Comments on: The Lengths to Which Mortgage Lenders Will Go http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 22:51:28 -0500 http://wordpress.org/?v=abc hourly 1 By: Stephen Snyder http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/comment-page-1/#comment-71046 Stephen Snyder Tue, 10 Apr 2007 18:10:42 +0000 http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/#comment-71046 So many people think that just because you they get approved for something (mortgage, car, etc) they must be able to afford it. So many people think that just because you they get approved for something (mortgage, car, etc) they must be able to afford it.

]]> By: Anonymous http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/comment-page-1/#comment-2852 Anonymous Tue, 04 Apr 2006 18:55:05 +0000 http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/#comment-2852 I can think of one possible legitimate reason for doing that. If the income that you can document to the bank's satisfaction, such as a salary, is the basis for the 50% back-end ratio, but it is not your entire income, it might make sense. If you have substantial income from investments, but it is not reliable enough to satisfy the lender, your actual bank-end ratio may be well below 50%. That is the only reason I would even consider taking on a mortgage like that. I can think of one possible legitimate reason for doing that. If the income that you can document to the bank’s satisfaction, such as a salary, is the basis for the 50% back-end ratio, but it is not your entire income, it might make sense. If you have substantial income from investments, but it is not reliable enough to satisfy the lender, your actual bank-end ratio may be well below 50%. That is the only reason I would even consider taking on a mortgage like that.

]]> By: Emma http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/comment-page-1/#comment-2849 Emma Tue, 04 Apr 2006 16:13:50 +0000 http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/#comment-2849 Nick, you're right. 50% front-end ratio would make you house poor. That would be just as bad as a 50% back-end ratio. Ours is nowhere near those.. Nick, you’re right. 50% front-end ratio would make you house poor. That would be just as bad as a 50% back-end ratio. Ours is nowhere near those..

]]> By: Nick http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/comment-page-1/#comment-2846 Nick Tue, 04 Apr 2006 13:59:35 +0000 http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/#comment-2846 But what if your mortgage is your <i>only</i> debt so that your front-end ratio is very close to your back-end ratio? In that case, is it acceptable to have a 50% ratio if all 50% is so-called "good debt" (vs. bad debt like credit cards, car loans, etc.)? I wouldn't mind finding a lender who would give <i>me</i> a 50% back-end ratio. Then I might actually be able to afford a house around here! But what if your mortgage is your only debt so that your front-end ratio is very close to your back-end ratio? In that case, is it acceptable to have a 50% ratio if all 50% is so-called “good debt” (vs. bad debt like credit cards, car loans, etc.)?

I wouldn’t mind finding a lender who would give me a 50% back-end ratio. Then I might actually be able to afford a house around here!

]]> By: MoneyDummy http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/comment-page-1/#comment-2844 MoneyDummy Tue, 04 Apr 2006 13:30:33 +0000 http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/#comment-2844 Or just very little income. LOL. Or just very little income. LOL.

]]> By: Blaine Moore http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/comment-page-1/#comment-2843 Blaine Moore Tue, 04 Apr 2006 13:06:26 +0000 http://www.fivecentnickel.com/2006/04/04/the-lengths-to-which-mortgage-lenders-will-go/#comment-2843 Yeah, that is an insane amount of debt. Yeah, that is an insane amount of debt.

]]>