Expert: Don't Buy As Much House As Lending Institutions Allow
Purdue UniversityIf you borrow as much as a lender will give you to purchase a home, you may be spending more than you can afford, says a Purdue University expert on family budgeting. "The mortgage payment is only 60 percent of total housing costs," says Flora Williams, associate professor of family and consumer economics. "People underestimate the cost of owning a home, and rules on affordability need to be changed in light of a growing number of personal bankruptcies."