Quote:
Originally Posted by Mr.C
From the TD Website:
For a 30 year mortgage for $1,000,000.00 at the rate of 4.64%, your Monthly payment is:
Mortgage Payment:$5,123.92
Insurance Payment:$0.00
Total Monthly Payment:$5,123.92
|
Ratehub tells me that based on a gross family income of 130K with a 230K down payment, one could get financing on a home valued up to $1.1 million. This is based on a 2.44% 5-year fixed rate which is available to anyone today through the broker channel. I'm not saying that one should buy a million dollar home with a small down payment, but it can be done. Payments on the mortgage would be just over 3000 per month. So, you're probably looking at about 4000 per month when it comes to total housing costs. Big difference.
I know why you used an interest rate of 4.64% in your example (because the historical average between 2000-2010 was around 5%), but it isn't really relevant in the current market. Interest rates are likely to remain low for the next several quarters. Buy now, worry later.