Mortgage Norms

Though housing prices have fallen, in most places they prevail alarmingly high when compared with rents and incomes. A bank norm for a safe mortgage is a maximum of 3 times the annual income of a buyer with a down payment of 20%. According to landlords, a safe mortgage runs to a maximum of 15 times the income from annual rent. However these norms are being grossly violated on the coasts. With a 3% down payment, buyers are borrowing as much as 6 times their annual income. Even with declining prices, sellers are quoting as much as 30 times the annual rent.

Dale Warfel’s Bay Area Expertise

Dale Warfel is a realtor who buys and sells housing properties in the Bay Area. He is an experienced real estate agent who guides a buyer or seller as to a fair price for a property given the uncertain times and the neighborhood. He can also advise a buyer on a safe and affordable mortgage. San Jose real estate can be confusing to the unfamiliar, since there are so many neighborhoods. Dale Warfel’s website www.dalewarfel.com contains comprehensive data on homes in San Jose communities. It offers a homeowner an expert assessment of the value of his property and a buyer can search San Jose MLS – and all this for free. Dale Warfel can be contacted at 408.624.6202.