Honest Opinion Required!

[sdrealtor]

A “Rule of thumb” is just that and you need to look deeper. Here’s an extreme example_ say you make 50K a year but just inherited $10M. Should you just limit yourself to some multple of your income. I know this is a silly example but the truth is you really need to look at the total payment relative to your income to make the best decision.

I also dont know whether you will be able to buy low in high interest rate environment and refinance later to rates anything approaching where we are at today. Whose to say prices arent low today either? In some parts of SD, they seem to be. It all depends where you are looking. The best advice is to buy something you love that will keep you happy for the next 5 to 10 years if not longer. Something that you can easily afford and something that is close to buy vs. rent parity.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[(former)FormerSanDiegan]

[quote=CDMA ENG

However… You need to exclude our resident realtors on this site from that comment. SD Realtor, sdrealtor, and Urban Realtor have shown themselves to be fine examples of thier industry and you should ask thier opinion and listen chartable.

Also when I was a kid it was 2.5 times? When did the multiplier become 3X? Was it the same people that decided the Debeers commericials should go from one months salary to 3? 😛

CE[/quote]

The factor 2.5x income was a rule-of-thumb based on higher interest rates (e.g. 10%+). The 3x income factor is based on 7-8% range of rates and 28%- 36% DTIs.
Today, with all the on-line calculators there is really no need for rules of thumb when you can compute exactly what your payment will be. Find a payment that fits your budget and use that to drive your decision.

[CDMA ENG]

Thanks Former…

CE

[CDMA ENG]

Thanks Former…

CE

[CDMA ENG]

Thanks Former…

CE

[CDMA ENG]

Thanks Former…

CE

[CDMA ENG]

Thanks Former…

CE

[sdrealtor]

Thanks from me too. It’s too easy to calculate payments and compare to your income to bother with a rule of thumb.

[sdrealtor]

Thanks from me too. It’s too easy to calculate payments and compare to your income to bother with a rule of thumb.

[sdrealtor]

Thanks from me too. It’s too easy to calculate payments and compare to your income to bother with a rule of thumb.

[sdrealtor]

Thanks from me too. It’s too easy to calculate payments and compare to your income to bother with a rule of thumb.

[Author]

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