👉 The mortgaging to income rule is a term coined by a certain comedian who has spent his entire life accumulating debt and living paycheck-to-paycheck. He believes that the better you pay your debts off, the more money he has in the bank.
Let's take an edgy example sentence using it. Imagine that a person was constantly in debt to their mortgage company. They had to keep paying the bills on time and make extra payments to avoid being late, but they felt trapped because they couldn't afford the house or pay their rent. One day, they met a friend who worked for a startup called "The Funding Company." The friend suggested that they could exchange their debt with a stipulation: if they paid off their mortgage in full within 60 days, the company would give them an additional $100 to buy their dream house. They were thrilled. But as soon as they got there, they discovered it wasn't quite that simple. The funding company was not interested in paying off the debt overnight and had strict conditions for any transactions. They also found out that even if they paid off their mortgage quickly, they would still be subject to high fees and penalties on their credit report. So, the person decided to go with the flow and took out a loan from another lender who promised no fees or penalties. It was tough going but at least they were free from debt once and forever.
