Quote:
Originally Posted by dreamingat30fps
I can't wrap my head around how someone who could potentially have "some struggles" would buy an $8M house... like in my mind I would have to be sooooooo set that no matter what happened I would have no problems keeping the house.
I saw some chart the other day of what they (by they I mean some random site on the interwebz) recommend income wise to afford $X house and I was amazed at how little actual money you needed to have to buy multi million dollar houses.  |
Really? Might be different in the States than in Canada, here there are stress tests for mortgages where you have to be able to afford a 2% upswing in the current rate, so whatever the prevailing rate, you are looked at as though it were 2% more to see if you can meet the income test.
I was playing around with a mortgage calculator the other day - depending on whether he was using a 25 year amortization (fairly common here) or 35 year amortization, I figure his mortgage has to be at least $5M if not more and if so, his monthly payment was calculated to be somewhere between $22K - $30K!! Per month. And those are actual payments, not the 2% added on...so think about what income he must need when his mortgage renews lol.
We pay under $30K PER YEAR in mortgage payments. Which is why we sleep fairly peacefully at night lol.
Quote:
Originally Posted by XutvJet
He'll be lucky to get $5M for it.
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Yeah, I'd guess $6M tops. And that is probably high. I figure he is going to get taken to the cleaners.