepa]

The office is in downtown Seattle but I will most likely be working onsite in Issaquah, Bellevue, and Kent.

[homesinseattle]

Welcome Stonepa (almost) to town! Where are you living now? I just ran a search in Issaquah and Sammamish (closeby). There would be just a few options for a home of that size (maybe a little smaller in square footage), homes that were built in the 70s and 80s and maybe need a little cosmetic work. They also sell very quickly (and often get bid up) in that price range, in fact most price ranges. Have you considered that Bothell area (Northshore School District)? You would certainly also get more for your money if you headed farther east toward Snoqualmie or North Bend, or farther south toward Renton. In both cases though, schools aren't as highly rated, if that is a factor for you. Hope you found that mortgage link interesting. You should chat with a local lender out here for more details.

[mkarch]

Originally Posted by Stonepa

How does even an upper middle class family afford to live in King County? Mortgage+insurance+taxes just seems outrageous from my perspective.

OK - enough whining. Thoughts?

Cash?

[flyingsaucermom]

Originally Posted by Stonepa

Hi All. We are in the process of relocating to Seattle from the Midwest. As expected, our $350k, 3500 sq foot house on a 1/2 acre 30 minutes from work is not going to be replicated in the Seattle area so we are looking in the $450-500k range for 2500 sq ft in the Issaquah area. For where I live now, well, you know the rest but $500k is more than anyone I have ever met here has spent on a house and we all of six figure + incomes. My question is this. Out east we have 30 year mortgages at the max. I know from a friend who rents in LA that they have 60 year mortgages. Is something like that available in the Seattle area? How does even an upper middle class family afford to live in King County? Mortgage+insurance+taxes just seems outrageous from my perspective.

OK - enough whining. Thoughts?

We moved from the mid-west. We had a $150k home on a $75k salary. We bought a $350k condo on a $180k-ish salary in Issaquah in 2012. An identical condo to ours just sold for $487k.

So a few things...

1) My first thought is that if you are a 6 figure + salary you probably shouldn't have a problem holding a 30 year mortgage. Of course, that depends on a few things... is that "six figure +" salary mean $100k or $250k? Is your downpayment going to be 10% or 30%?

2) If an identical unit to our 1860 sq ft condo just sold for $487k, how do you know you'll be able to buy a 2500 sq ft home for under $500k?

[Stonepa]

$300k salary here, although the Seattle job trades flexibility and lifestyle for a significantly lower salary. No current debt other than mortgage debt. We'd probably put down 30-40% on a house in Seattle.

Woodinville, North Bend, Mount Vernon, Redmond, etc all have houses in the price range but whether or not they are available long enough to buy is another question. Issaquah would be perfect but may not happen on our timeframe.

I probably just need to realign my view on what we consider a high end house price out here.

[Boxkicker]

I bought in 2011 in Maple Valley for 4BR/3BA/2040SF house for $350K. I put $0 down using my VA loan @ 4.750%.

I refinanced in 2012 for 3.375% with no appraisal using VA streamline.

Zillow (take it for what is is worth) has it estimated @ $392K. I have seen other sites have it estimated @ $409K.

My household income is $110K.

I commute to downtown Seattle via public transportation and I don't mind it one bit since my kids graduated from a great school district and it is quiet here.

More and more the price of housing is getting squeezed the shorter the commute.

[Stonepa]

Thanks Boxkicker. We will take a look. I prefer public transportation if possible for just the relaxation vs driving.

BTW - what is considered a short commute? 10 minutes, 30 minutes, 1 hr? Even 1 hr each way doesn't sound unreasonable for a realistic house price and good schools.

[mike62pp3]

Originally Posted by Stonepa

Thanks Boxkicker. We will take a look. I prefer public transportation if possible for just the relaxation vs driving.

BTW - what is considered a short commute? 10 minutes, 30 minutes, 1 hr? Even 1 hr each way doesn't sound unreasonable for a realistic house price and good schools.

1hr of stop-and-go traffic will easily make it the worst commute. Generally anything under 30min is a short commute, 30-60min is average, more than an hour is high.