Wallet Therapy: The Bank Said Yes. Should You?
About this episode
The episode discusses the complexities of mortgage approval versus actual living affordability and the benefits of renting.
I had to pull cash out of my savings this week to pay for a patio, because apparently some people still only take cash in the year of our lord. So I am feeling some feelings about housing costs. Meanwhile Alex is under contract on a house, I just moved into a smaller one, and we both learned the same lesson from opposite directions: getting approved for a mortgage and being able to live comfortably with it are two completely different things. The Solution Approval is not a plan. The bank is measuring risk to the bank. It has no idea whether you want kids, want to retire early, or want to travel. Affording the payment is not the same as living with it. Why this feels so hard right now. The median US home is around $435,000 and the median household income is about $88,000. To comfortably afford that house you'd need closer to $110,000. If buying feels out of reach, you are not imagining it. Renting is not throwing money away. Renting buys flexibility, predictable costs, and way fewer maintenance surprises. Alex rented for two years after selling in Naples specifically so she could figure out where she actually wanted to live. Renting isn't wasted money if what it's buying you is…
People in this episode
Host: unknown
Topics covered
- housing costs
- mortgage approval
- renting vs buying
- financial planning
- emergency fund
Mentioned in this episode
Books & works: For The Hayters: The Stories We Survive
Places: US
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