[doc30]

They talk like this: The looks for places that suit the typical professional American family, making $50,000 or $60,000 a year.

Then go on to say With a median home price of $493,900, life in Sharon is also much more economical than in the affluent communities of Brookline, Newton, and other towns closer to Boston.

I don't consider $493,900 the least-bit affordable for most families on a 50 - 60k income. Unless they already own a home with lots of equity, and the first part of the article even mentions "first home." The entire article is based on affordable housing then they talk about all these places where the houses cost 10 times the annual income of the target families.

You forget that prices like this are not unreasonable for a $50-60K annual income. These buyers are not expected to even have a down payment. They get these homes through interest only loans and have mortgage payments half of what you suggest. The latest statistics say that 40% of home purchases are made with these exotic loans. Also, those exotic loans are providing more $$ for buyers so that bids up the housing market to the point where only exotic mortgages can get you into a decent home.

[RockinRight]

Not interest-only, negative amortization. The payment is LESS than the interest, which means the balance goes up.

[goldstategop]

Yes and most people who buy those kind of homes won't be spending a lifetime in them. They'll hang onto them for five to seven years and then resell them and move on. That's why ARM's are so popular. No one buys a home for life anymore.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus