How to afford a $400k house? Are most people in these "house-poor" or stuck with ARM about to increase?
I make about double the average salary for my town (won't say where, but in the midwest US, population about 100,000 people), and my house cost well under $200k, and I'm certainly not left with tons of money left over at the end of every month.
So...do the people in these houses all earn over $250,000? Or do they all pay 80% of their net income towards the mortgage and eat peanut butter sandwiches? Or are they all pinned under some sketchy mortgage and about to lose the property?
Obviously I know that this question can't be answered for "all" people in homes that cost that much. I'm just looking for a couple of realistic examples of how people can afford such a property.