Frustrated by the low end of the SF home market

[one.person]

[Alan]

Don't forget to take 10-15% out to fund your retirement.

Unless you consider your house to be your retirement.

But if that is the case you better have a bigger down payment and a 10 year mortgage so that interest doesn't eat up everything you would be saving.

[mukoh]

I am not trying to take your situation and make it out like you are in trouble.
But if making $90k and paying 25% off the top of that you might want to talk to an accountant first. People in the $150k pay 28%.

Secondly 6.5% interest on non-jumbo right now is for someone whose credit is below 700s. Typical rates right now are 5.75 for 30 year fixed and you can always buy a it down to make it affordable.

[rose-colored-coolaid]

[rose-colored-coolaid]

[EconE]

[mukoh]

Econ, I am familiar with both...

I am not selling anything. Pointing out to the frustration of the topic starter, is that it is not that sour out there, loan shopping, and house shopping is becoming a normal process that it used to be.

[Markor]

[Markor]

[Markor]

[mukoh]

Markor,
The landlord is calling next month rent went up $200 a month

[Markor]

[wreckingbull]

OP,

Whatever you do, DON'T DRIVE UNTIL YOU CAN AFFORD. That has to be the worst possible thing that could be done in our declining market. Not only will you spend your precious hours stuck in traffic, you will also find that our outlying areas will simply not hold their value as well. How can you expect this correction to happen so fast? It took five years to get us into this mess, it may take long to fully unwind (and I believe it will.)

As far as historic Seattle affordability is concerned, I purchased in '98, in Ballard. At that time my monthly payments were pretty much what it would have cost to rent the same place. 2002 was when it really started getting out of whack.

[Markor]

[mukoh]

Outlying areas are definately still in such a struggle that it makes no sense to buy there.
Lake Stevens, Marysville by just new home prices are off by 30%.