Mortgage application volume hits multiyear low

[snail]

A 60K/year income should not buy a 320K house, even with 20% down = its still more that 4 times annual salary. Lets say 20% tax, take home about $4000/month, his mortgage with taxes is about 50% of his net (Yes, I know you should use the gross income, but let be conservative here). What am I missing?

[peterb]

6.5%, 30 year term on 256,000 is $1,608 per month, plus taxes of approx $333/month and maybe $100/month insurance. All equals $2,041/month. Usually calculated DTI ratio of 35% is before taxes. So at 40% of income, this loan may have gotten funded. Not sure as things may be a lot tighter than a couple of years ago, but possible, nonetheless.

[peterb]

6.5%, 30 year term on 256,000 is $1,608 per month, plus taxes of approx $333/month and maybe $100/month insurance. All equals $2,041/month. Usually calculated DTI ratio of 35% is before taxes. So at 40% of income, this loan may have gotten funded. Not sure as things may be a lot tighter than a couple of years ago, but possible, nonetheless.

[peterb]

6.5%, 30 year term on 256,000 is $1,608 per month, plus taxes of approx $333/month and maybe $100/month insurance. All equals $2,041/month. Usually calculated DTI ratio of 35% is before taxes. So at 40% of income, this loan may have gotten funded. Not sure as things may be a lot tighter than a couple of years ago, but possible, nonetheless.

[peterb]

6.5%, 30 year term on 256,000 is $1,608 per month, plus taxes of approx $333/month and maybe $100/month insurance. All equals $2,041/month. Usually calculated DTI ratio of 35% is before taxes. So at 40% of income, this loan may have gotten funded. Not sure as things may be a lot tighter than a couple of years ago, but possible, nonetheless.

[peterb]

6.5%, 30 year term on 256,000 is $1,608 per month, plus taxes of approx $333/month and maybe $100/month insurance. All equals $2,041/month. Usually calculated DTI ratio of 35% is before taxes. So at 40% of income, this loan may have gotten funded. Not sure as things may be a lot tighter than a couple of years ago, but possible, nonetheless.

[seattle-relo]

[quote=snail]A 60K/year income should not buy a 320K house, even with 20% down = its still more that 4 times annual salary. Lets say 20% tax, take home about $4000/month, his mortgage with taxes is about 50% of his net (Yes, I know you should use the gross income, but let be conservative here). What am I missing?[/quote]

That is high. When my son was first born we bought a 240 house with 10% down. At the time we were just living on my husband’s engineer income of about $65-70,000, it was pretty tight.

[seattle-relo]

[quote=snail]A 60K/year income should not buy a 320K house, even with 20% down = its still more that 4 times annual salary. Lets say 20% tax, take home about $4000/month, his mortgage with taxes is about 50% of his net (Yes, I know you should use the gross income, but let be conservative here). What am I missing?[/quote]

That is high. When my son was first born we bought a 240 house with 10% down. At the time we were just living on my husband’s engineer income of about $65-70,000, it was pretty tight.

[seattle-relo]

[quote=snail]A 60K/year income should not buy a 320K house, even with 20% down = its still more that 4 times annual salary. Lets say 20% tax, take home about $4000/month, his mortgage with taxes is about 50% of his net (Yes, I know you should use the gross income, but let be conservative here). What am I missing?[/quote]

That is high. When my son was first born we bought a 240 house with 10% down. At the time we were just living on my husband’s engineer income of about $65-70,000, it was pretty tight.

[seattle-relo]

[quote=snail]A 60K/year income should not buy a 320K house, even with 20% down = its still more that 4 times annual salary. Lets say 20% tax, take home about $4000/month, his mortgage with taxes is about 50% of his net (Yes, I know you should use the gross income, but let be conservative here). What am I missing?[/quote]

That is high. When my son was first born we bought a 240 house with 10% down. At the time we were just living on my husband’s engineer income of about $65-70,000, it was pretty tight.

[seattle-relo]

[quote=snail]A 60K/year income should not buy a 320K house, even with 20% down = its still more that 4 times annual salary. Lets say 20% tax, take home about $4000/month, his mortgage with taxes is about 50% of his net (Yes, I know you should use the gross income, but let be conservative here). What am I missing?[/quote]

That is high. When my son was first born we bought a 240 house with 10% down. At the time we were just living on my husband’s engineer income of about $65-70,000, it was pretty tight.

[HarryBosch]

$60K high is a guess on my part. He’s only had his degree maybe 4-5 years. It’s possible, possible that his income is as high as $70K. His income is just a guess on my part – I dont need to know. I only found out about the co-sign through my wife whose sister is my nephew’s mother.

FWIW, I know that my brother-in-law seemed worried – uncharacteristic of him – when we talked about my nephew’s purchase. Of course I didn’t know about the cosign at the time so I just passed it off. Now I understand, looking back on the conversation, about his concern.

I know my nephew and his wife are solid people and my nephew has always been of good character. We shall see what happens. Control what you can and accept what you cant – life has its own twists and turns.

[HarryBosch]

$60K high is a guess on my part. He’s only had his degree maybe 4-5 years. It’s possible, possible that his income is as high as $70K. His income is just a guess on my part – I dont need to know. I only found out about the co-sign through my wife whose sister is my nephew’s mother.

FWIW, I know that my brother-in-law seemed worried – uncharacteristic of him – when we talked about my nephew’s purchase. Of course I didn’t know about the cosign at the time so I just passed it off. Now I understand, looking back on the conversation, about his concern.

I know my nephew and his wife are solid people and my nephew has always been of good character. We shall see what happens. Control what you can and accept what you cant – life has its own twists and turns.

[HarryBosch]

$60K high is a guess on my part. He’s only had his degree maybe 4-5 years. It’s possible, possible that his income is as high as $70K. His income is just a guess on my part – I dont need to know. I only found out about the co-sign through my wife whose sister is my nephew’s mother.

FWIW, I know that my brother-in-law seemed worried – uncharacteristic of him – when we talked about my nephew’s purchase. Of course I didn’t know about the cosign at the time so I just passed it off. Now I understand, looking back on the conversation, about his concern.

I know my nephew and his wife are solid people and my nephew has always been of good character. We shall see what happens. Control what you can and accept what you cant – life has its own twists and turns.

[HarryBosch]

$60K high is a guess on my part. He’s only had his degree maybe 4-5 years. It’s possible, possible that his income is as high as $70K. His income is just a guess on my part – I dont need to know. I only found out about the co-sign through my wife whose sister is my nephew’s mother.

FWIW, I know that my brother-in-law seemed worried – uncharacteristic of him – when we talked about my nephew’s purchase. Of course I didn’t know about the cosign at the time so I just passed it off. Now I understand, looking back on the conversation, about his concern.

I know my nephew and his wife are solid people and my nephew has always been of good character. We shall see what happens. Control what you can and accept what you cant – life has its own twists and turns.

[Author]

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