Sentences with phrase «affordability ratio»
The phrase "affordability ratio" refers to the relationship between the cost of something, such as housing or education, and a person's ability to pay for it. It is a way to determine whether something is affordable for an individual or a group of people based on their income or financial resources. Full definition
Our calculator is based on standard affordability ratios used to determine qualification for mortgage approvals.
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Lenders are qualifying mortgage applicants with much lower home affordability ratios and higher credit scores.
Combining these numbers resulted in a mortgage affordability ratio of 21.5 %, making Austin one of the costliest places for homeowners in Texas.
«The Comptroller's report is certainly correct that the state's fiscal position is much improved, but it ignores key facts — most notably that state debt has declined for four consecutive years for the first time in more than 50 years and our debt affordability ratio is at its lowest level since the 1960s,» said DOB spokesman Morris Peters.
All mortgage applications moving forward will undergo qualifying «Stress Tests» whereby affordability ratios will be calculated based on the Bank of Canada Benchmark rate of 4.65 % to determine if borrowers will be able to afford their mortgage payments in the event of a rate increase.
We will instruct you on affordability ratios, discuss a variety of loan products to choose from, and pre-qualify you for a home loan, BEFORE you shop.
«Our bonding practices have three layers of public oversight and full transparency, State debt has declined for four consecutive years for the first time in modern times and our debt affordability ratio is at its best level since the 1960s,» said spokesman Morris Peters.
In addition, Co-op City imposes upper income limits on its applicants, another factor that would skew the affordability ratio.
Dividing this monthly payment by the median monthly income resulted in an affordability ratio specific to each area.
Known for its wineries and peach orchards, the city had a median household income almost identical to Austin's but slightly lower home values, resulting in an affordability ratio of 20.8 %.
While our affordability ratio illustrates the relationship between incomes and home values, it does not take into account the varying effects of property taxes and homeowners insurance, which can increase the monthly commitment required in a mortgage payment.
As a rule of thumb, an affordability ratio less than 28 % is ideal; it means that someone living in the neighborhood on the median income can reasonably afford the median house without a huge strain on their budgets.
«Mortgage lending led to affordability getting out of whack back in 2006 due to mortgage programs increasing buying power and thus driving up home price when in reality, without those products, the affordability ratio (between home prices, incomes and interest rates) were nowhere near sustainable.»