Did I miss something over the past couple weeks? Have rates gone up that much?

Try a total mortgage payment around $5,600/month when you add in property taxes and insurance. This also assumes that their is no PMI assuming the borrower is below the 80% LTV ratio. The OC Register reported the average median sales price to be $520,000 when it was once @ $645,000 during it’s a high point last year (that’s a 20% drop from the peak). Be sure to watch the data closely in the coming months since the reports are based on a rolling 12 month comparison. Later in the year, the sales volume will appear to be better since the report is based on previous years sales (i.e. what the activity was during 2007 which we know was the start of the bubble pop). So when they start reporting smaller down changes from last year, remember it’s the high point sales that need to be measured (not what happend in 2007 as this was the pop we all heard). But the media will potray it as a stable or market that has bottomed…. not the case. We are still way out from seeing the final fall as other issues will come in to play like those walking from their houses due to being upside down….. it’s going to be a long downhill roller coaster ride with some serious G forces……..

So who lives in this kind of environment? Engineers make 50-60 grand per year at startup, but 5600/mo is four times as much as I’d be able to afford. Lawyers?

My question too.

Just who in the hell is able to afford a $5600/mo mortgage payment? $4,300/mo?

Do these people eat? Do they pay income taxes? Do they drive a vehicle to work or just put on a colorful suit with a cape and fly around all freaking day?

Yeah, I know it’s Orange County and the well-off live here, but my god!!

Actually they expect you to make $80k/yr, be married to someone making $80k/yr, have half of that amount available as a down payment, and be willing to take on roommates.

” Comment by Sean Newton
2008-03-17 15:31:32 Actually they expect you to make $80k/yr, be married to someone making $80k/yr, have half of that amount available as a down payment, and be willing to take on roommates.”

- Well, that explains why 3 of my neighbors have like eleventy billion vehicles parked out in the street against HOA regulations.

As I said I live in Torrance, renting and I have a salary of 85K, my wife has 45K. This is not buying anything around here. But my wife had interesting conversation with coworker, with 45K and husband with around 30K (my estimate). This guys have a house in 90503, bought long time ago . The coworker stated that she cannot aford anything in Torrance this days, but no matter she thinks that the prices are not going down anymore ( prices in 90505 has not even get down a 5% from the top) . Isn’t amasing how stupid people could be?

$600,000 loan amount @ 9% with a 30 year note under standard guidelines would require an income of $200,000 assuming a 33% front end ratio…..with taxes and insurance calculated in total payment. With recent credit issues some lenders are moving back to 28%-30% which puts the required income even higher. With this loan arrangement, you will end up with nearly $54,000 in interest payments in the first year….. not sure what the guidelines are for tax purposes, but it looks like a big chunk to write-off unless Sacramento decides to move forward with removing this write-off or even part of it as it struggles to balance the budget….Does anyone know if their is a maximum that can be claimed on mortgage interest for tax purposes?? Is it adjusted based on income or AGI level??

The high end is great in Santa Monica and other westside L.A. neighborhoods. Maybe it will be hurting later but for now it looks good.

I separate the different price ranges and neighborhoods with analysis on my blog.

Read more at my Santa Monica Real Estate Web-site:
Santa Monica Real Estate