$397,000 (IDK the monthly payment) for a house in Sacramento, CA. Is this insane? And how do people afford the $397,000?

1. I may be weird, but I don't understand how an entire house for sale is worth 400k (IDK the monthly payment), but I’ve seen person house in the back yard worth 3-400k. <br><br>2. On top of that being expensive, how do they afford that house? You need to put down 20% to avoid PMI insurance, and then you also need to pay 10% down to avoid the 20% down fee, Is that what it’s called? I’m not sure. Plus you need to put down 30% to get a good interest rate and you need to put 17% down to get your first home. So that’s a total of 77% down. Plus I imagine you need to have at least another 74% in case things go wrong and you can’t pay your mortgage. <br><br>So you need at least 8% left over for everything else in case you lose your job and need to pay your house payment. So now we need 154% down for the house. May be I’m adding them up wrong but 154% is insane! I don’t understand. I don’t have 154% of 397,000. How many of you do? <br><br>What am I missing? We are we at here? I may be weird, but I don’t understand house prices. They are insane.