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What does that comprise in mortgage terms? Very few people own their home outright - it's the affordability of the mortgage that really matters.
by AndrewDucker 17y ago
What does that comprise in mortgage terms?
Very few people own their home outright - it's the affordability of the mortgage that really matters.
- aristus 17y ago40 years ago my parents purchased a house on a 7-year mortgage. At the time dad and mom were employed as a carpenter and a social worker, respectively. The price was about 3X their yearly income, they put up 30% up front, and they paid off the rest in 5 years. BTW, it was large enough to raise 4 kids and a flock of poultry. Today houses where I live cost 8-15X (!!) my family's yearly income, and the standard mortgage term is 30 years. Part off this is the shift from farm-country Texas to geekville San Francisco, but the other part is that homes are much more expensive compared to incomes than they used to be.