| Mortgage Amount | ||
| $540,000 | ||
| $688,000 | ||
| $810,000 | ||
| $885,000 | ||
| $1,000,000 |
The same buyer who qualified for a $810,000 loan amount just 15 months ago can now borrow $1,000,000 and get the same monthly payment – a whopping 23% increase!
No wonder sellers expect +11% year-over-year!
How many years (decades?) ago did I first use the term “monthly nut?”
One thing to consider however is that an $810k mortgage implying a $1.1m home would see a $1200/mo tax bill. $1m mortgage implying a $1.3m home would see $1400/mo. Insurance would likewise be that much higher. The monthly nut is more than just the mortgage.
$200 per month is a rounding error when you’re trying to make your wife happy?
how does the SALT limit affect those numbers?
The last post said the results were inconclusive on the effects of SALT on housing but my opinion is that there has been no effect.
Where we thought the big impact would be – on the market around $1M – has instead been the hottest performer.