Hi Russ,
As you know I work for a major Bank in their mortgage dept., but at the bottom of the food chain. I do not have the stats on types of mortgages etc. and stats may be proprietary.
But I can provide information from the trenches. Borrower quality is slipping. Lower down payments are pervasive. People predominately want 0-3 % down mortgages. 100% loan to value mortgages are very popular. Both sub prime and FNMA or FDMAC. Lot of purchases are 80% 1st with a credit line 2nd maxed as a variable to 100% LTV.
Total debt to income ratio limit parameters have gone from around 41% max FHA and FNMA in the mid 90's to the low-mid 50% range. Total debt can be 53% of income. So let's see if someone nets out about 68% of gross income after state and federal taxes etc. that would leave this: $65,000 average family income X .68 = $44,200 net. Total debt to gross income ratio of 53% for a mortgage payment including PITI + MI + consumer debt = $34,450. $44,200 - $34,450 = $9750 divided by 12 = $812.50 net cash left for Groceries, insurance, home up keep, utilities, clothes, gas and oil, auto repairs, miscellaneous. Family of 4 = $600.00 for groceries and meals out. (Bet it's more than that.) That leaves $212.50 for the rest. Gas and oil, insurance, utilities, etc. This does not balance out unless you are the federal government.
IS THERE ANY DOUBT THAT THERE ARE NO SAVINGS AND THAT WE ARE A NATION OF CREDIT CARD USERS? |
