Mortgage to Income

Gohabsgo_IHB

Gohabsgo_IHB

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I read a few times about the 28% of gross rule or 40% of net, but I'm questionning if that's what people usually do.



Are these percentages applciable to mortgage payment or total cost to own (HOA, Mello-Roos, Taxes, insurance, etc.)?



Is that what most people do now or what do you typically see?
 
[quote author="Roo" date=1249702375]I read a few times about the 28% of gross rule or 40% of net, but I'm questionning if that's what people usually do.



Are these percentages applciable to mortgage payment or total cost to own (HOA, Mello-Roos, Taxes, insurance, etc.)?



Is that what most people do now or what do you typically see?</blockquote>


i think those %'s apply to total cost to own (principal, interest, insurance, taxes (including mello-roos) and HOA)
 
Another question: What is a typical Loan to income (assuming 20% down). I guess interest rate will be a big factor as you currently can get more than if interest rates are at 8%.



I'm coming up with a factor of 3.0....sounds about right? Why did I have 4.0 in mind...way to set expectations too high!
 
[quote author="qwerty" date=1249702780][quote author="Roo" date=1249702375]I read a few times about the 28% of gross rule or 40% of net, but I'm questionning if that's what people usually do.



Are these percentages applciable to mortgage payment or total cost to own (HOA, Mello-Roos, Taxes, insurance, etc.)?



Is that what most people do now or what do you typically see?</blockquote>


i think those %'s apply to total cost to own (principal, interest, insurance, taxes (including mello-roos) and HOA)</blockquote>


Before or after interest rate deduction?
 
[quote author="Roo" date=1249704554]Another question: What is a typical Loan to income (assuming 20% down). I guess interest rate will be a big factor as you currently can get more than if interest rates are at 8%.



I'm coming up with a factor of 3.0....sounds about right? Why did I have 4.0 in mind...way to set expectations too high!</blockquote>


3X is considered "sane", 4X is where CA has been for years.
 
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