U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Houston
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-31-2012, 07:47 PM
 
52 posts, read 119,603 times
Reputation: 35

Advertisements

When you purchased your most recent home, what multiple of income did you spend on the final home price?

For example, if your home was $200,000 and your income was $50,000, you spent 4 times (4x) your income.

Yes, I'm still researching (for those of you who are looking at my previous posts) so please avoid comments like "it shouldn't matter what someone else does", or "each individual's situation is different". I'm simply trying to get some statistics for the suburban homeowners in the greater Houston area.

Thanks for all your helps guys!

I think my wife and I are considering spending no more than 3x our income. Just wanted to know where that stands amongst other Houstonians.
Reply With Quote Quick reply to this message

 
Old 08-31-2012, 08:26 PM
 
Location: Westbury
3,283 posts, read 5,214,082 times
Reputation: 2937
paid 1.5x my income. enjoying looking forward to paying off my mortgage whenever I want and putting more money into my vacation home. 4x? egads. I'm not really a suburbanite though.
Reply With Quote Quick reply to this message
 
Old 08-31-2012, 08:37 PM
 
175 posts, read 328,106 times
Reputation: 245
We paid a little less than 2.5 times our income. I have heard that is really the best, i.e. safest, ratio.
Reply With Quote Quick reply to this message
 
Old 08-31-2012, 08:48 PM
 
Location: Houston, TX (Bellaire)
4,818 posts, read 11,992,500 times
Reputation: 3994
2.5x, wouldn't feel comfortable going over that.
Reply With Quote Quick reply to this message
 
Old 08-31-2012, 08:51 PM
 
15,121 posts, read 20,213,507 times
Reputation: 12400
When I bought it, about 2.4X, now 2.0X my salary.

I was looking for a house in the 2.0-2.5X range, even though the bank said that I could get a loan for a little more than 4X my salary and the real estate agent that was "helping me" kept on pushing me to go for houses past my limit.
Reply With Quote Quick reply to this message
 
Old 08-31-2012, 08:52 PM
 
489 posts, read 540,565 times
Reputation: 302
Quote:
Originally Posted by chris_ut View Post
2.5x, wouldn't feel comfortable going over that.
Ditto here.
Reply With Quote Quick reply to this message
 
Old 08-31-2012, 10:45 PM
 
18 posts, read 68,812 times
Reputation: 27
When we bought it was 1.2x and now it is .5x I am always amazed at how much people overextend themselves when buying a home in the suburbs.
Reply With Quote Quick reply to this message
 
Old 08-31-2012, 11:36 PM
 
957 posts, read 2,239,015 times
Reputation: 823
Bought 2x income, but had 20% down. So loan was much less than 2x income.

I think what is more important question you and your wife should ask is what is my loan value vs annual income. Don't let that go above 2x income unless you want to live off rice and beans. Don't care what banks say.
Reply With Quote Quick reply to this message
 
Old 09-01-2012, 06:17 AM
 
Location: Knob Hill
2,067 posts, read 3,347,901 times
Reputation: 2258
Quote:
Originally Posted by predatorprey View Post
Bought 2x income, but had 20% down. So loan was much less than 2x income.

I think what is more important question you and your wife should ask is what is my loan value vs annual income. Don't let that go above 2x income unless you want to live off rice and beans. Don't care what banks say.
This is a true statement. We also put down 20% and have a 15 year mortgage. Price paid is 2.6x, loan amount 2.1x and it is tight financially but we're hoping to have another income coming in within the year.

Either way, I'm really liking the fact that in 5 years we'll have some SERIOUS equity in our home! Our last house was a 30 year mortgage and it was like staring into a black hole.
Reply With Quote Quick reply to this message
 
Old 09-01-2012, 07:40 AM
 
1,531 posts, read 2,763,807 times
Reputation: 1865
Under 2x, but we put it on a 15 year mortgage. Even after only 2 years, we have some serious equity in the house... loving it.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Houston
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top