Is it still possible to afford a home?

[LeadMagnet]

The bubble popped in greater Boston in October of 2005. Prices droped about 10% ( a little more for house over $600k and a little less for condos). The prices have settled out to where they are now.

Now you cannot buy a house withing 40miles of Boston on 1/2 acre, over 2000sqft, in a neighborhood for less then $500k, and every mile closer to Boston you get the prices go up $10k)

 

[alent1234]

there is an RE investor who posts in the FatWallet finance forum sometimes. He owns a few properties around Boston and most likely there are others who own multiple properties that is tying up inventory.

You also have to look at the median and average incomes since the ratio is 3:1 house payment to gross income. if you have blue collar people making less than $100,000 in family income carrying $500,000 mortgages like they do in california it's not going to last. Once their rates go up because they are in crazy loans there will be a lot of angry calls to the bank. A lot of times people signed and had no idea what the terms of their mortgage were, only that the payments were low. just like in the quicken smartloan ads that can save you thousands of $$$.

Housing isn't like the NASDAQ where you can lose 50% in a few months. Once a trend starts it takes years to reach the bottom. Back in the late 1980's and early 1990's it took 5 years to reach bottom. My mom bought a 1br apartment then as an investment for $15,000 in 1993. Back around 1987 when she lived in there with my dad and renting, the original asking was $80,000. A lot of people bought in those early years and lost big.

 

[rh71]

Originally posted by: JeffreyLebowski
I just got a house in a North Dallas,TX suburb. 3 bed 2 bath 1500 SQ ft for $108K.

That's the stats for our house, minus 1 bath, and we paid 3x as much... now it's worth 4x as much.

 

[purbeast0]

Originally posted by: purbeast0
EDIT:

another general mortgage question ... if you do a double payment on a mortgage, does the added extra $ you put in go directly to the principle %100 ?

So like if you have a $1000 mortgage where $800 is going torwards interest and $200 torwards the principle, and pay $2000 for the month, does that mean $1200 goes torwards the principle?

bump trying to get an answer for this question

 

[PingSpike]

Originally posted by: purbeast0

Originally posted by: purbeast0
EDIT:

another general mortgage question ... if you do a double payment on a mortgage, does the added extra $ you put in go directly to the principle %100 ?

So like if you have a $1000 mortgage where $800 is going torwards interest and $200 torwards the principle, and pay $2000 for the month, does that mean $1200 goes torwards the principle?

bump trying to get an answer for this question

I was under the impression 100% of extra payments went towards the principle...but don't take it from me, I don't know sh|t.

 

[kranky]

Originally posted by: purbeast0

Originally posted by: purbeast0
EDIT:

another general mortgage question ... if you do a double payment on a mortgage, does the added extra $ you put in go directly to the principle %100 ?

So like if you have a $1000 mortgage where $800 is going torwards interest and $200 torwards the principle, and pay $2000 for the month, does that mean $1200 goes torwards the principle?

bump trying to get an answer for this question

Almost certainly. Your payment coupon should have a line where you can enter how they should allocate any extra amount above your standard payment, and you should indicate it's for principal.

It is possible that if you don't tell them that, they could apply it to your escrow, though.

 

[purbeast0]

Originally posted by: kranky

Originally posted by: purbeast0

Originally posted by: purbeast0
EDIT:

another general mortgage question ... if you do a double payment on a mortgage, does the added extra $ you put in go directly to the principle %100 ?

So like if you have a $1000 mortgage where $800 is going torwards interest and $200 torwards the principle, and pay $2000 for the month, does that mean $1200 goes torwards the principle?

bump trying to get an answer for this question

Almost certainly. Your payment coupon should have a line where you can enter how they should allocate any extra amount above your standard payment, and you should indicate it's for principal.

It is possible that if you don't tell them that, they could apply it to your escrow, though.

okay thanks. that's what I always assumed but I just wanted to make sure. it seems double payments whenever possible are about the best thing you can do for your home heh.

 

[AStar617]

Originally posted by: iamwiz82
In 99% of the US the real estate market isn't run up so high. Shocking that there is life outside of California, Boston, and NYC, eh?

Fixed. Prices are ridiculous here. Consistently among the highest cost of living in the nation.

 

[mrchan]

Originally posted by: mrchan
The bubble is (slowly) popping in CA.... You get can a brand new 1400 sq. ft 3 bed 2.5 bath house in the low $300k range less than 10 mins from downtown Sacramento. If you're interested, send me a PM

Not that anyone was interested, but those (6 of them) are all sold.

 

[Fritzo]

Only the costal real estate market is that high. I just build a high end house for $220K in a new luxury subdivision. It's on 2/3 of a acre of land, and they're going to build a park/stocked pond/huge fountain just down the street from us.

See?