Question: Wow, that’s a pretty scary way of doing it. I would have to assume that > there are quite a few people making that mistake though. When realtors are > telling us that we can qualify for 2 1/2 times our yearly salary on a home > loan, it seems like that would be pushing the limit for many.
Answer: Even 2 1/2 times is low. I make about 40K and that would make 2 1/2 times my income about 100K. But there are no homes available in my area for 100K, I would jump if I could find one. A tiny 800 square foot house sells for 200-250K. And there are people making not that much more than I do buying them. And I’m sure it continues as you go up the scale.
I wish I had bought a house at 2 1/2 times my income – I’d be much better off than paying rent for the same amount of time. Now there aren’t any that cost that little.
Related posts:
- Giant expensive homes everywhere
- Giant expensive homes everywhere
- Giant expensive homes everywhere
- Homes: Buy or Rent?
- Least frugal for most people??
- Avoiding PMI: Question about Home Loan
- Help on Home Loan
- Gas guzzlers rejoice!
- Selling & Buying at the same time
- can I get bad credit for owing dr. bill?
- Car Leasing?
- Buying vs Renting on Starter Home