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Started By
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re: Homebuyers are now spending 40% of their gross income on mortgage and interest costs
Posted on 7/22/23 at 12:15 pm to BearCrocs
Posted on 7/22/23 at 12:15 pm to BearCrocs
quote:
Been in the house six years and would like to cash out and move into forever home but the market is still insane and interest rates are what they are
We want to sell ours in 2-3 years but a lot can change by then I guess. We plan on downsizing though because all of the kids will be gone.
0
Posted on 7/22/23 at 12:21 pm to stout
How are mortgages even getting approved at 40% DTI?
Posted on 7/22/23 at 12:23 pm to stout
I spend like 65% of my income on me mortgage 
terrible investment but at least it's nice. Might be here until I die unless left wing politics force me to move. And I can't take the weather in most places.
terrible investment but at least it's nice. Might be here until I die unless left wing politics force me to move. And I can't take the weather in most places. This post was edited on 7/22/23 at 12:24 pm
Posted on 7/22/23 at 12:24 pm to LSUFanHouston
quote:
How are mortgages even getting approved at 40% DTI?
As mentioned in my OP
quote:
The government continues to try to make it easier and easier for people with lower credit scores and without much money to buy houses.
With the FHA Homebuyer DTI increasing from 35% in 1997 all the way up to 44% in 2022.
Posted on 7/22/23 at 12:25 pm to Raging Tiger
quote:
I think it has to do with people not wanting to make their towns desirable. Aka… not caring about local politics, moving to the area more covenant, and sometimes not taking pride. Its easier to move than to fix the issues
Hmm… to try to fix Alexandria or just move away?
Decisions. Decisions.
Posted on 7/22/23 at 12:25 pm to stout
Writing this sitting comfortably in my house that i put (mortgage + insurance + taxes) 11% of my gross income towards
was around 19% when i first bought the house in 2017 in my mid 20s a few years out of college, but income grew, but still nowhere's close to 40%, that's just fricking insane, when i eventually move to a bigger house i will make the down payment necessary to keep that monthly payment less than 25%, even going well above 20% down if i have to
was around 19% when i first bought the house in 2017 in my mid 20s a few years out of college, but income grew, but still nowhere's close to 40%, that's just fricking insane, when i eventually move to a bigger house i will make the down payment necessary to keep that monthly payment less than 25%, even going well above 20% down if i have to
Posted on 7/22/23 at 12:26 pm to stout
Clearly unsustainable. The high interest rates have to be killing folks trying to buy a home right now.
Posted on 7/22/23 at 12:27 pm to SirWinston
quote:
I spend like 65% of my income on me mortgage
I wouldn't be able to sleep at night.
Posted on 7/22/23 at 12:27 pm to DVinBR
For me I switched careers which brought it from 40% to 65%. Hopefully it's temporary as I get more proficient in my new line o' work. Could always get a roommate (or two) if needed to stay afloat 
Posted on 7/22/23 at 12:28 pm to stout
quote:
With the FHA Homebuyer DTI increasing from 35% in 1997 all the way up to 44% in 2022.
I must have missed that. I thought the rule was no more than 36 house / 42 total debt
Posted on 7/22/23 at 12:28 pm to LSUFanHouston
quote:
How are mortgages even getting approved at 40% DTI?
Do you know how desperate originators are right now?
Posted on 7/22/23 at 12:29 pm to stout
While I don’t agree with your position, I think it would be better received if it the informative to narrative ratio was 90/10. As in, the stats you provide are highly informative but they aren’t definitive enough to support a collapse. I know you just said your stance has always been “correction” but I don’t know what you mean by that given that we are in an inflation correction right now. A real estate correction? Both commercial and housing? Debt correction? Car market correction? All of it? To what levels? What do you believe normal is?
Posted on 7/22/23 at 12:29 pm to Jcorye1
quote:
I have so many friends wish casting a downturn, and while prices will go down, it's not going to be a full blown 2008.
In 2008 nobody wanted to buy the foreclosures. Now due to lack of inventory and prices. 1st time buyers, people wanting to upsize, investors, and flippers are ready and waiting to buy those foreclosures if there is a downturn.
Posted on 7/22/23 at 12:29 pm to LSUFanHouston
My lender was creative af - she was amazing
Posted on 7/22/23 at 12:29 pm to DVinBR
We are just under 10%.
I’d be comfortable going to 20% on a nicer house but can’t find anything for that
I’d be comfortable going to 20% on a nicer house but can’t find anything for that
Posted on 7/22/23 at 12:32 pm to threeputtforbogie
quote:
Commuter transit systems are pretty poor in the South, but I think there’s opportunity to improve.
Especially in Atlanta and Miami with their heavy rail systems.
Posted on 7/22/23 at 12:35 pm to stout
Beware of the Black Swans.
Posted on 7/22/23 at 12:36 pm to Artificial Intel
quote:
Both commercial and housing?
Commercial correction is already happening in large metros. Tons of empty commercial buildings. Defaults are happening too.
Housing is coming.
quote:
Debt correction? Car market correction?
Both already happening. I already posted links in this thread with the info. People are defaulting on consumer debt and the auto market correction started a few months ago. Lenders know this and are tightening on loans for car purchases.
quote:
To what levels?
If I had the answer to that, I would be Elon Musk wealthy.
This post was edited on 7/22/23 at 12:39 pm
Posted on 7/22/23 at 1:06 pm to stout
We're in year 8 of a 20 year mortgage on our house, and it is about 12.5% (principal, interest, and escrow) of our take home pay and our rate is 3.62%. I don't love our house, but I can live with it because I don't want to pay almost double the interest. Plus there hasn't been much out there that we really love and it's not worth the hassle of paying too much and trying to sell this house.
We've had to do some remodeling and other mixups to the house since we lived here, but because we bought below our means it has allowed us to sock away almost 20% of our gross for retirement, fund kids college accounts, and do pretty much what we want. We don't live in a hot market, so this may be easier for us. Even so, the costs here have jumped as well and it makes it easier to stay put.
We've had to do some remodeling and other mixups to the house since we lived here, but because we bought below our means it has allowed us to sock away almost 20% of our gross for retirement, fund kids college accounts, and do pretty much what we want. We don't live in a hot market, so this may be easier for us. Even so, the costs here have jumped as well and it makes it easier to stay put.
Posted on 7/22/23 at 1:20 pm to Artificial Intel
quote:
And again, wages* go further than what it did prior to covid, accounting for inflation and all.
Any link to this?
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