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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (12935)	10/6/2004 11:15:36 AM
From: yard_man	Read Replies (3) \| Respond to of 116555

don't know where to find that info, but my house was pretty close to the 1 1/2 times my pre-tax annual salary and I still thought I was spending too much -- call me a miser

To: mishedlo who wrote (12935)	10/7/2004 12:52:39 AM
From: Roebear	Respond to of 116555

Mish, 1.5X annual gross income was a rule of thumb for house purchase limit in the 70's. We bought our own house in 1983 for about 2.2X gross annual income. However, the year before I had larger than normal income due to sale of a business and I put 33% down on the house. That and the large down payment were the only reasons I was allowed by mortgagor to buy that much house in relation to my annual income. Even with 33% down I almost had to beg and also sign away my first born to get the mortgage, quite different from these days when only convicted arsonists might have trouble obtaining a mortgage, ggg. Mortgagor also virtually forced an ARM on us. Which I didn't mind as at the time rates were very high (ARM was 11.5%, fixed would have been 14% or more) and poised to come down. Again a very different situation today. Best, Roebear