How much do you have to make to pay $3500 MTG payment?

[napi21]

I'm listening to KGO radio from San Fransisco. A guy just called and asked about refinancing his home MTG and he was paying $3500 a momth now. How the hell much do you have to make to be able to pay that much a month on a mortage?
I'm absolutely astounded that anyone can afford that!

[auntAgonist]

1. a LOT more than I do.

[napi21]

2. No kidding! Me too!

I was shocked that someone would even consider paying that much!

[punpirate]

3. If he's one of those many San Franciscans...

... who is paying 50-55% of his take-home on the mortgage, his family income before taxes is probably $120K. That's two $60K/yr wage earners. Fairly average these days, and probably fairly near the median for San Francisco.

But, yeah, a lot more than I could afford, too.

Cheers.

[lapfog_1]

4. Well, probably about $150,000 a year

Let's say he bought an average place in SF... for around $950,000.
If he did this some time ago, he likely got a jumbo ARM for 3.5%,
if he doesn't have much other debt (credit cards, etc), and has
a car payment of $450/month, AND had $200,000 to put down (from
the equity built over the last decade in another BayArea home),
then he could afford a $900K+ home if he makes about $12000 a month.

Sadly, $950K doesn't really buy you what the rest of the nation might
think. It's a much more "average" home than the name implies...
on the plus side, $150K / year is not out of the question for many
high tech workers in the Bay Area (it's certainly high, but it's
not out of reach).

[CanuckAmok]

5. $168,000.

At least by my credit union's rules: They will only approve a mortgage up to an amount of monthly payment equal to no more than 25% of total gross household income.

[MazeRat7]

7. Yeah.. I was estimating 30% of total monthly gross.

[MazeRat7]

6. I would guess around $200k. (n/t)

[lavenderdiva]

8. typically, they suggest that your mortgage payment be no more

than a third of your monthly income. It used to be a quarter, but now its a third. So, someone with a $3500/month mortgage, would be bringing in no less than $10,500/month, or $126,000/year.