3 ms·
It was not over-commitment when they committed (when they took the mortgage).
by credit_guy 4y ago
It 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.