Skip to main content

View Diary: Pete Peterson Group: "$250k a Year Is Not Easy Street" (317 comments)

Comment Preferences

  •  No... (0+ / 0-)

    ...when I read the housing horror stories, I saw multiple instances of people taking on adjustable rate mortgages where the starter payment was over half of the borrower's gross income.

    A quarter of gross income going to a house payment (PITI) for a fixed rate mortgage is very realistic for many people, as I already wrote.  Note that I don't claim it's a good idea for everyone, because different people have different financial situations.  For a single person or couple without children who have otherwise low (or no) debt, it's very reasonable.  If, on the other hand, you have multiple dependent children, large student loans to pay off, or some sort of other large fixed expenses, then -- yes -- a lower ratio would be wise.

    There's a degree of sublety here -- different people have different circumstances that may impact the percentage of their budget that can go towards housing -- that you seem to be missing...

    Political Compass: -6.75, -3.08

    by TexasTom on Wed Jul 06, 2011 at 07:38:44 PM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site