| Both willing to extend themselves to the hilt in | | | | Trouts: $270k X 3 = $810K (each of the Trouts |
| order to buy something they'll be proud to show | | | | received nice bonuses in addition to their $250K |
| off to their friends and loved ones... yes we've all | | | | base salary before the recession hit and of |
| got a bit of Jones' in us regardless of how much | | | | course the bank factors this into the gross salary |
| we like to deny it. Anyway, the Trouts have | | | | calculation) plus their $100K down payment = |
| saved just over $100K, their combined gross | | | | $910K... and what's another $90K between friends, |
| income is approximately $250K and guess what | | | | right? |
| the bank has "approved" for them? They have | | | | The bank understands that after the government |
| just received the "GO AHEAD" from the bank to | | | | has had its way with the lovely Trouts, they take |
| purchase a home worth....ONE MILLION DOLLARS. | | | | home roughly $150k net which works out to |
| Ahhh, the "approval". Here is a perfect example | | | | almost $14,000 each and every month. If the |
| of the kind of marketing "for-profit" organizations | | | | Trouts were super Jonesers, and they took the |
| (like the bank) use to make you feel good about | | | | cool mil at the 4% variable rate the bank is |
| paying them outrages sums of money in interest | | | | offering, they would ONLY be obligated to pay |
| each and every month. | | | | the bank $3,600 every month. Chump change |
| The math behind "the approval" is super simple. | | | | compared to the $14K they receive each month |
| The wily bank takes collective gross salary and | | | | so it looks like a super deal... right? Wrong. |
| multiplies it by three years. In the case of the | | | | |