I very often wonder who can afford to buy the "expensive" houses I see. How do they do it? The owners look so young to me.
When I see in my local newspaper what some of the loans cost, it's clearer to me. A "30-year interest-only mortgage at 5.5% on a $500,000 home would be set at $2,292 a month, compared with a fixed loan at $2,839."
For a youngish couple, both working decent jobs, with their future ahead of them (raises, promotions, seniority, etc.), and with a few years' savings behind them, or a previous home, or with parents' helping... house prices may not be cheap, but they are affordable. For these haves anyway. (vs. the have-nots) |
