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> At the traditional 3x debt to gross income metric Can someone give more information/source on this?
by ctb_mg 13y ago
> At the traditional 3x debt to gross income metric
Can someone give more information/source on this?
- gaius 13y agoTraditionally, a mortgage would be 10% deposit + 3x your salary. That's what I did. In retrospect I should have done what everyone else did, 0% deposit and 5 or 6x salary, then let the govt bail me out by artificially holding interest rates so low. People who behaved irresponsibly made out like bandits, and honest folk are seeing their savings destroyed.
- prpatel 13y ago+1 What's the point in saving money when it gets eroded by near 0% interest saving returns combined with continuing inflation?
- saalweachter 13y agoTraditionally a mortgage would be 20% down.
- ctb_mg 13y agoDid some research. To answer my own question: DTI is a debt-to-income ratio that is considered during mortgage negotiations. It's desirable to have less than a 36% DTI such that your monthly debts (CC payments, mortgage, car payment, etc.) do not exceed your monthly income.