One brochure that I picked up was for the Metrome condo development which implored:
Renting is so 6 months ago. [Give your landlord the boot] Renters become homeowners with no painful crack of the wallet. For about 1,508.46* a month you could be living it up in your own downtown digs. We're talking slate flooring and granite countertops...We all know condos won't sell unless they have the obligatory granite. It must be better then sliced bread. Here are the payment details for 1,508.46:
* Based on a purchase price of 425,700.00 . First mortgage loan amount of 340,550.00; 480 month term pay option loan with a minimum payment rate of 1.475%. Minimum monthly of 939.66. APR 5.884% with a lifetime cap of 10.05% Fully indexed interest rate will be based on the 12 Month Treasury Average plus a margin of 2.55%. Second mortgage based on 42,500.00 Line of Credit at 7.75%, interest only payment of 274.80, 7.98 APR%. Scenario reflects 10% down payment HOA fees of 294.00 per month included. Above monthly payment does not
include property taxes of approx. 443.44 per month. .....
Toxic mortgages for everyone! Anyway, its lovely weather here, which is tempting me to buy this very condo. I am sure a few years ago, before the housing bubble, San Diego's weather must have been miserable year round. I will be heading to LA soon and will have a report from there.