LOL. According to the mortgage consultant I spoke to, I can afford a $2024/mo mortgage

NickB79

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Wed Jun-17-09 12:00 PM
Original message

LOL. According to the mortgage consultant I spoke to, I can afford a $2024/mo mortgage

When putting 3.5% down with an FHA loan.

Just to be clear, $2024/mo would be OVER 50% OF MY NET MONTHLY INCOME!!! :wtf:

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mike_c

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Wed Jun-17-09 12:03 PM
Response to Original message

1. yep-- for as long as the bank could mine your income for profit...

...until you're exhausted and broke. Such a deal!

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wndycty

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Wed Jun-17-09 12:03 PM
Response to Original message

2. Even now?

After the mortgage crisis?

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NickB79

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Wed Jun-17-09 03:04 PM
Response to Reply #2

13. That was what they told me LAST WEEK

And when I told my mom this story (since she is also looking to buy a house), she told me that her bank tried to sell her an ARM with a balloon payment after 5 years just this month!

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flvegan

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Wed Jun-17-09 12:05 PM
Response to Original message

3. I think many mortgage consultants took a special "Finance in a Vacuum" course.

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Sub Atomic

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Wed Jun-17-09 12:06 PM
Response to Original message

4. You know, they aren't making any more land.

It's a new paradigm, and everybody who doesn't buy real estate now will be priced out of the market forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

Renters, and anybody born in a future generation, will not be able to afford a $10,000,000 starter home in 15 years. They will live in tent cities and Hondas.

This asset bubble is different from all of the others in human history -- it will never slow down or pop. The gains are permanent.

:rofl:

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taught_me_patience

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Wed Jun-17-09 12:09 PM
Response to Original message

5. This seems reasonable

The HUD affordability guidlines are 30% of gross income. If your net is 4k/month, then your gross is likely 6k/mo. Therefore, a mortgage of 2k/mo is 30% of your gross. I've spent 30% of my gross on rent. It's difficult but not impossible.

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question everything

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Wed Jun-17-09 12:26 PM
Response to Original message

6. That's because they look at gross income, not net

Edited on Wed Jun-17-09 12:28 PM by question everything

supposedly your net can increase once you own a house and you can deduct interest and property taxes, thus reducing your tax liability.

And, if you do get the house and/or the mortgage, you will change your deductions - if you are en employee - so you don't loan the government several thousands of dollars that will be paid back next April.

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CreekDog

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Wed Jun-17-09 12:59 PM
Response to Original message

7. That's about what I made and paid when I bought and I didn't have any problem

One of my biweekly paychecks pays the mortgage, the other goes for everything else. :shrug:

With the tax write offs for interest, it was better on a monthly basis than renting and on the upside, it hasn't gone up in price and I haven't had to move in 5 years.

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PVnRT

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Wed Jun-17-09 01:02 PM
Response to Original message

8. We very clearly specified up front we wanted $1000 or less a month

Mortgage PLUS taxes and mortgage insurance.

I would be willing to bet that number you got quoted is for mortgage only. A house that costs that much would have a shit-ton more per month taxes added on to it.

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tjwash

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Wed Jun-17-09 01:07 PM
Response to Original message

9. Don't worry...they'll also give you a second designed to suck out any equity you accrue.

Aren't we all so lucky the banks are on top of stuff?

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JerseygirlCT

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Wed Jun-17-09 01:15 PM
Response to Original message

10. Remember the days when you could forget about it if you couldn't

put 20% down? And the mortgage (or rent) was not supposed to exceed 30% of your income? (I can even remember when the rule of thumb was 25%)

3.5% is just irresponsible. And allowing someone into a mortgage that will eat up 50% of income only sets people up for trouble. What happens when your income changes or disappears?

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PVnRT

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Wed Jun-17-09 01:17 PM
Response to Reply #10

11. 3.5% is an FHA-backed loan, not a bank special (n/t)

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TahitiNut

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Wed Jun-17-09 01:39 PM
Response to Original message

12. That wouldn't be unusual for PITI in California.

Edited on Wed Jun-17-09 01:40 PM by TahitiNut

:shrug: ... if you could find a house that inexpensive.

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Tierra_y_Libertad

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Wed Jun-17-09 03:11 PM
Response to Original message

14. It is. If you don't mind a rice & beans diet and putting off an operation for 30 years.

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Robbien

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Wed Jun-17-09 03:16 PM
Response to Original message

15. The Feds need the housing bubble to reinflate

and are working their butts off in order to make sure you fall for it again.

Banksters need their fees and bonuses.

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