I received a link about figuring the right amount of debt to take on for a mortgage. I thought it valuable to pass on, but no generalized advice can supplant really understanding your own situation. Banks use certain general calculations about how much to preauthorize for a loan. One builder we worked with said, “The bank won’t loan you more money than you can afford.” But that wasn’t true. We knew our expenses and how close to the edge we felt comfortable committing our reasonable resources and expectations for the future, and the bank’s pre-qualifications were above that we knew was wise for us. In the last housing bubble all kinds of ill-qualified middle-men jumped into the mortgage market and sold a lot of people on buying a home they couldn’t really afford. Not too many years later they were desperate for bail-outs, just as foolish corporations and those with ulterior plans and motives were.
Nevertheless, for what it’s worth, here’s a link to the article:
Emergency Prep--some ideas and options 