3 ms·
> If you have a job, why wouldn't you buy as much house as you can afford? Because interest rates are likely to go and then I wouldn't be able to afford that m
by goatforce5 14y ago
> If you have a job, why wouldn't you buy as much house as you can afford?
Because interest rates are likely to go and then I wouldn't be able to afford that mortgage any more?
I'm kinda thinking about buying a house, so I filled in an online mortgage calculator to work out what sort of money i'd have to work with. It said i'd qualify for a mortgage that was twice as high as what I think I need to get somewhere really nice, or three times as high as what i'd need for somewhere quite good.
I don't need that much extra debt to worry about.
- hnal943 14y agoObviously you should get a fixed-rate mortgage. When interest rates "go" you will have insanely cheap mortgage while inflation drives up the price of your house. That said, I suggested buying as much house as you can afford, not for how much they are willing to lend you. That will be different for everyone.
- brewdad 14y agoPeople buying as much house as the bank would approve them for rather than what they could afford is what caused the first bubble. We bought a house for 2x our annual income 3 miles from work. We could have bought in a trendier neighborhood but it would have come with an unreasonable mortgage and an extra 1.5-2 hours of commuting per day.