- This topic has 121 replies, 14 voices, and was last updated 16 years, 10 months ago by
equalizer.
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February 19, 2008 at 5:49 PM #156170February 19, 2008 at 5:49 PM #156245
temeculaguy
ParticipantI agree with sdrealtor 3x income is the high water mark, 2x income for the loan is ideal, there is a lot more things in life that require money depending on your situation you may want to have less house and more disposable income.
February 19, 2008 at 7:58 PM #155910(former)FormerSanDiegan
ParticipantI agree 3x your income may be too high for many, depending on your circumstances and other debts. For example, a young professional or newly minted medical doctor may have a significant chunk of debt in terms of student loans. Young parents may be saddled with alot of expenses related to raising small children, etc. Likewise if you have significantly higher income/assets later in life you may be able to handle more housing debt relative to your income.
For first-time buyers I would assume most could handle somewhere in the range of 38-38% of their income towards the combination of debt and housing PITI.February 19, 2008 at 7:58 PM #156195ParticipantI agree 3x your income may be too high for many, depending on your circumstances and other debts. For example, a young professional or newly minted medical doctor may have a significant chunk of debt in terms of student loans. Young parents may be saddled with alot of expenses related to raising small children, etc. Likewise if you have significantly higher income/assets later in life you may be able to handle more housing debt relative to your income.
For first-time buyers I would assume most could handle somewhere in the range of 38-38% of their income towards the combination of debt and housing PITI.February 19, 2008 at 7:58 PM #156196ParticipantI agree 3x your income may be too high for many, depending on your circumstances and other debts. For example, a young professional or newly minted medical doctor may have a significant chunk of debt in terms of student loans. Young parents may be saddled with alot of expenses related to raising small children, etc. Likewise if you have significantly higher income/assets later in life you may be able to handle more housing debt relative to your income.
For first-time buyers I would assume most could handle somewhere in the range of 38-38% of their income towards the combination of debt and housing PITI.February 19, 2008 at 7:58 PM #156215ParticipantI agree 3x your income may be too high for many, depending on your circumstances and other debts. For example, a young professional or newly minted medical doctor may have a significant chunk of debt in terms of student loans. Young parents may be saddled with alot of expenses related to raising small children, etc. Likewise if you have significantly higher income/assets later in life you may be able to handle more housing debt relative to your income.
For first-time buyers I would assume most could handle somewhere in the range of 38-38% of their income towards the combination of debt and housing PITI.February 19, 2008 at 7:58 PM #156287ParticipantI agree 3x your income may be too high for many, depending on your circumstances and other debts. For example, a young professional or newly minted medical doctor may have a significant chunk of debt in terms of student loans. Young parents may be saddled with alot of expenses related to raising small children, etc. Likewise if you have significantly higher income/assets later in life you may be able to handle more housing debt relative to your income.
For first-time buyers I would assume most could handle somewhere in the range of 38-38% of their income towards the combination of debt and housing PITI.February 19, 2008 at 8:46 PM #155950jpinpb
ParticipantRe: Calculations
Where are you purchasing these homes and coming up w/these calculations?
If you purchase a condo, please don’t forget to include the HOAs, some are quite pricey.
If you are purchasing in a semi-new or new neighborhood, don’t forget to add in the calculation the Mello Rouse.
February 19, 2008 at 8:46 PM #156233ParticipantRe: Calculations
Where are you purchasing these homes and coming up w/these calculations?
If you purchase a condo, please don’t forget to include the HOAs, some are quite pricey.
If you are purchasing in a semi-new or new neighborhood, don’t forget to add in the calculation the Mello Rouse.
February 19, 2008 at 8:46 PM #156237ParticipantRe: Calculations
Where are you purchasing these homes and coming up w/these calculations?
If you purchase a condo, please don’t forget to include the HOAs, some are quite pricey.
If you are purchasing in a semi-new or new neighborhood, don’t forget to add in the calculation the Mello Rouse.
February 19, 2008 at 8:46 PM #156253ParticipantRe: Calculations
Where are you purchasing these homes and coming up w/these calculations?
If you purchase a condo, please don’t forget to include the HOAs, some are quite pricey.
If you are purchasing in a semi-new or new neighborhood, don’t forget to add in the calculation the Mello Rouse.
February 19, 2008 at 8:46 PM #156328ParticipantRe: Calculations
Where are you purchasing these homes and coming up w/these calculations?
If you purchase a condo, please don’t forget to include the HOAs, some are quite pricey.
If you are purchasing in a semi-new or new neighborhood, don’t forget to add in the calculation the Mello Rouse.
February 19, 2008 at 9:36 PM #156025equalizer
ParticipantIf everyone went with < 3X income, half the sales from this century wouldn't have happened!
Most calculators allow a total debt-to-income ratio of no more than 36 percent. And home payment to-income ratio of 28% for our conservative estimate, and 33 percent for the aggressive one. In CA, 40% and 50% ratios were routinely used and that's what helped cause home prices to double from 2001 to 2005, not the common notion that QCOM employees were completely responsible for jump.
February 19, 2008 at 9:36 PM #156307ParticipantIf everyone went with < 3X income, half the sales from this century wouldn't have happened!
Most calculators allow a total debt-to-income ratio of no more than 36 percent. And home payment to-income ratio of 28% for our conservative estimate, and 33 percent for the aggressive one. In CA, 40% and 50% ratios were routinely used and that's what helped cause home prices to double from 2001 to 2005, not the common notion that QCOM employees were completely responsible for jump.
February 19, 2008 at 9:36 PM #156311ParticipantIf everyone went with < 3X income, half the sales from this century wouldn't have happened!
Most calculators allow a total debt-to-income ratio of no more than 36 percent. And home payment to-income ratio of 28% for our conservative estimate, and 33 percent for the aggressive one. In CA, 40% and 50% ratios were routinely used and that's what helped cause home prices to double from 2001 to 2005, not the common notion that QCOM employees were completely responsible for jump.
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