I know this isn't technically a credit question, but it does have to do with mortgage loans. I am curious what people are getting approved for with the current interest rates.
I know the "rule of thumb" is 2-3 times your income, but when I run the numbers on that with the current interest rates it's $300 less than my rent payment.
Is 4 times your salary too much in this climate with the low interest rates? Even with no debt? I'm looking to buy a duplex, I'm not asking because I'm looking to be house poor.
Also anyone who loses their job is going to have trouble paying their mortgage even at 50 percent DTI or 30 percent.. unless you have a nice savings account.
The home we are buying is 300k. I only bring in 100k gross.
Our mortgage payment is gonna be 2k a month including everything.
Wow, thanks for all the quick responses! We make 48k in verifiable income, we do make some on the side in the form of an internet business we've had for a few years, but they won't count that. Normally I wouldn't buy a house 4 times our salary, but we found a duplex for 190k and one side is already rented. Single family homes in our area in a safe neighborhood start at 150k, so this really isn't that much more considering half of it is already rented. We will not be paying mortgage insurance and we have no debt.
Thanks again, I hope I'm not out of our range here!