Home › Forums › Financial Markets/Economics › Income to Mortgage Ratios in the new Banking System???
- This topic has 75 replies, 10 voices, and was last updated 16 years, 6 months ago by
DWCAP.
-
AuthorPosts
-
February 25, 2008 at 8:04 AM #11924February 25, 2008 at 11:42 AM #159584
vizcaya
ParticipantThe ratio that I approved on was 1 to 3.75. Or a mortage of 300k loan from a 80k annual salary. For me, I would not want to try to go any higher than that ratio. We have to be able to live, and enjoy life. It would suck to be a slave to your house.
Banks will be forced to bring those ratios down, otherwise people will continue to goto into default.
February 25, 2008 at 11:42 AM #159975vizcaya
ParticipantThe ratio that I approved on was 1 to 3.75. Or a mortage of 300k loan from a 80k annual salary. For me, I would not want to try to go any higher than that ratio. We have to be able to live, and enjoy life. It would suck to be a slave to your house.
Banks will be forced to bring those ratios down, otherwise people will continue to goto into default.
February 25, 2008 at 11:42 AM #159897vizcaya
ParticipantThe ratio that I approved on was 1 to 3.75. Or a mortage of 300k loan from a 80k annual salary. For me, I would not want to try to go any higher than that ratio. We have to be able to live, and enjoy life. It would suck to be a slave to your house.
Banks will be forced to bring those ratios down, otherwise people will continue to goto into default.
February 25, 2008 at 11:42 AM #159878vizcaya
ParticipantThe ratio that I approved on was 1 to 3.75. Or a mortage of 300k loan from a 80k annual salary. For me, I would not want to try to go any higher than that ratio. We have to be able to live, and enjoy life. It would suck to be a slave to your house.
Banks will be forced to bring those ratios down, otherwise people will continue to goto into default.
February 25, 2008 at 11:42 AM #159893vizcaya
ParticipantThe ratio that I approved on was 1 to 3.75. Or a mortage of 300k loan from a 80k annual salary. For me, I would not want to try to go any higher than that ratio. We have to be able to live, and enjoy life. It would suck to be a slave to your house.
Banks will be forced to bring those ratios down, otherwise people will continue to goto into default.
February 25, 2008 at 1:17 PM #159964HLS
ParticipantDOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.
Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.
The higher your income, the more disposable income you should have.
There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.Lenders will approve people for more debt than they should take on.
Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.Your “potential outcomes” are the kind of misleading projections that the media loves.
February 25, 2008 at 1:17 PM #160040HLS
ParticipantDOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.
Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.
The higher your income, the more disposable income you should have.
There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.Lenders will approve people for more debt than they should take on.
Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.Your “potential outcomes” are the kind of misleading projections that the media loves.
February 25, 2008 at 1:17 PM #159956HLS
ParticipantDOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.
Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.
The higher your income, the more disposable income you should have.
There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.Lenders will approve people for more debt than they should take on.
Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.Your “potential outcomes” are the kind of misleading projections that the media loves.
February 25, 2008 at 1:17 PM #159942HLS
ParticipantDOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.
Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.
The higher your income, the more disposable income you should have.
There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.Lenders will approve people for more debt than they should take on.
Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.Your “potential outcomes” are the kind of misleading projections that the media loves.
February 25, 2008 at 1:17 PM #159650HLS
ParticipantDOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.
Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.
The higher your income, the more disposable income you should have.
There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.Lenders will approve people for more debt than they should take on.
Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.Your “potential outcomes” are the kind of misleading projections that the media loves.
February 25, 2008 at 2:09 PM #159682Ex-SD
ParticipantI haven’t had a mortgage in over 20 years and never had a HELOC. My wife and I are extremely conservative with our money and when we bought homes with a mortgage, we never bit off more than about 25% of our income for a mortgage payment. I’ve seen too many people lose their jobs, get divorces, have medical hardships, etc. and I always had the mindset that I wasn’t going to ever let a house put me in a financial bind. When we lived in SD, we eventually owned our primary residence and a really nice second home that we rented out……we owned both free and clear. My point is that many financial genius’s will tell you to leverage, leverage, leverage……………but leverage can easily land you in the poor house. Use common sense when getting a mortgage.
February 25, 2008 at 2:09 PM #159978Ex-SD
ParticipantI haven’t had a mortgage in over 20 years and never had a HELOC. My wife and I are extremely conservative with our money and when we bought homes with a mortgage, we never bit off more than about 25% of our income for a mortgage payment. I’ve seen too many people lose their jobs, get divorces, have medical hardships, etc. and I always had the mindset that I wasn’t going to ever let a house put me in a financial bind. When we lived in SD, we eventually owned our primary residence and a really nice second home that we rented out……we owned both free and clear. My point is that many financial genius’s will tell you to leverage, leverage, leverage……………but leverage can easily land you in the poor house. Use common sense when getting a mortgage.
February 25, 2008 at 2:09 PM #159991Ex-SD
ParticipantI haven’t had a mortgage in over 20 years and never had a HELOC. My wife and I are extremely conservative with our money and when we bought homes with a mortgage, we never bit off more than about 25% of our income for a mortgage payment. I’ve seen too many people lose their jobs, get divorces, have medical hardships, etc. and I always had the mindset that I wasn’t going to ever let a house put me in a financial bind. When we lived in SD, we eventually owned our primary residence and a really nice second home that we rented out……we owned both free and clear. My point is that many financial genius’s will tell you to leverage, leverage, leverage……………but leverage can easily land you in the poor house. Use common sense when getting a mortgage.
February 25, 2008 at 2:09 PM #159996Ex-SD
ParticipantI haven’t had a mortgage in over 20 years and never had a HELOC. My wife and I are extremely conservative with our money and when we bought homes with a mortgage, we never bit off more than about 25% of our income for a mortgage payment. I’ve seen too many people lose their jobs, get divorces, have medical hardships, etc. and I always had the mindset that I wasn’t going to ever let a house put me in a financial bind. When we lived in SD, we eventually owned our primary residence and a really nice second home that we rented out……we owned both free and clear. My point is that many financial genius’s will tell you to leverage, leverage, leverage……………but leverage can easily land you in the poor house. Use common sense when getting a mortgage.
-
AuthorPosts
- You must be logged in to reply to this topic.