Re:More Subprime Borrowers Are Missing Loan Payments
by jrumbut on Thursday May 19, 2022 @05:08PM
(#31440194)
The amounts that mortgage originators will hand out are still pretty incredible.
I bought a house a few months ago. The mortgage payment is right around what the more conservative rules of thumb suggest is affordable.
After the lender had all my information I asked, out of curiosity, what was the maximum they'd lend me. They came back with a number that was more than triple what I ended up borrowing and suggested there was room to go higher if that was something I was interested in.
Perhaps subprime borrowers face lower limits but it's still possible to take a risk stretching your budget to buy a house. That may be OK or even good but I'm concerned the perception is that lenders won't approve a mortgage that will be very difficult to keep up with when they absolutely will.
I bought a house a few months ago. The mortgage payment is right around what the more conservative rules of thumb suggest is affordable.
After the lender had all my information I asked, out of curiosity, what was the maximum they'd lend me. They came back with a number that was more than triple what I ended up borrowing and suggested there was room to go higher if that was something I was interested in.
Perhaps subprime borrowers face lower limits but it's still possible to take a risk stretching your budget to buy a house. That may be OK or even good but I'm concerned the perception is that lenders won't approve a mortgage that will be very difficult to keep up with when they absolutely will.