Are you "Upper Middle Class"?

[8manpick]

Good thing we are all around here

[wetwillie]

Debt is dumb cash is king and the paid off mortgage is the new status symbol of choice.

[Kat Kid]

Debt is dumb cash is king and the paid off mortgage is the new status symbol of choice.

 

[michigancat]

This Marxist class crap is silly. What class does a guy that lives in the country, has a net worth of $50 million and lives within an annual budget of $10-$30K belong?

How about a family of 4 with a household income of $200K living paycheck-to-paycheck in a neighborhood with an average household income in the $300K range? Are they middle class?

Both are upper class

[Tobias]

both hinry working poor, from what I've been told on this blog

[star seed 7]

both hinry working poor, from what I've been told on this blog

the poor devils 

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

I agree with whoever said class is relative to where you live. As a proglib globalist I believe that even our poorest as upper class, rife with American privilege, because our minimum level of welfare benefits is about 4 times the global median income.

[slackcat]

Debt is dumb cash is king and the paid off mortgage is the new status symbol of choice.

So sez Dave Ramsey.

[Kat Kid]

I agree with whoever said class is relative to where you live. As a proglib globalist I believe that even our poorest as upper class, rife with American privilege, because our minimum level of welfare benefits is about 4 times the global median income.

this is obviously true.

[Institutional Control]

My wife is a mortgage underwriter and according to her, you can generally get a house loan of 3 times your income.


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[michigancat]

My wife is a mortgage underwriter and according to her, you can generally get a house loan of 3 times your income.


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That doesn't mean it's a good idea

[sys]

3x annual income seems about right.

[Kat Kid]

3x annual income seems about right.

assuming equity ----> 20% down and enough to cover closing costs etc.  The biggest issue as you go toward the bottom end is the lack of capital to cover the upfront costs of first-time home ownership.

[sys]

3x annual income seems about right.

assuming equity ----> 20% down and enough to cover closing costs etc.  The biggest issue as you go toward the bottom end is the lack of capital to cover the upfront costs of first-time home ownership.

i'm not sure what you mean by "issue".  if you mean it as a risk that a potential homeowner is induced to take that is not in their best interest, then i disagree.  the less money down the buyer puts up, the less risk they assume (and counterparties assume more risk).

[star seed 7]

I think he means it's difficult to attain

[sys]

I think he means it's difficult to attain

well then.  fortunately our system does not require that buyers put 20% down.

[Kat Kid]

3x annual income seems about right.

assuming equity ----> 20% down and enough to cover closing costs etc.  The biggest issue as you go toward the bottom end is the lack of capital to cover the upfront costs of first-time home ownership.

i'm not sure what you mean by "issue".  if you mean it as a risk that a potential homeowner is induced to take that is not in their best interest, then i disagree.  the less money down the buyer puts up, the less risk they assume (and counterparties assume more risk).

This is true.  This does result in significantly higher monthly payments though so it is somewhat circular.  I also am pretty conservative about living expenses.

[michigancat]

Again, I think it's a class thing. To me it seems more reasonable budget-wise for a household earning $100k to purchase a $300k house than a $50k household to purchase a $50k house. I could be wrong though.

[sys]

Batt BcKee said a loan of 3x income.  so if a buyer put .2 down, that'd be a total price (excluding closing costs) of 3.75 income.  i think that's still pretty reasonable.

[sys]

Again, I think it's a class thing. To me it seems more reasonable budget-wise for a household earning $100k to purchase a $300k house than a $50k household to purchase a $50k house. I could be wrong though.

yeah, you're definitely wrong.  almost certainly the rent is proportionally higher for the 50k house than the 300k house.

[sys]

i guess to be fair, a 50k house implies it's a real crap hole, and probably needs a lot of expensive repairs.

[michigancat]

i guess to be fair, a 50k house implies it's a real crap hole, and probably needs a lot of expensive repairs.

I meant to type $150k house

[sys]

then i think my rent point is relevant again.

[Kat Kid]

I keep forgetting that I put roughly a mortgage payment every month in to day care for 2 kids, I guess I could afford all sorts of things if I was not doing that.

 

[Emo EMAW]

If you didn't have two kids, you could totally afford to have one kid!