Here are some of the noteworthy finds:
- Under 'What are the risks?' " Your monthly mortgage payment may be larger than your rent." may? It should read 'most likely will' ! Hello.
- "Property values can depreciate" thanks for the information.
- "To get a quick idea of what you can afford to spend, multiply your annual gross income (before taxes) by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is just a rough estimate - the actual number will vary based on factors such as your debt and credit history." Hmm. Then how come you are bundling up loans where people are purchasing homes worth 5 times their income.
- "Don't forget that you also have to save for the down payment, closing costs, inspections costs, moving, and other related expenses. " Ever heard of negative amortization loans?
Theis website directly contradicts the lending practices of Freddie Mac. Freddie no wonder you are in trouble.
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Those are some very old guidlines. They're from the time when housing was priced in some sort of sane way. Around here, however, renters don't get a break either. You're going to be broke whichever way you go.
ReplyDelete2.5 times income? Must be joking. They mean 25 times, right?
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