Maybe I have been doing this wrong all this time. I was always under the impression that a house payment on a 30-year mortgage was going to be right around one percent of the price of your house. Obviously your interest rate and your down parking have some affect that, but one percent was the standard.
So I'm watching a DIY channel and everyone is buying these $350,000-$600,000 houses. I'm a little confused how a 25 year old can afford a $450,000 house in Washington DC. Even if she has a good job at that age you figure she is making $80K per year. Even at $100K per year a $4,000 mortgage payment would be excessive. What am I missing here?
So I'm watching a DIY channel and everyone is buying these $350,000-$600,000 houses. I'm a little confused how a 25 year old can afford a $450,000 house in Washington DC. Even if she has a good job at that age you figure she is making $80K per year. Even at $100K per year a $4,000 mortgage payment would be excessive. What am I missing here?