The summary is:
The video is about how much income it takes to rent or buy a home in different price ranges, based on various rules and guidelines. The video compares the costs and benefits of renting versus buying, and explains how lenders determine how much mortgage you can afford. The video also gives some tips on how to save money and find a good deal when buying a home, and ends with a hypothetical example of how much it would cost to buy a $65 million mansion.
Here are some key facts extracted from the text:
1. The 28% rule states that you should spend no more than 28% of your gross monthly income on your mortgage payment, which includes property taxes and insurance.
2. The 3033 rule states that you should spend no more than 30% of your gross income on your mortgage payment, have at least 30% of the home's value saved up in cash or semi-liquid assets, and do not buy a house that costs more than three times your annual income.
3. The debt to income ratio is a measure that lenders use to determine how much money you can borrow for a mortgage. It calculates how much money is left over after your expenses. Most banks want a debt to income ratio below 45%, which means less than 45% of your take-home pay goes towards paying off your debts, including your mortgage.
4. Renting is cheaper than buying in all but four major metros, according to Redfin. The typical home costs an estimated 25% more per month to own than rent.
5. To afford a $65 million house, you would need to have an income of $1.4 million a month or $16.8 million a year using the 3033 rule, or $11.5 million a year using the 45% debt to income ratio.