all of the above is absolutely on point. I have clients that lenders have told could borrow money that would take 53% (yes, that is 53% ) of their monthly income to repay,   I represented buyers a couple or three years ago when they bought a modestly priced starter home for around $139K. Three years later they asked me to do an analysis which I did -- I thought the house was worth around $169K -- I thought that was pretty good - pay broker fees and walk away with around $18K = can't be bad. She then told me the owed more than $169K on it -- they had refi'd with an online lender who had given them a drive by value on the home of............$229K and had lent them $179K and told them they had equity in the home......adjustable rate mortgage -- of course > It is immoral, should be illegal and has to be fattening.