Mortgage Suitability
Categories: Mortgage
See: Mortgage.
Can they afford the payments? That's what the bank is gonna be asking, along with 187 other questions. Is the gardener (who's married to the substitute school teacher, who combined make $100,000 a year) able to afford this $512,000 mortgage? Technically, maybe there's a way the numbers can work out, kinda sorta. But should the bank loan that money? They have no savings. No wealthy co-signers. No easily portable skills, like a PhD from MIT in Computer Science. So is this BFM (big fat mortgage)...suitable?
And then come all the moral/ethical questions about whose job it is to make that determination. Like...is it on the bank if they loan the money and then the borrowers can't pay it back? Shouldn't the bank have known better? Or is it somehow loanist (the financial version of racist) to not loan to somebody if they technically qualify?
Read about the 2008 mortgage crisis for the ugly details if you care. And you should.