We live in Garden City, NY (Long Island).. and our home is just a little over 2,600 SQ Feet. But, I'm telling you... it's nothing impressive by any means. I think everyone around me pays at least $35k or more a year. I can only imagine how much our home would be worth if we didn't have taxes this high. It would probably double in value.
The 2007 Mortgage you received - sounds like a Payment Option Loan. They were incredibly common back then, and had much lower interest rates, than Fixed Rate Loans. You received a 3% Rate when everyone else was paying 5.500%. We received one with a 1% Interest Rate in 2005, and it worked out well for us, but I don't think the loans are offered anymore.
The point I was trying to make is --- as rates rise, I think the appreciation gains are going to slow down. Particularly in very hot markets, but... the slowdown will start regional and spread nationally. It should be interesting for sure.