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Average income is 68k, average home price is 408k... According to a google search on how much can a person afford for a home at 60k... you get this: > The usu
by gremlinsinc 5y ago
Average income is 68k, average home price is 408k...
According to a google search on how much can a person afford for a home at 60k... you get this:
> The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. That's a $120,000 to $150,000 mortgage at $60,000.
Can you please tell me how one gets homes at these rates? Because I don't see any available, not here in Utah which isn't even a huge COL state... or anywhere else..
Edit..so to afford the AVERAGE home in America you'd need at least 163k per year annual salary.
- rufus_foreman 5y ago>> so to afford the AVERAGE home in America You're assuming they have no equity. Close to 40% of homeowners have their houses paid off. If they want to move up to a more expensive house, the 68K income needs to finance the difference in price between their current house and the new one, not the entire amount. If you're buying your first home on 68K income, you are not going to be buying a 400K house. You're going to be buying a "starter home" with a 5% down payment. Or even 3%.
- silisili 5y agoLoan places are giving out loans for over 4x gross income. Yet people keep saying this is nothing like 2008 because the loans aren't 'knowingly bad'.