Ramsey guidance to not buy home unless 15 yr fixed, payment <25% take home

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Apr 1, 2023
6:06:59pm

Florwood Truly Addicted User

I thought, not many places in America you can do that.

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Florwood

Bio page: Florwood
Joined: Mar 10, 2010
Last login: Apr 25, 2024
Total posts: 26,554 (74 FO)

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Messages

Author

Time

Percentage of Income Used on Home Payments, by State

hamaca Political Junky

4/1/23 5:48pm

I’m at 22%. I consider myself very fortunate.

JohnnyC

4/1/23 5:53pm

16% including ins/taxes

bad84cougar

4/1/23 5:56pm

Use to be 28% about 3 years ago but with a new higher paying Job and

JohnnyC

4/1/23 6:00pm

Frustrating that he never posted the whole list that I saw.

Courtimedes

4/1/23 5:54pm

30% used to be the recommended max

bad84cougar

4/1/23 5:55pm

Is that gross income?

bag

4/1/23 6:00pm

Most likely gross.

JohnnyC

4/1/23 6:02pm

No, most likely not. 63% can't be right.

RexIdaCoug

4/1/23 6:03pm

How could they calculate net? Way more variables compared to gross.

JohnnyC

4/1/23 6:05pm

Gotta be net. No way.

mulletino

4/1/23 6:04pm

Those numbers don't make sense. I question the way they are calculated

RexIdaCoug

4/1/23 6:01pm

Yeah I think it's BS. They haven't given any source whatsoever.

supertux

4/1/23 6:02pm

Yeah, and the Tweet doesn’t give any source or context for the data

Odysseus

4/1/23 6:03pm

RE: Yeah, and the Tweet doesn’t give any source or context for the data

supertux

4/1/23 6:05pm

Here is how they calculated these numbers:

kcca

4/1/23 6:59pm

Ok, so they’re just taking median home value (with a 30-year mortgage) divided by median household income. Their

Odysseus

4/1/23 7:25pm

It’s kinda of a dumb way to present it. Most banks will not go above 43% DTI to

Superman21

4/1/23 11:39pm

Utah. I’m at 10%. Phew.

ABN RGR

4/1/23 6:06pm

Ramsey guidance to not buy home unless 15 yr fixed, payment <25% take home

Florwood

4/1/23 6:06pm

Really becoming less realistic for majority.

The Y's Insider

4/1/23 6:13pm

With home prices the way they are, it’s a near statistical impossibility.

Ungoy

4/1/23 7:29pm

8.6% but that’s a 15 year. New Mexico

LaserCoug

4/1/23 6:11pm

63% of gross? So 100% of net. Yeah OK

Memmo

4/1/23 6:13pm

These numbers are a joke. They are not accurate. Not even close. Landlords in CA have plenty of options for

HarlemCoug

4/1/23 6:13pm

In coastal areas my guess is this is legit. The cosigners data isn't added for

chismoso

4/1/23 6:17pm

I'm a landlord in NYC. These "rent burdened" numbers are a lie. They are completely debunked with 7th grade analysis.

HarlemCoug

4/1/23 7:23pm

Im no expert. I do know in my own family there are multiple generations

chismoso

4/1/23 7:32pm

Yikes. Multiple generations? How?

mulletino

4/1/23 9:38pm

I don't know the details of the financing

chismoso

4/2/23 7:18am

I'm moving to Colorado soon and it's insane trying to buy

WorfoSAUR

4/1/23 6:13pm

We just left (mid 2021); couldn't afford to buy down and stay

BlueInfidel

4/2/23 2:30am

I should have looked elsewhere. The location just sounded too cool

WorfoSAUR

4/2/23 7:33am

This is why the RE market will collapse with an actual recession

chismoso

4/1/23 6:15pm

Gross or net income?

Gunga Galunga

4/1/23 6:20pm

I had to buy in Utah 4 months ago

Gunga Galunga

4/1/23 6:41pm

9% for me in Az. Was lower when we had a 30yr. Moved to a 15 yr when the

kotacoug

4/1/23 7:51pm

I’m at 8% in AZ too.

JohnnyComeLately

4/1/23 7:53pm

4 percent (of gross) in AZ / happy not to be house poor

BYUfan92

4/2/23 12:09am

6 percent (of gross) not in UT / happy not to be house poor (looking for better)

BlueInfidel

4/2/23 2:28am

Based off gross or net income?

Gunga Galunga

4/2/23 7:29am

With no Hawaii in top 10, this is highly suspect

JupiterJones

4/2/23 7:43pm

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