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Walken_Shoebaru t1_iydfe5w wrote

Reply to comment by sephiroth3650 in New WFH job, lease ending in FEB - Rent or buy? by [deleted]

The multiplier is a function of the interest rate. If it dropped to 5x that had to be with sub 3% rates. You're realistically looking at 3-4x right now.

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sephiroth3650 t1_iydildg wrote

Totally agree. The underlying interest rate is a main factor. A $400k mortgage at 3% comes out VERY differently than one at 8%. Those rules of thumb are just generalizations, and as I said, I don't agree with people pushing that shit to 5x. I would say AT MOST you go 3x.

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Walken_Shoebaru t1_iydjwzh wrote

Definitely. This month the median home could not be purchased by the median household income. Idk how often that happens, but it's the situation we're in.

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