U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [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 09-19-2017, 12:18 PM
 
Location: Atlanta, GA
1,195 posts, read 1,917,464 times
Reputation: 821

Advertisements

http://www.builderonline.com/money/m...ome-mortgage_c

In order to qualify for a mortgage on this home – which would be priced at $303,000 at the national level – Zillow estimates that a buyer would need to earn a minimum estimated annual income of $45,260.

This estimate assumes that the loan is a 30-year, fixed-rate mortgage with a 10% down payment and a 4.5% interest rate, and considers the restrictions given by 43% debt-to-income ratio rules, which prohibit borrowers from accumulating debts that exceed 43% of their monthly income.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 09-19-2017, 12:29 PM
 
1,051 posts, read 659,894 times
Reputation: 2788
Just because they qualify doesn't mean they can pay it. That's an extremely low salary to support that mortgage in the real world.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 12:42 PM
 
Location: Florida -
9,867 posts, read 12,418,934 times
Reputation: 20536
Quote:
Originally Posted by Schmooky View Post
Just because they qualify doesn't mean they can pay it. That's an extremely low salary to support that mortgage in the real world.
Agreed. The article source is 'Builder Online'. Their agenda is to encourage people to buy or build more and bigger houses. Realistically, with property taxes, insurance and a regular load of transportation, food, medical, savings and other bills, only a very few $45K families can actually afford a $300K mortgage. ($45K is a bare minimum, instead of an 'average' as the article suggests).

The 2007/8 RE bubble largely 'burst' because irresponsible lenders were willing to finance more house than buyers could afford ... and life caught-up with them.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 12:45 PM
 
86,039 posts, read 83,554,208 times
Reputation: 61795
as opposed to all those articles that say half of america can't come up with 3k .
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 02:01 PM
 
6,125 posts, read 8,589,024 times
Reputation: 3617
Quote:
Originally Posted by mathjak107 View Post
as opposed to all those articles that say half of america can't come up with 3k .
The article in the OP isn't really denying that. Just saying that IF they had 10% (and no other debt which is also unlikely for many), they could afford it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 02:24 PM
 
Location: Back in the Mitten. Formerly NC
3,832 posts, read 5,766,361 times
Reputation: 5334
Thanks, Zillow. You will be to blame if a bunch of idiots go over extend themselves.

I will pay my car off in December. That will leave me with only my student loans left, around $15K. Since I earn more than the chart's max, they are saying I could afford a $600K+ home. Um, no. I tend to be budget conscious and there is no way I would be comfortable with a mortgage that high.

I lived in an area where rent for a 1 bedroom apartment was more expensive than a 3 bedroom house, so the first time I purchased I felt uncomfortable. I had a $113K mortgage and a $30K salary. While I make significantly more now, I never wanted that feeling again. I did not want to wait to save a down payment, so I kept the budget low. My loan is under $100K. To owe six times that is insane.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 02:34 PM
 
2,243 posts, read 1,120,753 times
Reputation: 3677
I make well over that by myself, not including my SO's salary, and I felt uncomfortable with the idea of paying for a home over $315k on my own monthly budget. $300k on that salary would really put me in a bind mentally and financially, primarily because I like to keep my costs low so I have a cushion.

I wonder how many people making $46k also have the down payment for a $300k home.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 03:17 PM
 
6,125 posts, read 8,589,024 times
Reputation: 3617
Quote:
Originally Posted by jghorton View Post
($45K is a bare minimum, instead of an 'average' as the article suggests).
Actually the article specifically says minimum.

Quote:
Originally Posted by jaynarie View Post
Thanks, Zillow. You will be to blame if a bunch of idiots go over extend themselves.

I will pay my car off in December. That will leave me with only my student loans left, around $15K. Since I earn more than the chart's max, they are saying I could afford a $600K+ home
No, they're not, because the article specifically says it is assuming the mortgage would be all of your debt.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 03:41 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
34,150 posts, read 62,137,161 times
Reputation: 38093
Where, though, will anyone making that much (or more) find a new house for $300,000? Certainly not around here. I laughed aloud in the car when I heard a radio commercial for a mortgage company talking about their new 1% down loans.
They actually gave the example that you only need $1,500 down on a $150,000 house. This is in Seattle, where the lowest priced fixer condo would be double that, and the median house is $722,000. Zillow and others should not make generalizations based on national data, it just doesn't fit that many people.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-19-2017, 03:48 PM
 
Location: Back in the Mitten. Formerly NC
3,832 posts, read 5,766,361 times
Reputation: 5334
Quote:
Originally Posted by GoPhils View Post



No, they're not, because the article specifically says it is assuming the mortgage would be all of your debt.
I make MORE than the max and my only debt besides the house would be $15K in student loans. I know what a debt to income ratio is. So try again.
Rate this post positively 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:

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 > General Forums > Real Estate

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - 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, 36, 37 - Top