Originally Posted by
NuGuy
The people that moved in next to me paid $75k over what comps showed. Well into the $600s.
Maybe I’m just old fashioned, but that’s a ton of debt to be carrying. Normally, I’d write it off to a wealthy Aunt, hit the lotto, frugal savers, married rich or what have you, but it’s been happening all over our area. People just walking in and financing a $600-700k house. A new development nearby with that price range was completely sold out in about six months.
A handful of people I could see, but it’s like everyone can swing a 600k note these days.
P&I on 600K is $2,293 for a 30 year loan at 2.25%. Just a few years ago at the historically low rate of 4%, the payment was $2291.59 on a 480K loan. At 5.5% (2009-2009 rates) that payment would equate to a 400K mortgage. People buy houses on monthly payment more than purchase price. Buyers are skipping the middle home and going from the starter home straight to the forever home.
Inflation will wipe out much of the debt, might as well go big.