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How is someone making 250k in income cash flow poor unless they have overcomitted with respect to expenses?
by bigbacaloa 4y ago
How is someone making 250k in income cash flow poor unless they have overcomitted with respect to expenses?
- credit_guy 4y agoIt was not over-commitment when they committed (when they took the mortgage).
- s1artibartfast 4y ago90% of US mortgages are fixed rate, so inflation shouldn't increase the mortgage. IF anything, Inflation decreases the cost of the mortgage for those who own homes because they are a fixed dollar amount.
- credit_guy 4y ago> IF anything, Inflation decreases the cost of the mortgage for those who own homes because they are a fixed dollar amount That’s only if you saw a salary increase. Lots of people have seen salary increases, but that happened mostly in the lower income brackets. At the 250k+ level, you got an increase only if you switched jobs.
- s1artibartfast 4y agoYeah, but that is irrelevant to the idea of mortgage increasing as a percent of income. No high earners are getting pay cuts.