Posted on 07/17/2024 1:18:56 PM PDT by ChicagoConservative27
The dreams of homeownership in the United States are moving further out of reach for middle-class Americans. Affording even the down payment for a typical US home can be a burden, as home prices rise, interest rates remain high, and inventory lags demand.
Now imagine what it’s like in metro Boston.
A median-income household needs to put down 35.4 percent to afford the typical monthly mortgage payments in the United States, according to a June 20 analysis by Zillow. In Boston, that number soars to 61.7 percent, since the typical home value here is $701,349, according to the real estate marketplace.
Boston is a city where people “want to live, work, and go to school,” said Dan Richards, president of Flyhomes Mortgage. Despite the housing challenges, the Boston housing market is going to stay on the current trajectory of growth, Richards added.
We’re victims of our own success, it seems.
(Excerpt) Read more at boston.com ...
"We’re victims of our own success, it seems." This Dan Richards guy is an idiot. Success for making it so expensive??
I generally believe that down payment is to only cover the possible financial loss to the bank.
So, in reality, I believe that banks think it takes 61.7% of the current apparent value of a house as a down payment, because that is how much the bank needs to have covered of the buyer’s believed value (paid price) being threatened by a market downturn that will leave the house in the hands of the bank to sell off, when the economy tanks.
The author, in my perspective, is an absolute idiot. Down payments go down when the house value is believed to only likely keep going upward.
Wait, this starts talking about down payments, then shifts to how much of their monthly income is needed to cover the home loan payments?
No bank will loan with 62% of your income going to the loan costs, each month.
That’s crazy.
Hope they all stay right there too. These massholes spread their disease everywhere else they migrate to. NH and southern Maine are overrun with these communist morons.
The down payment listed here isn’t a bank requirement. It’s the amount needed to leave a mortgage that can be paid by an average homeowner.
Ah, I now understand this article! The resulting monthly loan payments will only work if the down payment is so big that what remains on a loan is within the buyer’s expected income ratio of expenses they can handle, with the loan payments, as well.
The way it was written, or how I read that, left me confused.
I finally came to that position, but after a bit too much time.
Speak for yourself, Dan.
Why would anyone want to live in Taxachussettes? Unless of course you like lots of government, you think it’s cool to be a Masshole, and you hate the Bill of Rights.
In fact, let’s send all the commies to any Marxist nation of their choice for the rest of their lives never to come back to America 🇺🇸.
Would have confused me, too. But there was a similar article posted on FR with the same type of scenario a few weeks ago. LOL.
<>Why would anyone want to live in Taxachussettes?<>
Must be the weather.
Weather is kind of crappy there too
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