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CA renter
ParticipantRight now a basic 4S McMansion, a Chanteclair or a lightly optioned Silhouette, costs around 650K. You need 130K income to prequalify with 20% down. (I actually ran the numbers with a sales agent at Silhouette in early September, she told me that they’d want to see debt to income less than 40% based on 6.5% interest rate)
—————–Breaking out my trusty calculator:
$650K purchase price
-$130K 20% down payment
= $520K mortgage at 6.5% (if you’re lucky)$520K @ 6.5% = P&I of $3286.75/mo
Property tax @ 1.25% of $650K = $677.08/mo
Insurance ~ $150/mo
Total monthly payment of $4113.83 which is 38% of gross income.
This does not include Mello-Roos, HOAs, maintenance or other debt.
The approximate tax benefit in a best-case scenario is $1047.90 (if calculating a 30% rate, which is generous for the tax benefit), for an effective payment of $3065.93.
——————We earn about that amount, and I would NEVER commit us to such a monthly burden — especially one we couldn’t get out of if prices tanked further (or we’d lose our down payment…or worse).
Maybe I’m too conservative, but I think housing costs should be no more than 30% of one’s NET income, after taxes; and that assumes the family doesn’t have any other major obligations (student or other loans, unusual medical concerns, hobbies, etc.).
The formulas used by the lending institutions to determine affordability are based on the “olden days” when people had defined-benefit pension plans, employer-covered healthcare, more stable jobs, lower inflation and a better economy. Anyone who trusts these numbers is looking to be the next foreclosure “victim”, IMHO.
ParticipantRight now a basic 4S McMansion, a Chanteclair or a lightly optioned Silhouette, costs around 650K. You need 130K income to prequalify with 20% down. (I actually ran the numbers with a sales agent at Silhouette in early September, she told me that they’d want to see debt to income less than 40% based on 6.5% interest rate)
—————–Breaking out my trusty calculator:
$650K purchase price
-$130K 20% down payment
= $520K mortgage at 6.5% (if you’re lucky)$520K @ 6.5% = P&I of $3286.75/mo
Property tax @ 1.25% of $650K = $677.08/mo
Insurance ~ $150/mo
Total monthly payment of $4113.83 which is 38% of gross income.
This does not include Mello-Roos, HOAs, maintenance or other debt.
The approximate tax benefit in a best-case scenario is $1047.90 (if calculating a 30% rate, which is generous for the tax benefit), for an effective payment of $3065.93.
——————We earn about that amount, and I would NEVER commit us to such a monthly burden — especially one we couldn’t get out of if prices tanked further (or we’d lose our down payment…or worse).
Maybe I’m too conservative, but I think housing costs should be no more than 30% of one’s NET income, after taxes; and that assumes the family doesn’t have any other major obligations (student or other loans, unusual medical concerns, hobbies, etc.).
The formulas used by the lending institutions to determine affordability are based on the “olden days” when people had defined-benefit pension plans, employer-covered healthcare, more stable jobs, lower inflation and a better economy. Anyone who trusts these numbers is looking to be the next foreclosure “victim”, IMHO.
ParticipantRight now a basic 4S McMansion, a Chanteclair or a lightly optioned Silhouette, costs around 650K. You need 130K income to prequalify with 20% down. (I actually ran the numbers with a sales agent at Silhouette in early September, she told me that they’d want to see debt to income less than 40% based on 6.5% interest rate)
—————–Breaking out my trusty calculator:
$650K purchase price
-$130K 20% down payment
= $520K mortgage at 6.5% (if you’re lucky)$520K @ 6.5% = P&I of $3286.75/mo
Property tax @ 1.25% of $650K = $677.08/mo
Insurance ~ $150/mo
Total monthly payment of $4113.83 which is 38% of gross income.
This does not include Mello-Roos, HOAs, maintenance or other debt.
The approximate tax benefit in a best-case scenario is $1047.90 (if calculating a 30% rate, which is generous for the tax benefit), for an effective payment of $3065.93.
——————We earn about that amount, and I would NEVER commit us to such a monthly burden — especially one we couldn’t get out of if prices tanked further (or we’d lose our down payment…or worse).
Maybe I’m too conservative, but I think housing costs should be no more than 30% of one’s NET income, after taxes; and that assumes the family doesn’t have any other major obligations (student or other loans, unusual medical concerns, hobbies, etc.).
The formulas used by the lending institutions to determine affordability are based on the “olden days” when people had defined-benefit pension plans, employer-covered healthcare, more stable jobs, lower inflation and a better economy. Anyone who trusts these numbers is looking to be the next foreclosure “victim”, IMHO.
ParticipantRight now a basic 4S McMansion, a Chanteclair or a lightly optioned Silhouette, costs around 650K. You need 130K income to prequalify with 20% down. (I actually ran the numbers with a sales agent at Silhouette in early September, she told me that they’d want to see debt to income less than 40% based on 6.5% interest rate)
—————–Breaking out my trusty calculator:
$650K purchase price
-$130K 20% down payment
= $520K mortgage at 6.5% (if you’re lucky)$520K @ 6.5% = P&I of $3286.75/mo
Property tax @ 1.25% of $650K = $677.08/mo
Insurance ~ $150/mo
Total monthly payment of $4113.83 which is 38% of gross income.
This does not include Mello-Roos, HOAs, maintenance or other debt.
The approximate tax benefit in a best-case scenario is $1047.90 (if calculating a 30% rate, which is generous for the tax benefit), for an effective payment of $3065.93.
——————We earn about that amount, and I would NEVER commit us to such a monthly burden — especially one we couldn’t get out of if prices tanked further (or we’d lose our down payment…or worse).
Maybe I’m too conservative, but I think housing costs should be no more than 30% of one’s NET income, after taxes; and that assumes the family doesn’t have any other major obligations (student or other loans, unusual medical concerns, hobbies, etc.).
The formulas used by the lending institutions to determine affordability are based on the “olden days” when people had defined-benefit pension plans, employer-covered healthcare, more stable jobs, lower inflation and a better economy. Anyone who trusts these numbers is looking to be the next foreclosure “victim”, IMHO.
ParticipantRight now a basic 4S McMansion, a Chanteclair or a lightly optioned Silhouette, costs around 650K. You need 130K income to prequalify with 20% down. (I actually ran the numbers with a sales agent at Silhouette in early September, she told me that they’d want to see debt to income less than 40% based on 6.5% interest rate)
—————–Breaking out my trusty calculator:
$650K purchase price
-$130K 20% down payment
= $520K mortgage at 6.5% (if you’re lucky)$520K @ 6.5% = P&I of $3286.75/mo
Property tax @ 1.25% of $650K = $677.08/mo
Insurance ~ $150/mo
Total monthly payment of $4113.83 which is 38% of gross income.
This does not include Mello-Roos, HOAs, maintenance or other debt.
The approximate tax benefit in a best-case scenario is $1047.90 (if calculating a 30% rate, which is generous for the tax benefit), for an effective payment of $3065.93.
——————We earn about that amount, and I would NEVER commit us to such a monthly burden — especially one we couldn’t get out of if prices tanked further (or we’d lose our down payment…or worse).
Maybe I’m too conservative, but I think housing costs should be no more than 30% of one’s NET income, after taxes; and that assumes the family doesn’t have any other major obligations (student or other loans, unusual medical concerns, hobbies, etc.).
The formulas used by the lending institutions to determine affordability are based on the “olden days” when people had defined-benefit pension plans, employer-covered healthcare, more stable jobs, lower inflation and a better economy. Anyone who trusts these numbers is looking to be the next foreclosure “victim”, IMHO.
ParticipantFrom 4plexowner’s link:
Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.
http://www.bloomberg.com/apps/news?pid=2…
———————–I was watching this news well before the market opened, and watched the futures tanking through the night. After the opening bell (and before the impasse was made public), the indexes were already quickly decending as did the overseas markets.
They are trying to blame the “record drop in the markets” on the Republicans who voted against the bailout. This is not true.
With all due respect, $700 billion would literally vaporize into thin air within a few weeks, and taxpayers would be that much poorer.
If I believed this would actually save our economy, even I would vote for it; but it will not help our economy nor assist anyone who will need a job in the next few months/years.
Let’s keep up the good work and keep calling our representatives (also might help if we called the guard dogs who kept this from passing…they need to be made aware of our support, too).
ParticipantFrom 4plexowner’s link:
Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.
http://www.bloomberg.com/apps/news?pid=2…
———————–I was watching this news well before the market opened, and watched the futures tanking through the night. After the opening bell (and before the impasse was made public), the indexes were already quickly decending as did the overseas markets.
They are trying to blame the “record drop in the markets” on the Republicans who voted against the bailout. This is not true.
With all due respect, $700 billion would literally vaporize into thin air within a few weeks, and taxpayers would be that much poorer.
If I believed this would actually save our economy, even I would vote for it; but it will not help our economy nor assist anyone who will need a job in the next few months/years.
Let’s keep up the good work and keep calling our representatives (also might help if we called the guard dogs who kept this from passing…they need to be made aware of our support, too).
ParticipantFrom 4plexowner’s link:
Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.
http://www.bloomberg.com/apps/news?pid=2…
———————–I was watching this news well before the market opened, and watched the futures tanking through the night. After the opening bell (and before the impasse was made public), the indexes were already quickly decending as did the overseas markets.
They are trying to blame the “record drop in the markets” on the Republicans who voted against the bailout. This is not true.
With all due respect, $700 billion would literally vaporize into thin air within a few weeks, and taxpayers would be that much poorer.
If I believed this would actually save our economy, even I would vote for it; but it will not help our economy nor assist anyone who will need a job in the next few months/years.
Let’s keep up the good work and keep calling our representatives (also might help if we called the guard dogs who kept this from passing…they need to be made aware of our support, too).
ParticipantFrom 4plexowner’s link:
Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.
http://www.bloomberg.com/apps/news?pid=2…
———————–I was watching this news well before the market opened, and watched the futures tanking through the night. After the opening bell (and before the impasse was made public), the indexes were already quickly decending as did the overseas markets.
They are trying to blame the “record drop in the markets” on the Republicans who voted against the bailout. This is not true.
With all due respect, $700 billion would literally vaporize into thin air within a few weeks, and taxpayers would be that much poorer.
If I believed this would actually save our economy, even I would vote for it; but it will not help our economy nor assist anyone who will need a job in the next few months/years.
Let’s keep up the good work and keep calling our representatives (also might help if we called the guard dogs who kept this from passing…they need to be made aware of our support, too).
ParticipantFrom 4plexowner’s link:
Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.
http://www.bloomberg.com/apps/news?pid=2…
———————–I was watching this news well before the market opened, and watched the futures tanking through the night. After the opening bell (and before the impasse was made public), the indexes were already quickly decending as did the overseas markets.
They are trying to blame the “record drop in the markets” on the Republicans who voted against the bailout. This is not true.
With all due respect, $700 billion would literally vaporize into thin air within a few weeks, and taxpayers would be that much poorer.
If I believed this would actually save our economy, even I would vote for it; but it will not help our economy nor assist anyone who will need a job in the next few months/years.
Let’s keep up the good work and keep calling our representatives (also might help if we called the guard dogs who kept this from passing…they need to be made aware of our support, too).
September 29, 2008 at 5:37 PM in reply to: Off Topic Video clip of Maxine Waters claiming GSE’s were doing fine 2004 #277731ParticipantThey were not okay in 2004 or 2003 or 2002 or 2001. The regulators and certain legislators were trying to warn about their leverage years ago.
Though I tend to lean left in most cases, I must admit that the Republicans got it right on this one, and also on the vote today.
September 29, 2008 at 5:37 PM in reply to: Off Topic Video clip of Maxine Waters claiming GSE’s were doing fine 2004 #277993ParticipantThey were not okay in 2004 or 2003 or 2002 or 2001. The regulators and certain legislators were trying to warn about their leverage years ago.
Though I tend to lean left in most cases, I must admit that the Republicans got it right on this one, and also on the vote today.
September 29, 2008 at 5:37 PM in reply to: Off Topic Video clip of Maxine Waters claiming GSE’s were doing fine 2004 #278006ParticipantThey were not okay in 2004 or 2003 or 2002 or 2001. The regulators and certain legislators were trying to warn about their leverage years ago.
Though I tend to lean left in most cases, I must admit that the Republicans got it right on this one, and also on the vote today.
September 29, 2008 at 5:37 PM in reply to: Off Topic Video clip of Maxine Waters claiming GSE’s were doing fine 2004 #278043ParticipantThey were not okay in 2004 or 2003 or 2002 or 2001. The regulators and certain legislators were trying to warn about their leverage years ago.
Though I tend to lean left in most cases, I must admit that the Republicans got it right on this one, and also on the vote today.
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