Do people with 1.8mil+ houses have mortgages?

[Anonymous]

Some do, some don't - what a weird question!

[Anonymous]

What's the significance of 1.8 million? Why not 1 or 2 million?

[Anonymous]

Of course we do! We don’t have that cash but we do have the 20%+ down payment. We rolled cash from sake of our old house to new (1.85mm). We got rates in 2020 so still low.

[Anonymous]

In MD, you can look up the amount of any mortgage at https://mdlandrec.net

How do you think mortgage brokers get their info to send you endless mailings encouraging you to refi, with the exact amount of your mortgage in the mailer? The info is all public.

[Anonymous]

Don’t need a mortgage, have one because it is basically free money and defensive money.

Not having mortgage or LOC on a house with positive equity is just stupid.

[Anonymous]

We’re in the market for a $2M home. We’ll put about $1 m down and take a mortgage for the rest.

[Anonymous]

Anonymous wrote:People who buy within their means and pay them off, are less likely to foreclose or go bankrupt.

I mean, if there's no loan then there basically is no possibility of foreclosure...

[Anonymous]

As an owner of a $1.8mil home, yes, we have a mortgage.

[Anonymous]

Most people have mortgages even on large balances homes. You can do a a typical 20% down comfortably to a mortgage size of $2M. Over that they can be done but LTVs start going down. Most people buying over $2.5M take mortgages for amount that are easily obtained. They like borrowing cheap money but not if super difficult. Accordingly it would be common to see people buying $3M houses still taking a mortgage for $2m because taking it for more is much more complicated. A person with an $8M house might have a $4M mortgage because a 50% LTV loan is easy and so on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People who buy within their means and pay them off, are less likely to foreclose or go bankrupt.

I mean, if there's no loan then there basically is no possibility of foreclosure...

Ever heard of a tax lien foreclosure?

[Anonymous]

Most investors or those who are savvy would not pay cash. Debt is actually helpful in many ways.

[Anonymous]

Anonymous wrote:What's the significance of 1.8 million? Why not 1 or 2 million?

LOL great question. This is OP. Idk - I feel like 1 million is becoming more and more normalized. 1.5 still seems within reach for most around here and in my head 1.8 starts becoming the point of wealth where you might just be rich enough to pay it all off. obviously I'm "middle class" for asking such dummy questions, but i appreciate those who chimed in with smart, honest answers.

[Anonymous]

1.8 million with 1.4m mortgage. rate is 2.875%only

[Anonymous]

We built our house for 2.7M several years ago. Our mortgage is just under $2M. The house is now worth $3.3M. And we have a LOC too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's the significance of 1.8 million? Why not 1 or 2 million?

LOL great question. This is OP. Idk - I feel like 1 million is becoming more and more normalized. 1.5 still seems within reach for most around here and in my head 1.8 starts becoming the point of wealth where you might just be rich enough to pay it all off. obviously I'm "middle class" for asking such dummy questions, but i appreciate those who chimed in with smart, honest answers.

You’re correct that at a certain price point, probably not much higher than $1.5M locally, the number of people that can afford the house starts to get fairly small. I’d imagine that by $2m and certainly by $3m houses sell much more slowly given the tighter market.