I'm used to buying houses one at a time, so am trying to wrap my head around the concept of bridge loans. I hear so many people talking about paying two mortgages at the same time and am wondering why, let alone how.
What are the pros and cons of bridge loans? Rate? DTI? Fees? Risk?
Okay, so first of all, I KNOW I tend to like things I can't afford. But mostly, that's confined to things I can easily walk away from like vacations, high end furniture and clothing. What I'm noticing is the sheer number of buyers who want to buy things way over their budget - with a 30 year mortgage that they can't walk away from - is staggering.
Our parents were perfectly fine with starter homes, so why are we like this? Specifically, if a lender/realtor tells us we can't afford the home $40-50k over our budget, we'd rather just pout instead of being more pragmatic.
Did HGTV do this to us?