Saw this on tv the other day...

10 years ago 28 percent of the monthly income went to the house payment....today, the average is 45 percent! 45 percent!!! Seems that mortgage companies have relaxed the payment to income ratio as far as what people can afford on a monthly house payment. When you add in car payments, food, utilities and so on, it's hard to imagine how average people could break even.

Keep up with the "Jones's"? No thanks.

-- Annie (mistletoe6@earthlink.net), July 23, 2002

Answers

You can say that again, no thanks!!! It's insane in my opinion, but they make it so easy to get in over your head!

-- Patty (SycamoreHollow@aol.com), July 23, 2002.

Where did you hear this? It almost sounds like a commercial.

We bought out current house about a year and a half ago. The lending agent said we could not use more than 30% of our income for the mortgage. This after we were told that our credit rating is as high as you can normally get. I just wondered what gives. Is it a difference between banks or what?? I would certainly not invest in the banks that allow you to spend 45% of your invome on the mortgage. This is a disaster just waiting to happen.

-- Bob in WI (bjwick@hotmail.com), July 24, 2002.

In a town near us they are starting a new housing development called Homestead estates. What a bad name. The smallest house is over 1/2 million dollars. So far there are three houses, being built by brothers. These things are monsters that I don't even think are pretty. A local banker friend told us that you can now get a 50 year mortgate on a house - not a misprit, 50 years. It takes 32 years of full interest payments before you even start paying on the principal. I can't even imagine getting into a deal like that. Joanie

-- Joanie (ber-gust@prodigy.net), July 25, 2002.

When I got my house, I paid down out front to get a 10 year payment with monthlies less than the apartment rent I was paying, then double payments each month for 4 years.

-- Jay Blair in N. AL (jayblair678@yahoo.com), July 28, 2002.