[QUOTE=1stLand;2674254]
Quote:
Originally Posted by AFireInside
This is where things get deceiving.
Are they purchasing a $400,000 home or are they getting a Mortgage worth $400,000?
If the couple has existing equity to pull out of a condo or two (they might have had separate residences they owned before marriage) or a home, then common sense would dictate they would put that towards a home.
So if $100,000 downpayment was used, $300,000 mortgage would remain and then you would be closer to 3x income.
Dual income = dual savings prior to marriage most likely.
I am not advocating living beyond your means, but people will make sacrifices in other areas of their life to ensure they get a home in an area they and their children can feel safe and comfortable in.
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Once again you are trying to paint a rosey picture. A VERY LARGE portion of mortgages taken out from 2006 - 2008 were ZERO down mortgages. People buying $400,000 properties with no money down.
The dual savings prior to marriage isn't always the case either. In fact most people making $45,000/yr on their own would have a VERY VERY difficult time saving any significant amount of money prior to marriage. Many I know who bought put nothing down because they didn't have much saved.
Sure what you are saying can definitely be the case, it certainly isn't the norm. If it was there would be no need to offer zero down mortgages, or 5% down mortgages as is the case right now.