Mortgage to Income

[Gohabsgo_IHB]

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?

 

[qwerty_IHB]

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?

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

 

[Gohabsgo_IHB]

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!

 

[Gohabsgo_IHB]

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?

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

Before or after interest rate deduction?

 

[freedomCM_IHB]

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!

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