[AMG_G]

I know a lot of people who commit financial suicide. Case in point My sister just imprisoned herself in a 700k home with 20% down amortized over 30 years. Get this, she is 38 making 50ish, her husband 49, is a car salesmen 100% commission maybe making 80k on average, they have 3 young children (10, 8 and 1) with no RESP and no retirement savings plans and to top it off they have two BMW payments. To people who don't know it seems like a well to do family but underneath they have nothing but debt. If house prices drop 10% they will half their equity they put in. I have never seen such financial irresponsibility in my life. They will pay dearly for their house lust.

I asked him about retirement one time and he said that he will do a reverse mortgage on his house when he retires. I said what if your house is not worth what you predict it to be worth in 15 years? He had no answer. That 700k home will cost him nearly a million bucks once all said and done. Think of the returns if he invested that money.

How can banks lend someone over a half million dollars for 30 years when he is nearing 50 and making what he's making? Banks are just as guilty as the BIL.