Sunday, July 26, 2009

Monthly Payment: $5,848

Dr housing bubble

This home is a perfect example of the mortgage equity withdrawal machine. Let us assume they try to sell this home for $900,000. What would your mortgage look like? We should assume that you will have 20 percent to buy this place:

Down Payment: $180,000

Mortgage: $720,000

PI: $4,911 (assuming 7.25 percent jumbo 30 year financing)

TI: $937

Monthly Payment: $5,848

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