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Housing Affordability

Do really people make that much money? Or are they (or they were) just stretching themselves? Or maybe they are not aware of the rule of affordability: you should not spend more than 28% of your income on mortgage.

To add to that, here in NJ, you would be lucky if you found a house for less than $350K. Everybody must be rich -- just not me. :-)

Take, for example, the Baltimore area, where Johns Hopkins Hospital is based. The median home price there is $275,000, according to the report. Assuming that not more than 28% of household income would be spent to pay the mortgage, property taxes and insurance -- and factoring in a 10% down payment -- the annual income needed to purchase a home of that price in Baltimore is $94,206, the study found.

Reference
Many health-care workers priced out of homes, MarketWatch


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