Reply to $200K and just getting by

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[quote=Anonymous]RE: mortgage, if you read the article:

Mortgage: $36,000

They took out a $640,000 mortgage at 3.75% after putting down $160,000 for a[b] two bedroom, two bathroom single family home in the outer regions of San Francisco.[/b] Their payment is therefore $3,000 a month, or $36,000 a year. 70% of their $36,000 mortgage is interest. Hence,  Take 70% X $36,000 = $25,200 a year in interest they are paying which is deductible from their $200,000 gross salary.

I don't know where the "outer region of SF" is, but I can tell you, that I lived near SF (not in, but very close to SF city), and bought our house over 10 yrs ago.  Small 2br/1ba house for $730K.  Again, this was over 10 yrs ago. The house is now worth 1.3mil.  We were making about 300K at that point, with no kids. It was definitely comfortable. After 2 kids, and needing a 3br house, we decided it wasn't worth to plunk down 1.5 mil with over 15K in property taxes in a decent but not stellar school district with year after year budget cuts to education.  We didn't drive expensive cars, or wear name brand clothes.  We moved out of the SF Bay Area.

$200K is a lot, except if you live in a very high COL area like SF.  I don't know how teachers survive there. I guess they can only rent, but even rent is ridiculous there.  [/quote]

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