What is an "Affordable Home"...I've seen many comments on housing prices coming down to an "affordable level", and have seen "affordable" defined in terms of cost:income ratios. The ratios I have seen are typically 2:1, 3:1 and sometimes 4:1. Being a numbes person, I did some crunching of my own and came up with the following "basic afforability ratios". This is not a definitive identification of ratios, but I thought they might be of interest, as well as the assumptions used. At worst, they provide a common starting point for arguing what "affordable" means. 5.0% 5.5% 6.0% 6.5% 7.0% 28% 5.2 4.9 4.6 4.4 4.2 33% 6.1 5.9 5.5 5.2 5.0The percentages across the top are mortgage rates, and the percentages on the left are front-end ratios (mortage payment divided by gross monthly income). These ratios are based on the following assumptions... 1. The mortgage product is a conforming 30-year fixed rate mortage. 2. The buyer is putting 20% down, financing 80%. 3. Closing costs of 3% are directly paid by the buyer (i.e., not added to the mortgage).December 06 2008 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.