I still find it interesting that the assumption of 28-36% of gross income will go towards housing. Why is it that lending institutions use GROSS? Why not NET? Why do most lenders not take into consideration actual cost of living expenses other than loans?
I've also read, and Im still looking for the article as its been a couple weeks ago, that current lenders are upping the ante and going as high as 41%. What have yall heard or run into? Ive also read/heard rumblings of even longer amortization time up to 50yrs. Holy cow! Why? (yeah yeah I know keeping up with the Jonses but srsly)
Which leads me to this, If a two income family makes apx 102k gross (median US income is 51k yr), usual bills/debts etc, a 290k home is right at the 28% mark:
Monthly Principal & Interest$1,515.56
Monthly Extra Payment$0.00
PMI (till 17-Jan 2019)$130.26
Total Monthly Payment$2,032.62
Who in the hell can afford 2k a month for 30yrs? Why would you?
I hear people say that that's what the market is dictating, given the area. Then why won't you move to an area that doesn't have such a high property value?
Ok, all that being said, yes Im looking to move to an area that is known for property being high. TBD at this point. But my questions still stand...