Mortgages With the Greatest Debt to Income Ratios You’ve Heard of Getting Approved? (refinancing, financial)

[Japanfan1986]

As in ones that look like even on paper the borrower will have no way of actually paying back. Or if they do they will have no leftover money to spend.

Based on this thread where fortunately the guy ended up changing his mind: https://www.city-data.com/forum/mort...-question.html

Mainly I’m looking for cautionary tales as I actually know some people who are interested in taking out some really high mortgages. Ultimately it’s up to them, but I try to be a good friend and give them a little more info to make more rational decisions

[adjusterjack]

Good luck trying to convince your friends that they are going to make a big financial mistake.


I told my brother for years that cash out refinancing was a bad idea. When he died his house was worth half what he owed on it and may sister-in-law was left with the short sale mess.


A friend of mine did that and owes more than what he paid for the house 25 years ago.


People always have good reasons for doing something self-destructive. When they look at the consequences they are suffering years later "Oh, I shouldn't have done that."

[Japanfan1986]

Originally Posted by adjusterjack

Good luck trying to convince your friends that they are going to make a big financial mistake.


I told my brother for years that cash out refinancing was a bad idea. When he died his house was worth half what he owed on it and may sister-in-law was left with the short sale mess.


A friend of mine did that and owes more than what he paid for the house 25 years ago.


People always have good reasons for doing something self-destructive. When they look at the consequences they are suffering years later "Oh, I shouldn't have done that."

Well that’s the thing about money. Whatever someone wants to do with their own money is up to them. But we can at least offer people enough information so that they may come to a better decision otherwise. The thread I posted in the OP actually had a positive outcome as the guy changed his mind with just a little info. This guy is probably in the extreme minority in how quickly he listened to reason, but of course everyone would like to think they surround themselves with people just as reasonable.