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Message
re: House = (x)household income
Posted on 8/10/15 at 5:40 pm to yellowfin
Posted on 8/10/15 at 5:40 pm to yellowfin
quote:
I don't think 20% down is very common anymore
I'd agree for some markets for sure. Plus some probably shouldn't when you consider rates as low as they were with rising home values. Might be better off buying with less down to take advantage of price and rate. Would take a long time to buy a 400k house coming off professional school.
I think we bought at 5% down.
As someone mentioned, having a wife who works is pretty helpful. House Uptown mortgage was 1.87 at purchase in May 2014. Changing just salary is 1.74 now and should be 1.5 something end of this year.
This post was edited on 8/10/15 at 6:31 pm
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Posted on 8/10/15 at 6:56 pm to lsupride87
The 9% of net is OT level insanity.
I'm at 18% of gross and I often think I overspent (I'm paranoid and I have lumpy cash flows). I bought at about 2.4x annual comp, but was approved for nearly 4x. I can't imagine what would have happened if I would have used all that rope to hang myself.
I'm at 18% of gross and I often think I overspent (I'm paranoid and I have lumpy cash flows). I bought at about 2.4x annual comp, but was approved for nearly 4x. I can't imagine what would have happened if I would have used all that rope to hang myself.
Posted on 8/10/15 at 7:06 pm to TheHiddenFlask
quote:
I can't imagine what would have happened if I would have used all that rope to hang myself.
Same thing happens with CC limits. It's as if they are naive or arrogant enough to assume you will pay them first before all other creditors.
Posted on 8/10/15 at 7:11 pm to yellowfin
quote:
I don't think 20% down is very common anymore
0% down oh yeah.
...
Wife and I are house purchase/gross income = 2.1 . we tend to do okay and are comfortable. It's a 7/ 1 ARM on a 30yr payment plan. We will be out of the house in another 4 years. Probably bought a little too much house, but my income will triple+ in 4 years and the house is a easy resell. We are spending less on the house now than we did on rent living in Nola.
Posted on 8/10/15 at 7:32 pm to dragginass
quote:
I have no idea what the percentages are. I assume you are saying most people put down less? I won't consider anything I can't put 20% down on comfortably.
On a first home 20% is extremely rare
Posted on 8/10/15 at 7:37 pm to yellowfin
Do they still do 90/10/10 type loans? I did this for the first house and payed down the 10% loan pretty quickly. You can avoid pmi that way.
Posted on 8/10/15 at 7:40 pm to yellowfin
Really? You don't think most millenialls saving up $40-60k is realistic. You prude.
These threads are the only things that ever make me feel like I'm loose with my purse strings. I've got to be in the most conservative 10% in my generation and I'm still not even close to half of these "guidelines".
These threads are the only things that ever make me feel like I'm loose with my purse strings. I've got to be in the most conservative 10% in my generation and I'm still not even close to half of these "guidelines".
Posted on 8/10/15 at 7:47 pm to TheHiddenFlask
quote:
. I can't imagine what would have happened if I would have used all that rope to hang myself.
I told the bank my wife was quitting work, and I don't think they even cared our HH income was about to go down. They looked at our tax returns, and tried to hand me the keys to a McMansion.
Posted on 8/10/15 at 9:02 pm to TheHiddenFlask
I agree 9% is insane. Apartments near me (downtown Denver) are ~$1,800 for a one bedroom. This Hawkeye guy must be balling out or living off of Colfax.
Posted on 8/10/15 at 9:14 pm to dragginass
quote:
I told the bank my wife was quitting work, and I don't think they even cared our HH income was about to go down. They looked at our tax returns, and tried to hand me the keys to a McMansion.
First house, I was 24, wife 26. We were making ~95k. We got approved for 370k i think.
This was 2006
Now our mortgage payment+ taxes+ insurance is ~10% of gross(2nd house)
This post was edited on 8/10/15 at 9:18 pm
Posted on 8/10/15 at 9:14 pm to BioBobcat
I'm well under 1X gross income for condo, and the mortgage is under 5% of take home. If I could do it for less, I would. Non owner occupied real estate is a different story, but at least that's an investment. Primary residence is a place to live, subject to personal preference and comfort level. It is not an investment. Not if you're smart anyway. People talk about appreciation, but never factor in time value off money and maintenance.
Posted on 8/10/15 at 9:45 pm to barry
Bought 4 years ago. 0% down. RD loan. Right now, the purchase price is 1x years gross. But value has gone up. We could sell now and put 20% on the next one that's 3x gross. Our monthly payment (mortgage/tax/ins) is ~7% gross monthly. We've got a few more years here in this starter before we either buy or build our dream home. We're in no hurry.
Posted on 8/10/15 at 9:50 pm to Iowa Golfer
I agree with most of what you said. However, I am having a hard time wrapping my head around people being able to afford living so close to downtown Denver on less than 10% take home.
I guess you could make a lot of money? But, say you made $120,000 a year and taxes were not a thing. That means you are taking home $10,000 a month. 10% of $10,000 is $1,000 a month for housing. The cheapest place I found near downtown was ~$400,000. With a 20% down payment it would be ~$1,500 a month, 15% of take home. I guess you could put a larger down payment down, but this example is generally unrealistic.
I am interested to hear how people are managing to live here (Denver) for less than 10% take home.
I guess you could make a lot of money? But, say you made $120,000 a year and taxes were not a thing. That means you are taking home $10,000 a month. 10% of $10,000 is $1,000 a month for housing. The cheapest place I found near downtown was ~$400,000. With a 20% down payment it would be ~$1,500 a month, 15% of take home. I guess you could put a larger down payment down, but this example is generally unrealistic.
I am interested to hear how people are managing to live here (Denver) for less than 10% take home.
Posted on 8/10/15 at 9:58 pm to BioBobcat
quote:
I agree with most of what you said. However, I am having a hard time wrapping my head around people being able to afford living so close to downtown Denver on less than 10% take home.
Hell 10% is crazy in south LA, and our housing is cheap. Your average 100thousandaire brings home 6K or less a month. 10% of that will barely get you a sketchy apartment or a 2br fixer upper in the hood.
Posted on 8/10/15 at 10:03 pm to dragginass
80k/year and 1700-1900 mortgage per month is ok. Anyone with a 2,000 mortgage should be making no less than 100k.
Posted on 8/10/15 at 10:10 pm to dragginass
I am glad I am not the only one who is perplexed. My best guess is that these people have put down insane down payments, live in the ghetto, or are full of ______.
Posted on 8/10/15 at 10:13 pm to BioBobcat
I think he is the guy that said his household income was over 200k so 10% of gross is a pretty good payment.
Posted on 8/10/15 at 10:22 pm to yellowfin
That is not unreasonable, but throwing $200,000 into a a tax calculator, suggested that they would owe $37,500 in Federal income tax. Not including state taxes that would leave them with $162,500. Divide by 12 that leaves $13,541 a month. Multiply by 10% that is only $1,354 for rent. That will probably work in Louisiana, but it won't get you far in Denver.
Posted on 8/10/15 at 10:25 pm to BioBobcat
Well he said gross so tax is kind of irrelevant
Posted on 8/10/15 at 10:28 pm to yellowfin
I may be wrong, but isn't gross pre-tax and net post-tax?
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