Re:Today I asked a bank for a conventional mortgage and they...
by rsynnott on Tuesday April 12, 2022 @09:22AM
(#31002321)
Wait, really? I didn't know it had gotten that bad again; those are subprime crisis sort of numbers.
[ Parent
| on HN ]
Re:Today I asked a bank for a conventional mortgage and they...
by parkingrift on Tuesday April 12, 2022 @09:51AM
(#31002748)
Yes. However, it doesn't actually say much about affordability because interest rates drive such a large percentage of costs.
A $285,000 mortgage (ignoring taxes+fees) would be $1,126/month at 2.5% APR but $1,618/month at 5.5%. If you use "conventional" lending standards a borrower with a household income of around $39k could qualify at 2.5%, but at 5.5% the income requirement would jump up to around $55k. The ratio drops from around 7.3 to 5.1.
https://www.longtermtrends.net/home-price-median-annual-inco...