There's a reason why "Mortgage" means "Deadgage"

First with the work-pooping, now with home ownership, we're definitely on the ball here at LCiN. This Q&A on home-buying was on the front page of MSNBC today.

Mary is moving from the Big Apple to a place where the median home price will buy you more than a broom closet. As a first-time buyer, she's trying to figure out just how much house she can afford.

This question really has two very different answers: 1) how much will a lender give you? and, more importantly, 2) how much do you feel comfortable borrowing?

Especially for first-timers, you really need to start with question #2, and no one can answer it better than you can. If you’ve never made a budget, sit down and come up with one. How much cash do you think you can comfortably afford to devote each month to housing (mortgage) payments? Some people are willing to forego movies and dinner out, bring lunch to work every day and give up their car – anything to own a home. Some stretch too far and find themselves pouring all their income into the house, leaving themselves in permanent financial stress.

...You may be surprised to learn that the lender’s idea of what you can afford is a lot more than you came up with in your original exercise. The formula they use includes some risk on their part that you’ll end up a little over your head. They’re willing to take a little risk because the bigger the loan they sell you, the more they make. But you don’t need to take that risk. Only you can determine your own comfort level.

I guess that settles that. Apartment life, here we come... er, stay!