Has anyone here stretched for their primary residence?
- Thread starter JamieDimonsBalls
- Start date
You're not helping.
My mortgage is 18% of my take home. That doesn't even include the wife's income. Yes, I bought a foreclosure about 3 years after the shit melted down.
I would move but i think of that math above and early retirement and say **** no. Plus i'll sell this place and move south most likely.
What's the diversity like there?Even worse, East Side. Damn near Fishers.
Nah jdb is young. That can motivate him to hustle. Get a promotion. Overtime. Sell dirty undies online. Just make more money. Now there’s an incentive. Plus his bride will be happy
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I'd say it depends on your age and what your initial budget was. If you are both mid 40s or younger with reasonable salary growth ahead, you'd probably be fine. If it's the perfect home it may save you the trouble of her wanting to move again in 5-10 years.
If your older than 50 and pushing towards retirement and kid's college, I'd say stick to the original plan.
We have white, cream, off white, eggshell. You name it.
No. In hindsight wish I would have a decade ago pushed it a lot more out of comfort zone. Was still fairly early in career and income went up exponentially. But who could have seen 2.5% mortgage refis coming available on top of that.
Now is probably the worst time to buy a house in my adult life, unless you are paying cash. High rates, high prices and miniscule inventory.
Don't know where you see career and earnings going forward, but unless you expect them to grow significantly, I wouldn't do it. Being house poor doesn't sound fun. Plus more expensive home means higher costs on everything else (renovations, repairs, furniture, etc....), as you don't put cheap shit in an expensive home.
I considered a double wide but the property taxes put it out of reach.
Yeah I think my parents had like a 12% mortgage at one point in late 70s/ early 80s.
True, but my first house was 120,000 and a 1200 dollar payment back then. It was a middle of the road CP Morgan type (style) of home. That was in Colorado. I bet that house is worth a half a mil now.
Were they really?
I ran some quick numbers while sitting here at my desk. Looking at numbers from 40 years ago vs today.
Median home price in US
$77k (1983)
$415k (2023)
Let's assume a 20% down payment
Monthly payment
12% rate - $633
7% rate - $2208
Inflation adjusted payment:
1983 : $1942
2023: $2208
So yes, sitting here today it is more expensive, by about 10%. At 6% mortgage rates, it would be basically the same as 40 years ago.
God I used to go to all the Buffs games. We couldn't get out of Boulder quick enough. Don't get me started on the west stands in Folsom. Stuffy rat bastards. Denver was so much more happinin back then.
Where in CO and what year was this? Half a mil might be low balling it.
Move north to Sheridan. Get you some land, a few chickens, and pigs.
Then factor in median household income. 25k in 83 vs 80k in 23. First two cites I found. I assume ballpark close. 3x income in 83 vs 5x in 23
This is actually wrong. As in 1983 rates were 13.75%
So inflation adjusted payment was $2200....exactly what it is today. Pretty amazing.
Lakewood. 87ish I'm trying to find it. I was in and out of it quick. Divorce, and job took me to Atlanta where I met current wife
. My ex moved out.The problem is wages haven’t kept up. 3x income today is a $240k house. Good luck there
Not true based upon the nationwide numbers I just posted.
Median household income:
1983: $25k
2023: $85k
Median house payment would be 3x what it was in 1983. ($717 vs $2200). But median household income is up more than 3x since 1983.
You're ignoring interest rate. 13.75 vs 7%.
Jeeezuz now you've got me on a goose chase.
. I remember the 711 down the street and looking across into a field where prairie dogs lived. Trying to find those prairie dogs. okay so i reserve the right to be wrong as we are delving into math. i'm not going into payment. i'm going into the cost of a home (and qualifying for same based on dti etc). the median home in 83 was three times the amount of the median household income. today it is five times the amount of the median household income.
The part you quoted is not inflation adjusted, that's the point.
$700 in 1983 vs $2200 in 2023. Basically 3x
Household income up more than 3x. $85k vs $25k.
A multiple of income is not how mortgage qualifying is done. It's monthly payment to income.... and monthly payments are obviously extremely interest rate sensitive
Call me Johnny Bench. I’d go gay to get Brad back. Yeah…..I f#cking said it🥰No, no. Someday I'll join Brad on the mountain.
Got it. But while the monthly payment has stayed the same, comparatively, income has lagged behind.
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