Doing different math. Back in 1996 one could buy in Clairemont as a starter home w/minimum down.
Today’s numbers. 400k w/3.5 % down (+closing costs) 4.5% x 30 years comes to 1,956 + prop tax 333 + PMI? not sure, about 350? + insurance? 75? comes to about $2,700 a month.
Don’t want to do FHA, which is a high percentage of purchases lately. Even w/%5 down, those numbers work out to 1,925 + 333 + 350 +75 is close to $2,700.
Considering 92117 is not exactly prime SD and lagging school distrcit, I really wonder how many people have almost 100k to put 20% down and closing costs to live in Clairemont.[/quote]
If you want to compare minimum down, that’s fine. Let’s apply it to both situations.
2010: 3.5% down ~ 2700/month (35% or $700 premium over rent
1996: 3.5% down ~ 1520 / month (38% or 420 premium over rent)
P&I :~1150
Taxes: 170
PMI: 150
Insurance: 50
Actually, this case more resembles what we did. We paid 5% down, and our PITI + PMI was about $1450 per month.
At that time we had a dual income, working professionals a couple years out of school, one of us with a PhD in Engineering, the other working as an Architect. Clairemont is what we could afford as a starter in 1996.
The same area is more affordable today by many metrics.
