I wanted to follow up on our Monday piece with a bit more math (I’ll do it for you – I know you don’t want to bust out the TI-83 in a vacation week). Today’s piece hinges on ‘mortgage qualification’, because of a few comments on Monday’s piece. In a nutshell, mortgage qualification comes down […]
debt to income ratio
The San Francisco Bay Area, generally agreed to include the nine California counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma, is one of the wealthiest regions in the United States. From its powerhouse engineering and business schools to the Venture Capital firms in Menlo Park and Palo Alto; from the financial buildings in San Francisco to the tech firms in Silicon Valley, the region has an immense capacity for generating wealth (and a history of massive booms and devastating busts).
There is a part of the Bay Area, which I’ll call the Inner Bay (although I know it is sometimes called the “Real Bay Area”) which has an especially concentrated amount of wealth. That wealth is reflected in home prices which are among the top in the nation. In the Inner Bay, consisting of Alameda, San Francisco, San Mateo and Santa Clara County, it’s not unheard of for houses around 1,000 square feet to sell for close to a million dollars (or more, in places like Atherton, Saratoga, Los Altos and Palo Alto).
In our last article, we promised you a calculator so you can copy our methodology and calculate ‘affordable’ houses by determining what an acceptable monthly payment would be. In our current article, we deliver! Thanks to Ironman at Political Calculations for the calculator creation script, it was very useful once again!