quote:
I would never feel comfortable with a mortgage being 2-2.5X our annual income. I don't see how someone making (let's say) $100K can afford a $250K house.

My wife and I started out in 2000 with a mortgage that was about equal to our annual income, then moved up to one that was about 1.2X

This is all pretty ridiculous. In today's environment it's almost impossible to buy a house that's 1x-1.5x your annual income unless you make absolute bank or live in extremely undesirable places. Home prices arent $150k anymore for single family homes. Our townhouse we bought for $275k in 2017 and it's worth $424k now. For someone to even be at 1.5x income they would need to bring in $282k/yr which would put in top 3-4% of household incomes. The median home sale prices are over $400k now.

A 30 year mortgage on a $250k house (with just 5% down, @ 4.5% 30 year) is $1,232 a month plus tax/ins. How do you feel someone/a couple making $6.5k after tax cant afford that?

This post was edited on 4/12/22 at 3:54 pm

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Posted by REB BEER

Laffy Yet

Member since Dec 2010

16502 posts

Posted on 4/12/22 at 5:51 pm to thunderbird1100

quote:
A 30 year mortgage on a $250k house (with just 5% down, @ 4.5% 30 year) is $1,232 a month plus tax/ins. How do you feel someone/a couple making $6.5k after tax cant afford that?

Figure in property tax, homeowners insurance, medical ins., car ins., car loans, child care (if applicable), cell phones, cable, internet, etc and it gets tight in a hurry. $100k per year ain’t what it used to be.

This post was edited on 4/12/22 at 8:04 pm

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