Quote:
Originally Posted by rd_aaron
What you can be approved for, and what you can actually afford are not the same.
My fiancée and I are 24 years old. Using your same numbers for heating, property taxes, debt payments, interest rate, and amortization, but using our gross income, CHMC says I can afford a $780,000 house if I bring $40,000 as a down payment. There is NO way we could afford anything close to that.
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Which is a great point. I put my income into it and figured I'd have to eat plain rice and get a second job to make the payments if I took their max. But maybe then instead of fussing with amortizations and HELOCs they should change the amount of mortgage they'll insure for a person.
If that "average" couple could only get a 400k mortgage instead of a 500k mortgage they'd be better able to afford it and it would definitely have a moderating effect on the housing market.