Quote:
Originally Posted by PsYcNeT
House poor is probably the most easily avoidable form of poor, and yet people are so bad about buying to the top of their affordability that we need rules like this to get them to pump the brakes.
Sad.
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We went into our appointment for our mortgage with a clear number in mind based on our budget and savings goals, 300,000. The bank said we were approved for 550,000.
Seeing as how we are rational, we said no thanks. Unfortunately most people i talk to have no idea what their monthly expenses actually are, so if the bank tells them "Yeah you are approved for x" then they think x is what their mortgage should be. It really is sad. I have thought for a long time that (not that high school kids will listen anyways) financial planning should be something taught in school so people dont ruin their lives with debt they can't afford