----- Original Message ----- From: "Julia Thompson" <[EMAIL PROTECTED]> To: "Brin-L" <[EMAIL PROTECTED]> Sent: Tuesday, January 22, 2002 8:51 AM Subject: Re: Gummint programs and stats (was RE: Presidents RE: Corruption ...)
> Dan Minette wrote: > > > That's absolutely crazy. Lets assume that a teacher could get a 1500 sq. > > foot house for 750k. That would mean payments of about 50,000 per year with > > a 30 year mortgage. They would have to make over 200,000 per year to > > qualify. > > Qualification for real estate loans in the Bay area are different than > they are here in Texas. That's interesting. They are the same in New England and the Upper Midwest, to first order. > Dan has a co-worker on a salary comparable to Dan's. The co-worker > recently bought a $900K house (a smallish house on a really crappy lot, > but in a location that would keep his commute below 2 hours). On the > house we're building here in Texas, our maximum qualification for the > loan wasn't even quite half that much. > > A $750K house could be got by someone making less than $100K there. Even if they move from another area and don't have $300k of equity? Lets assume they can have 0% down, and the interest rate is 6.75%. That's pretty darned good rate, and near a minimum for the last 3 years. Their payments would be $4850/month or $58,200 per years. Add PMI...which is needed for down payments <20%, and we get $65,000 per year. That doesn't even include insurance and taxes. If I can add, that means that the housing costs would be $70k/year, or over 70% of income. That's really allowed? Dan M.
