The Ultimate Game Changer: Why 2009 Will Be Worse Than 2008 (Part 1) [View article]
"Surprisingly few Americans have the ability to put 20% down on a $300,000 home"
Interesting breakpoint. With median earnings at $50K or so, how many people could be expected to have more than a year's income ($60K) available for a home downpayment? Maybe they have that in IRA/401k, but deploying it for a home wouldn't be particularly prudent.
If we use the 3x rule of thumb (home=3x annual earnings), how many could put $30K down on a $150K home? My guess is not many.
The Ultimate Game Changer: Why 2009 Will Be Worse Than 2008 (Part 1) [View article]
Interesting breakpoint. With median earnings at $50K or so, how many people could be expected to have more than a year's income ($60K) available for a home downpayment? Maybe they have that in IRA/401k, but deploying it for a home wouldn't be particularly prudent.
If we use the 3x rule of thumb (home=3x annual earnings), how many could put $30K down on a $150K home? My guess is not many.