Comments by "geckster109" (@geckster109) on "Neil McCoy-Ward" channel.

Quick question: If inflation begins to increase dramatically, wont interest rates HAVE to also move up? Mortgage holders aren't in business to lose money, so why would they lend at 3% if inflation is at say 6-7%?
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If you buy 3-5 years from now with all cash, you are the biggest winner!
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@craigthebrute2409 And what are borrowing limits based on? Have you ever had a mortgage? Or do I need to explain debt to income ratio to you? Its the single biggest factor determining how much a person can qualify to borrow.
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Something you left out of your analysis was wages. Wages are going to be the single largest factor in the slowing down of home prices. Housing cannot increase 10-15% per year if wages only increase 3-5% per year. At some point, people cannot afford these prices, thus reducing values.
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Not possible unless wages also quadruple, which we know aint happening!
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@craigthebrute2409 Try to get a $500,000 mortgage with a $22,000 annual income and perfect credit. It wont happen! The loan approval process takes into heavy consideration an individual's debt to income ratio when determining how much money they will lend. Most lenders use the 36% rule: Take all your current monthly debt (car payments, student loans, credit card balances, etc) then add your new expected monthly mortgage payment and divide that number by your gross monthly income. If that number exceeds 36%, you probably will not qualify to borrow that much. So yes, WAGES definitely play a major role in housing prices. You cannot quadruple the value of homes without also quadrupling wages so people will be able to buy those homes. Understand?
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