Costly living

[nightfighter]

Originally Posted by The Dad Fisherman

That's not what I said, I said it costs $14 an hour to pay for that mortgage.
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14 net I believe is what you mean?

[Nebe]

Originally Posted by The Dad Fisherman

If we round up to $15 an hour and assume a third of your salary goes towards it, that means you can afford it at $45 an hour, which is well below $100 an hour.
Posted from my iPhone/Mobile device

You did it! Congrats !
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[The Dad Fisherman]

Originally Posted by nightfighter

14 net I believe is what you mean?

Yep. Which I could have been clearer on. So probably closer to $18-$19 gross.

Someone is laboring under the delusion you need to make $208,000 a year to afford it, or that for some reason people working at Micky-D's are entitled to a half million dollar home.

[Rmarsh]

Spent most of my life building homes.......right now we are finishing up a 34 lot subdivision.....all sold out in two years. Lots of first time home buyers. I have no clue as to the income these young people are making. These are not starter homes like myself and others built in the seventies, when we couldn't afford to have it all. These first time buyers today want and expect a lot more when they buy a new home. Two car garages, central ac, granite countertops, three bathrooms, hardwood floors throughout, custom kitchen... most are driving brand new vehicles to boot. In this market it would be very difficult to build/sell a basic home without the amenities above.

Kind of like poor people today as opposed to when I grew up.
Todays poor people are overweight, wear brand new clothes/shoes, have cars and cell phones, jewelry, tatoos, ebt cards...My how times have changed.

[Clammer]

GEEZ I thought I was in the political forum by mistake ><><>

buying more than you can afford put me thru my wifes final years <><><

[Jenn]

Originally Posted by Clammer

GEEZ I thought I was in the political forum by mistake ><><>

holy &$%* I thought the same thing!

[spence]

Originally Posted by The Dad Fisherman

Yep. Which I could have been clearer on. So probably closer to $18-$19 gross.

Someone is laboring under the delusion you need to make $208,000 a year to afford it, or that for some reason people working at Micky-D's are entitled to a half million dollar home.

Close to it, I think I applied the 30% after tax which raised it a bit.

480,000 principal + PMI @5% (likely much higher for a first loan) @30 years = 2577/month

10k average real estate taxes + 2k average property insurance = 12k

Monthly payment = 3,670

30% threshold = x*.30 = 3670 = 12,233/month gross

146,796/yr / 2000 hrs = 73.4 an hour gross wage.

Which is likely low as I don't think a first time home buyer with that size of a loan is even going to get 5%, so the answer is likely over 80/hr.

[Rmarsh]

The idea of a first time home buyer purchasing a $480,000 home with little or no down payment is just plain stupid. They should be looking at an older existing home at half that price.

Anyone planning to buy a home should be saving every dollar they can towards their downpayment. You dont just decide you want it and must have it......you have to save and sacrifice......and not expect it to be laid at your feet because you deserve it.

We are building new homes right now, with all the amenities, in the high 300's, and they are selling faster than we can build them. So thats $100,000 less than the example given.

[Jenn]

Originally Posted by spence

Close to it, I think I applied the 30% after tax which raised it a bit.

480,000 principal + PMI @5% (likely much higher for a first loan) @30 years = 2577/month

10k average real estate taxes + 2k average property insurance = 12k

Monthly payment = 3,670

30% threshold = x*.30 = 3670 = 12,233/month gross

146,796/yr / 2000 hrs = 73.4 an hour gross wage.

Which is likely low as I don't think a first time home buyer with that size of a loan is even going to get 5%, so the answer is likely over 80/hr.

I admittedly edited my entire grumpy old fart post.....So let's start over ....if the old rule of thumb is 30% of your income is what you can afford for mortgage it means if you make $100K a year that would equal a $$2500 a month mortgage which to me at least seems a little high since a third goes to taxes and a third to pay everything else and live on. 16 years ago we were approved for a home loan twice what we knew we could comfortably afford or roughly $350K....glad we didnt do it. Many ended up in foreclosure, bankruptcy or both, never to own the "dream".