http://www.federalreserve.gov/Releases/housedebt/default.htm


The financial obligations ratio (FOR) adds automobile lease payments, rental payments on tenant-occupied property, homeowners' insurance, and property tax payments to the debt service ratio.

2006 first quarter indicates a 11.41 ratio for mortgage, and 6.18 ratio for consumer debt and automobile leases.

That's not terrible. If you're a renter, then count on 24.33% of your disposable income to be your financial obligations ratio.

NOTE: The 2006 Q1 release incorporates data from the 2004 Survey of Consumer Finances and the March 2005 Current Population Survey.

So the rising % of interest-only loans has not yet been factored in. Where I live, last year, 38% of recent home mortgages were interest-only loans. The national average percentage of mortgages that were interest-only loans is 19.1%. I suppose these people are just temporarily playing house in Seattle -- good for a short time, but lethal if they're still in the home after awhile.

People tell me that nobody buys a home at 2.5 - 3 times a household income anymore. Is that true? I thought everybody did that. I know not everyone puts 20% down -- I don't know anyone who bought the same time I did who managed to do that, at least not without the help of Mumsie and Daddy-dear.

Mortgage: $157,505.85
Scooter: $ 4,692.21
Credit C: $ 88.15
------------------------
$162,286.21