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Housing price/income ratio

Posted by on Apr. 24, 2013 at 1:27 PM
  • 20 Replies

I just did one of those "How much house can you afford" calculators.  It said that we could "afford" a house between $275,000 and $300,00.  Personally, I think we would have to me INSANE to think we could afford a house at that price on our income.  Even when I go back to work and our income increases, I was thinking more along the lines of $175,000 tops!  That made me wonder what other people are doing.  How many times your income is the price of your house?

in lovetoddler boybaby boy


Jeremy &Shana     Jonah & Silas

by on Apr. 24, 2013 at 1:27 PM
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Replies (1-10):
dedicatedrider
by on Apr. 24, 2013 at 1:32 PM
1 mom liked this

We're waiting to close on our first house right now.  Our loan will be about two times our income, though the sales price is just short of three times our income.  Our mortgage will be $100-$200 less than what we pay in rent right now though (depending on lease length), and at minimum $400 less than rent for a place with the same number bedrooms.

babyspots17
by Bronze Member on Apr. 24, 2013 at 1:35 PM
1 mom liked this

Those calculators are so off it is crazy!  When we did one before we started looking for a house it told us we could afford a home around 350K!  We even pre-qualified for over 300k!  We ended up deciding to look in the low 200s and bought a house around 175k thank god because that still give us little extra after all other expenses. 

AjCeCeMom
by Ruby Member on Apr. 24, 2013 at 1:36 PM
1 mom liked this
We bought a house that was three times my husbands annual salary. I also work but we wanted to make sure that we could survive on one salary alone, that way we manage to save a lot, put extra on the principle and are building a good retirement.
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blueeyedpixie
by Sarah on Apr. 24, 2013 at 1:37 PM
Our income is about 170,000. The offer we just put on a house is 150,000. That is putting the mortgage at the max we have for our budget... I don't know how people afford such high mortgages?
TheJerseyGirl
by on Apr. 24, 2013 at 1:40 PM
My mortgage is so small compared to most and we still struggle! I know we qualified for 3 times as much but were lucky enough to save and then build... I don't know how people do it! I'd never want a higher mortgage so ill stay put in my less than dream hone!
SlingsAndThings
by RissaBusch on Apr. 24, 2013 at 1:41 PM
1 mom liked this

Yea those calculators are crazy.  We did one before we bought our house and it told us we could afford a 300K house.  I guess with our finances we technically could, but I don't want to spend that much on a house.

We paid 70K for ours as a foreclosure. 

Oh you who have believed, seek help through patience and prayer. Indeed, Allah is with those who are patient-


Al Quran 2-153


spamica
by Silver Member on Apr. 24, 2013 at 1:47 PM

I guess they must be trying to get people to borrow more than they can afford!  Our current house is 1.7 times our income and I don't feel like we have money to burn!

MansfieldMama
by Member on Apr. 24, 2013 at 1:59 PM

Our home is worth less than twice what we make, but we qualify for much, much more than that.  We don't want to be "house poor."  We bought our home 13 years ago and will have it paid off in less than 10 years.  That's a nice feeling.  We also love the home we have, so that's nice, too.

Jennyanne322
by Bronze Member on Apr. 24, 2013 at 2:03 PM
175,000 here would get you a studio or one bedroom condo.
aj23
by Gold Member on Apr. 24, 2013 at 2:04 PM

My yearly income is more than the purchase price of my house. The house was about 2xs my yearly income when I bought it.

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