Reply to The seven paths to DC-area home ownership

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]$156K is a good salary for the region. $375k on that salary is too conservative. Even with a 5% mortgage and 0 down, 30 year fixed on that is $2k a month. Add in 350 for taxes and insurance and you are looking at only 18% debt to income ratio, *FAR* shy of the 28%-33% ratio that most people subscribe to. Using 28% as a ratio, your "affordability" figure jumps to about $580k, which can buy you a nice townhome in Fairfax, or even a single family in some of the older but still nice neighborhoods like Burk.

I am not a Realtor, just someone who has done enough of these types of calculations to know when people are over/under extending themselves. [/quote]

you're out of your damn mind[/quote]

Your calculations are confusing me - are you confusing gross and net? Because we make about what OP and spouse do, and after taxes/insurance etc. on our take-home, a mortgage of "only" $2350/month comes pretty damn close to being 33%.

Being conservative is really tough in this area, but it is definitely a positive thing and not one to necessarily advise against. [/quote]

No I am not, mortgage plus tax plus insurance as part of gross income, not net, is the standard way to calculate debt to income ratios. You don't have to agree with me or this method, but it is what it is and is what's commonly used to gauge whether someone's income is able to afford a certain home.

DC area is not an area for the conservative, it's for those who are on an upward trajectory in life. This is where you strive to earn more and grow your career. If you just want to casually cruise through life at a leisurely pace, there are much better locations than DC for that. [/quote]

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