Would you take a $950k mortgage on 300k salary?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
My God $950k mortgage!! Can you find a cheaper house?


When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.


I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.


Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.


I would agree with this. If we had not bought our house a few years ago when interest rates were lower we would not be able to afford it now.

This is what should make you nervous.

Why should they be nervous? They have a permanently locked-in low rate.

Because if they have to sell no one else like them can afford to buy it - and the price likely has to go down.

But plenty of other people will be able to afford it, duh.

[Anonymous]

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
My God $950k mortgage!! Can you find a cheaper house?


When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.


I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.


Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.


I would agree with this. If we had not bought our house a few years ago when interest rates were lower we would not be able to afford it now.


This is what should make you nervous.

Why should they be nervous? They have a permanently locked-in low rate.


Because if they have to sell no one else like them can afford to buy it - and the price likely has to go down.

But plenty of other people will be able to afford it, duh.

There are a finite number of people who are looking to buy at any given time. And most of them know when it's a buyer's market and will proceed as such. Nobody wants to overpay for a house. Basic economics.
report

[Anonymous]

Higher priced houses are always harder to sell.

[Anonymous]

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
My God $950k mortgage!! Can you find a cheaper house?


When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.


I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.


Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.


I would agree with this. If we had not bought our house a few years ago when interest rates were lower we would not be able to afford it now.


This is what should make you nervous.

Why should they be nervous? They have a permanently locked-in low rate.


Because if they have to sell no one else like them can afford to buy it - and the price likely has to go down.

But plenty of other people will be able to afford it, duh.

Not necessarily. Right now we are seeing price cuts and houses sitting on the market because there are not "plenty of other people" who can afford them. The prices will come down because that is what it will take to get houses sold.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
My God $950k mortgage!! Can you find a cheaper house?


When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.


I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.


Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.


I would agree with this. If we had not bought our house a few years ago when interest rates were lower we would not be able to afford it now.


This is what should make you nervous.

Why should they be nervous? They have a permanently locked-in low rate.


Because if they have to sell no one else like them can afford to buy it - and the price likely has to go down.

But plenty of other people will be able to afford it, duh.

Not necessarily. Right now we are seeing price cuts and houses sitting on the market because there are not "plenty of other people" who can afford them. The prices will come down because that is what it will take to get houses sold.

Keep saying that. Homes in my W school district are selling well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
My God $950k mortgage!! Can you find a cheaper house?


When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.


I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.


Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.


I would agree with this. If we had not bought our house a few years ago when interest rates were lower we would not be able to afford it now.


This is what should make you nervous.

Why should they be nervous? They have a permanently locked-in low rate.


Because if they have to sell no one else like them can afford to buy it - and the price likely has to go down.

But plenty of other people will be able to afford it, duh.

Not necessarily. Right now we are seeing price cuts and houses sitting on the market because there are not "plenty of other people" who can afford them. The prices will come down because that is what it will take to get houses sold.

Keep saying that. Homes in my W school district are selling well.

Enjoy your new gas stove ban and the county tax

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
My God $950k mortgage!! Can you find a cheaper house?


When you make over $300k a year this is not too much of a stretch. We bought our first house 16 years ago for $500k but times have changed.


I'm sorry it is. We are just addicted to debt in this country. Starting with a $950k mortgage should not be normalized.


Your claim is completely without context.

I'm sorry, but $1m isn't what it used to be.

Better to stretch for a house you want for a long time, than skimp, and have to move at least once, and pay all those transaction costs.


I would agree with this. If we had not bought our house a few years ago when interest rates were lower we would not be able to afford it now.


This is what should make you nervous.

Why should they be nervous? They have a permanently locked-in low rate.


Because if they have to sell no one else like them can afford to buy it - and the price likely has to go down.

But plenty of other people will be able to afford it, duh.

Not necessarily. Right now we are seeing price cuts and houses sitting on the market because there are not "plenty of other people" who can afford them. The prices will come down because that is what it will take to get houses sold.

Keep saying that. Homes in my W school district are selling well.

Enjoy your new gas stove ban and the county tax

My home is all-electric so that doesn’t affect me. Induction rocks. And everyone in MoCo pays the county tax so what’s your point? Enjoy watching prices rise while you keep saying otherwise.

[Anonymous]

Anonymous wrote:


Not necessarily. Right now we are seeing price cuts and houses sitting on the market because there are not "plenty of other people" who can afford them. The prices will come down because that is what it will take to get houses sold.



Keep saying that. Homes in my W school district are selling well.

The question is at what price and for how much longer. If you travel America you will see that every location had its heyday and decline. New technology did and still can change everything. And these days that is happening more quickly. Your picture is too narrow. You don't see what is happening globally and how that is going to affect people's wealth and wages. People think they will never be affected until they are. Live by the dollar, die by the dollar.

[Anonymous]

Just look at how many college graduates cannot find jobs now. This is really happening. It's not some made up thing.

[Anonymous]

Anonymous wrote:OP we had two sets of friends recently purchase around this HHI / mortgage amount too. I think it’s working fine for them - they’re doing renos and buying expensive furniture so doesn’t feel like a cash strapped situation. They have family members with $ that can swoop in and “save them” in the event of job less etc and I think that went into their risk calcs too.

Do you really know the details of friends finances.

Even if they both have HHI of public record, there is no way to know if they have a large inheritance, settlement money, crypto $, or being bankrolled by parents. And these friends sound like “working fine for them” = life funded by rich parents

[Anonymous]

Anonymous wrote:
OP we had two sets of friends recently purchase around this HHI / mortgage amount too. I think it’s working fine for them - they’re doing renos and buying expensive furniture so doesn’t feel like a cash strapped situation. They have family members with $ that can swoop in and “save them” in the event of job less etc and I think that went into their risk calcs too.


Do you really know the details of friends finances.

Even if they both have HHI of public record, there is no way to know if they have a large inheritance, settlement money, crypto $, or being bankrolled by parents. And these friends sound like “working fine for them” = life funded by rich parents

+1 Don't measure your situation by what two sets of friends do. Only you know your own complete financial picture. You cannot presume to know the finances of other people unless you are their financial advisor and have seen all of their assets (as well as the assets of their family members who can "swoop in").

[Anonymous]

Anonymous wrote:
Just look at how many college graduates cannot find jobs now. This is really happening. It's not some made up thing.

Just like it was a thing is the 2000 tech crash and a thing in the 2008 real estate crash. Ho hum.

[Anonymous]

I just made a purchase with a 1.2m mortgage...monthly payment is half of my take home pay (after deductions), and for the other half, most is paid for my only child's private school tuition. I think no savings until rates drop a bit more and I get a refi.

[Anonymous]

Anonymous wrote:I just made a purchase with a 1.2m mortgage...monthly payment is half of my take home pay (after deductions), and for the other half, most is paid for my only child's private school tuition. I think no savings until rates drop a bit more and I get a refi.

What rate did you get? With the way that the economy is tanking, rates will be at 5.5% before you know it.

[Anonymous]

4x income was average when I bought my house in 2000. This sounds very conserative