help me understand...

[spinDrAtl]

I hear you, but the asking price on entry level around here starts around $275K, so we may be talking about getting that price closer to $250K list, without the additions. That becomes a whole different ballgame.

Hmm, let's say we are dealing with an end user (owner occ) with good credit and goes for a 30 year fixed rate mortgage. For simplification, we will use your two numbers and not deduct any down payments.
275k @ 6.5% = $1738.19 principal and interest.
250k @ 6.5% = $1580.17

Your actual mileage may vary based on credit score, down payment, taxes, insurance and so on and so forth, but my point here is that 25k in the selling price financed with a typical long term fixed rate is not that big a difference ($148 a month). Some of these other factors might affect one's ability to buy the house , but if that amount on the sales price is the difference between being able to afford the house or not, these buyers are in too high a price range already , IMO.

 

[Mango]

Hmm, let's say we are dealing with an end user (owner occ) with good credit and goes for a 30 year fixed rate mortgage. For simplification, we will use your two numbers and not deduct any down payments.
275k @ 6.5% = $1738.19 principal and interest.
250k @ 6.5% = $1580.17

Your actual mileage may vary based on credit score, down payment, taxes, insurance and so on and so forth, but my point here is that 25k in the selling price financed with a typical long term fixed rate is not that big a difference ($148 a month). Some of these other factors might affect one's ability to buy the house , but if that amount on the sales price is the difference between being able to afford the house or not, these buyers are in too high a price range already , IMO.

But lets say they bank that money for say 7 yrs. (average time a person is in a home)
That equates to about $13K with interest more or less. Now they have 1) either a start of a downpayment, or they can use it to buy the granite and stainless refridgerator for considerably less money than the extra 25K.

 

[spinDrAtl]

But lets say they bank that money for say 7 yrs. (average time a person is in a home)
That equates to about $13K with interest more or less. Now they have 1) either a start of a downpayment, or they can use it to buy the granite and stainless refridgerator for considerably less money than the extra 25K.

Not quite sure of your point here. Of course if you could bargain the builder down by removing those items or they weren't there and you had that cash in hand, you could do something with it. My point was regarding the statement of 275k vs 250k being 'a whole different ballgame' for the buyer, affordability wise as far as getting into the house.

I would agree that if 25k is being charged for something worth far less, then yes, it would be better to not have it and spend the money more wisely yourself.

 

[Pirate]

Hmm, let's say we are dealing with an end user (owner occ) with good credit and goes for a 30 year fixed rate mortgage. For simplification, we will use your two numbers and not deduct any down payments.
275k @ 6.5% = $1738.19 principal and interest.
250k @ 6.5% = $1580.17

Your actual mileage may vary based on credit score, down payment, taxes, insurance and so on and so forth, but my point here is that 25k in the selling price financed with a typical long term fixed rate is not that big a difference ($148 a month). Some of these other factors might affect one's ability to buy the house , but if that amount on the sales price is the difference between being able to afford the house or not, these buyers are in too high a price range already , IMO.

This is precisely what I find to be the problem with real estate currently. Never mind that 25k buys a nice car or so many other things, it's only $150 a month. The disconnect of the value of something when you mortgage it at a low rate is ridiculous. I realize SpinDr that you are talking about the price difference not closing out a buyer because of the payment, but the 25k will cost you over 50k if you finance it, period. If you had to work to save 25k it sure would be a different story. This is the credit mentality which I always complain about and if you say it doesn't exist in the higher end homes I can assure you that you are uninformed.

BTW if anyone knows a buyer who will pay 25k for stainless upgrades and granite tops I will give you a 40 percent split of the 25k at closing:funn:

 

[Mango]

Not quite sure of your point here. Of course if you could bargain the builder down by removing those items or they weren't there and you had that cash in hand, you could do something with it. My point was regarding the statement of 275k vs 250k being 'a whole different ballgame' for the buyer, affordability wise as far as getting into the house.

I would agree that if 25k is being charged for something worth far less, then yes, it would be better to not have it and spend the money more wisely yourself.

$143 a month in payment is susbstantial to some people who are seeking affordable housing. Even though FNMA and FHLMC approve loans with higher debt ratios with someone with good credit, ie: 45% total of their gross income combined debt is still quite a chunk of their wages. If their total monthly outlay is approx. $2000 a month, no debt, no car payment, someone could qualify with a 2 income family of $35K each.

I am not sure why this thread has gotten so much attention when SoWalSally posted 2 threads about affordable housing in Walton County and not one reply?
What am I missing here? PM me with answers if you feel the need.....................

 

[SHELLY]

I am not sure why this thread has gotten so much attention when SoWalSally posted 2 threads about affordable housing in Walton County and not one reply?
What am I missing here? PM me with answers if you feel the need.....................

We hashed out the "affordable housing" and "low wage" problem back in February. At that time lots '0 people thought all would be well when the "Spring buying season" would turn things around. Some people even believed that $12.50 per hour was a reasonable "living wage" for the SoWal area.

As for that "minimal monthly $148" SpinDoc....no problem, just toss it on the top of the heap with the rest of the debt:

 

[Smiling JOe]

Hmm, let's say we are dealing with an end user (owner occ) with good credit and goes for a 30 year fixed rate mortgage. For simplification, we will use your two numbers and not deduct any down payments.
275k @ 6.5% = $1738.19 principal and interest.
250k @ 6.5% = $1580.17

Your actual mileage may vary based on credit score, down payment, taxes, insurance and so on and so forth, but my point here is that 25k in the selling price financed with a typical long term fixed rate is not that big a difference ($148 a month). Some of these other factors might affect one's ability to buy the house , but if that amount on the sales price is the difference between being able to afford the house or not, these buyers are in too high a price range already , IMO.

EXACTLY my point. They are already stretching it to make ends meet and an extra $100 in the pocket every month can go toward putting diapers on little Joey.

 

[Lady D]

That is quite disturbing.

I cannot believe this is not being removed off of here!!!

 

[Kurt]

Good gracious!! What on earth happened to post #21!!!!!

SJ...I bet your computer or the website has been "hacked" with porn photos like that!

And to think a comment from me about a condo being "way over priced" was pulled off in an instant...shesh :roll:

Kurt....oh.....Kurt!!

Sometimes when you hotlink a photo, the photo on that URL is replaced later.

If anyone ever sees an inappropriate post, click the report post button at the lower left of the post. Thanks!

 

[Mango]

We hashed out the "affordable housing" and "low wage" problem back in February. At that time lots '0 people thought all would be well when the "Spring buying season" would turn things around. Some people even believed that $12.50 per hour was a reasonable "living wage" for the SoWal area.

As for that "minimal monthly $148" SpinDoc....no problem, just toss it on the top of the heap with the rest of the debt:

Remembering discussing it, "hashing" it out in my book means solutions were found.
SoWalSally threads were solutions offered by a major employer in the area for affordable housing. Not construction by developers. Different animal altogether.