sometimes I just look at what I'm doing, shake my head, and say God help us.
the new or most recent mortgage math says that we can allow a buyer, including a first time homebuyer, to use up to 50% or more of their "gross" income towards their PITI and toal monthly debt.
does this seem a bit insane to you?
do you know anyone who gets to use/spend their "gross" income.
so when I'm doing the buyer this favor, I need to stop and wonder
am I really helping them or am I doing them a disfavor.
Let me stop her, and inject another thought before going on.
this is why when a buyer asks me what they can afford I respond,
"I don't know."
dear Mr. and Mrs Buyer you need to decide that. I can only tell you what you can qualify for.
sometimes you might be able to "afford" more, and sometimes less.
that brings me back to that 50% (of gross), "how much of the buyers "net" is that?
55-60% or more?
That's pretty scary to me.
the residual income left to pay for some of those luxuries like
may not be very much
so to some/many first time buyers I should say,
Congratulations, you have just married your home.
All I'm really trying to say to all of the homebuyers, especially the first time homebuyers, and to all of us who may influence them, stop and think about what you're doing before proceeding. It's a big responsibility, not to be taken lightly, and
Beware, watch out for that screwball mortgage math.