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I have never attempted to buy a house. Never had the down payment and in the Bay Area house prices move more out of my reach by the second. Closest I’ve come to dropping that kind of money was buying a car. Figured out what monthly payment I thought I could reasonably pull off, signed the paper, paid that monthly payment for 6 years until it was paid off. Done.
I realize you are talking some serious interest on a loan of $500k+, but I fail to see how a slight variance in that rate would make me go from “I can’t afford a $500k+ house” to “Now I can afford a $500k+ house”. I’m asking because we are still in a housing shortage crisis (which I blame more on rental properties than anything else) and one of the causes being sighted is record low interest rates. Give what I’ve just said what am I missing? Either you can afford the monthly payment or you can’t. What does interest rate have to do with it?
I realize you are talking some serious interest on a loan of $500k+, but I fail to see how a slight variance in that rate would make me go from “I can’t afford a $500k+ house” to “Now I can afford a $500k+ house”. I’m asking because we are still in a housing shortage crisis (which I blame more on rental properties than anything else) and one of the causes being sighted is record low interest rates. Give what I’ve just said what am I missing? Either you can afford the monthly payment or you can’t. What does interest rate have to do with it?