Anonymous
05/20/2021 11:34
Subject: Re:Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:Anonymous wrote:We bought six months ago - very happy with what we spent, knowing it was a stretch for us. I put our stats in the NerdWallet calculator, and it puts us right in the middle of the yellow. Sounds right to me!
Perhaps you're one of those super conservative DCUM real estate types who thinks people who make $200k a year can only afford a $400k house, but I agree with NerdWallet.
You aren't the sharpest tool in the shed.
PP here. $185k household income, $2,400 a month in childcare, no other debts or big expenses, we put 17% down on an $860,000 forever home. Yes, it's a stretch. NerdWallet says it's a stretch. Feels like the "yellow zone" is where we belong. We're very happy and comfortable. We also have very reliable incomes and a very solid emergency fund.
This makes my moderate risk tolerance brain ill to think about.
Anonymous
05/20/2021 11:30
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
The calculator doesn't ask for retirement contributions or monthly savings or childcare or tuition or student loans. It recommends a really expensive house independent of these things. That is our complaint with the tool.
Look again at the website. It's not the tools fault that you're not including those things:
Nerdy insight
Monthly obligations could include things like child care or support, car loans, credit card debt, student loans and alimony. Lenders have some leeway on how they factor in your debt load — depending on your credit score and payment history — but it’s best to consider realistic numbers here, not low-ball numbers so that you don’t get into a financial bind down the line.
All of those are legally monthly obligations. That's all that lenders care about.
This. They don't care if you save enough for retirement or college. They just want to know how many other lenders they will have to fight for a cut if you default.
Anonymous
05/20/2021 11:27
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
The calculator doesn't ask for retirement contributions or monthly savings or childcare or tuition or student loans. It recommends a really expensive house independent of these things. That is our complaint with the tool.
Look again at the website. It's not the tools fault that you're not including those things:
Nerdy insight
Monthly obligations could include things like child care or support, car loans, credit card debt, student loans and alimony. Lenders have some leeway on how they factor in your debt load — depending on your credit score and payment history — but it’s best to consider realistic numbers here, not low-ball numbers so that you don’t get into a financial bind down the line.
All of those are legally monthly obligations. That's all that lenders care about.
Anonymous
05/20/2021 11:16
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Nerdwallet was telling me I could buy a $1 million house on a household income of $165k. That doesn't make sense.
My DH and I qualified for up to a $900k house on a HHI of about $150k. It was insane. We had good credit and a good chunk to put down, but we ended up with a house that cost $550k. 8 years in, I'm very glad we bought under and now have money to do improvements and updates and do other things.
Anonymous
05/20/2021 11:15
Subject: Re:Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:We bought six months ago - very happy with what we spent, knowing it was a stretch for us. I put our stats in the NerdWallet calculator, and it puts us right in the middle of the yellow. Sounds right to me!
Perhaps you're one of those super conservative DCUM real estate types who thinks people who make $200k a year can only afford a $400k house, but I agree with NerdWallet.
You aren't the sharpest tool in the shed.
PP here. $185k household income, $2,400 a month in childcare, no other debts or big expenses, we put 17% down on an $860,000 forever home. Yes, it's a stretch. NerdWallet says it's a stretch. Feels like the "yellow zone" is where we belong. We're very happy and comfortable. We also have very reliable incomes and a very solid emergency fund.
Anonymous
05/20/2021 11:15
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
student loans are included, but monthly savings, childcare, and 529s are not debt and that is what that field asks for "Include your minimum payments for credit cards, student loans, car payments (exclude housing and living expenses)."
It asks for your monthly obligations, then lists a few examples to help out. Yes, it doesn't list literally every possible line item a family may use their income for each month, but it shouldn't have to. Use your critical thinking skills, if savings and childcare are significant financial obligations you don't need someone holding your hand to tell you you should list them.
Anonymous
05/20/2021 11:12
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
The calculator doesn't ask for retirement contributions or monthly savings or childcare or tuition or student loans. It recommends a really expensive house independent of these things. That is our complaint with the tool.
Look again at the website. It's not the tools fault that you're not including those things:
Nerdy insight
Monthly obligations could include things like child care or support, car loans, credit card debt, student loans and alimony. Lenders have some leeway on how they factor in your debt load — depending on your credit score and payment history — but it’s best to consider realistic numbers here, not low-ball numbers so that you don’t get into a financial bind down the line.
It must load a different calculator for you because I don't see "monthly obligations" field of the calculator anywhere.
Anonymous
05/20/2021 11:09
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
student loans are included, but monthly savings, childcare, and 529s are not debt and that is what that field asks for "Include your minimum payments for credit cards, student loans, car payments (exclude housing and living expenses)."
Anonymous
05/20/2021 11:08
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
The calculator doesn't ask for retirement contributions or monthly savings or childcare or tuition or student loans. It recommends a really expensive house independent of these things. That is our complaint with the tool.
Look again at the website. It's not the tools fault that you're not including those things:
Nerdy insight
Monthly obligations could include things like child care or support, car loans, credit card debt, student loans and alimony. Lenders have some leeway on how they factor in your debt load — depending on your credit score and payment history — but it’s best to consider realistic numbers here, not low-ball numbers so that you don’t get into a financial bind down the line.
Anonymous
05/20/2021 11:06
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
The calculator doesn't ask for retirement contributions or monthly savings or childcare or tuition or student loans. It recommends a really expensive house independent of these things. That is our complaint with the tool.
Anonymous
05/20/2021 11:03
Subject: Nerdwallet's How Much House Can You Afford is comical!
So much user error in this thread!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
I guarantee everyone who is saying "OMG it recommended such an expensive house!" vastly underreported their monthly obligations.
Did you include your retirement contribution? Monthly savings? Childcare? Tuition? Student loans? 529 deposits? If not, then PEBKAC. No kidding it recommended an expensive home, it thinks you have oodles of free cash you don't actually have!
Anonymous
05/20/2021 10:49
Subject: Re:Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:It said I would spend 45% of my take-home income on my mortgage payment. It was like getting in a time machine to 2007.
Hopefully the loan officers are not on this same time machine.
I suspect they must not be. My next door neighbor has had 3 contactable on his house in the last two months. All three have fallen apart before closing because the buyer couldn’t get financing.
I'm the pp. I am so thankful I bought 2 years ago. I was approved then for about 40% less than the nerdwallet amount.
Anonymous
05/20/2021 10:17
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:Anonymous wrote:The very cheapest house they recommended for us (1.4) is the very most I would consider. I think they need to take another look at this calculator.
Not likely. Telling people what they want to hear is more profitable than telling people what they NEED to hear.
And the idiots who get mortgages according to this advice will be our next wave of foreclosures.
Not necessarily. Alot of them will make it and will be house poor for 30 years.
Anonymous
05/20/2021 10:16
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:Anonymous wrote:The very cheapest house they recommended for us (1.4) is the very most I would consider. I think they need to take another look at this calculator.
Not likely. Telling people what they want to hear is more profitable than telling people what they NEED to hear.
And the idiots who get mortgages according to this advice will be our next wave of foreclosures.
Anonymous
05/20/2021 10:03
Subject: Nerdwallet's How Much House Can You Afford is comical!
Anonymous wrote:The very cheapest house they recommended for us (1.4) is the very most I would consider. I think they need to take another look at this calculator.
Not likely. Telling people what they want to hear is more profitable than telling people what they NEED to hear.