2022 Real Estate Observations (Boston: title search, paid, frugal)

[MtPleasantDream]

So I saw a colleague purchased a $1.6 million house with 300k down.
I didn't know she is so rich lol (She's around 35).

[msRB311]

Originally Posted by MtPleasantDream

So I saw a colleague purchased a $1.6 million house with 300k down.
I didn't know she is so rich lol (She's around 35).

haha. I mean I would have been satisfied enough to find out about the 1.6 million home.

Is 300k down on a 1.6 million house a lot? Is she single? If not, parents definitely helped or someone died and left her money.

[newenglandgal123]

Originally Posted by msRB311

haha. I mean I would have been satisfied enough to find out about the 1.6 million home.

Is 300k down on a 1.6 million house a lot? Is she single? If not, parents definitely helped or someone died and left her money.

$300K down on a $1.6mil home isn't even 20%. I certainly wouldn't want to be single carrying that large a mortgage. However, it sounds impressive from the outside to be 35 and able to purchase a $1.6mil home. Maybe she's making $400K/year? lol

[msRB311]

Yeah i didnt think 300k down on a 1.6 mil house sounded great...what would mortgage payments end up being? But yes...she was able to get approved for the house/mortgage so she must have the money.

[newenglandgal123]

Originally Posted by msRB311

Yeah i didnt think 300k down on a 1.6 mil house sounded great...what would mortgage payments end up being? But yes...she was able to get approved for the house/mortgage so she must have the money.

Looking at around $8700/month PITI based on a 6% rate. Pocket change.

[ben young]

So a person puts down 3% on a 800,000 dollar home,$24,K ,but buy a $70,000 Suv ...Priorities I guess

[id77]

Originally Posted by simplexsimon

The low down payments are pretty interesting too because it says something about the market for sellers… I thought it was very recently that only big down payments or cash offers won bids.

It still is in some areas. I did a few random searches on surrounding blocks here and all the recent stuff was at least 20% down if not all cash (or at least no mortgage logged).

[MtPleasantDream]

Originally Posted by newenglandgal123

Looking at around $8700/month PITI based on a 6% rate. Pocket change.

She bought it last year, so the mortgage rate is probably under 3%.

[newenglandgal123]

Originally Posted by MtPleasantDream

She bought it last year, so the mortgage rate is probably under 3%.

~$6300/month PITI...that makes it so much better ! chump change instead of pocket change lol

[id77]

Originally Posted by newenglandgal123

Looking at around $8700/month PITI based on a 6% rate. Pocket change.

One other possibility is that it's a very short time at that amount and a follow-up lump-sum is paid to lower the payment. When we bought, we put ~25% down because we hadn't sold our previous place yet; once it sold we took some of the proceeds and made another payment for about 33% of the principal, then immediately re-cast the mortgage to drop the P&I part of the payment (by around $2k/month). On the public records though, it'll only show the original down and mortgage amount so the outside observer would have no idea that the current mortgage payment is actually only based on about 65% of the original loan amount.