Thursday, November 14, 2013

Mortgages and Margin

I recently sought a home loan pre-approval.  I already had in mind the amount of mortgage my family could take on, mainly determined by the amount of money we could commit to a monthly mortgage payment.

For the sake of this simplifying this illustration, the amount that I felt my family could handle was $100 each month.  The banker that I got my pre-approval from suggested I could afford to pay as much as $144 each month.  Remember, $44 is just for the illustration, that's a 44% increase.  (Add 44% to your current mortgage payment and tell me what you think.)

Yes, my family could have pinched and scraped and made the banker's number work, but I would hate to think what would happen if we did and any emergencies or unforeseen circumstances come up.

And yes, God can provide whatever we need, whenever we need it.

But I can't help but thinking that a little financial margin would do all of us some good.  And if you're making a financial decision, the established institutions aren't going to find your personal margin, that's on you to know and live by.

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