[jefftk]

I see: it is true, from the bank's perspective, in the specific case of mortgages, because they're no-recourse

[JumpCrisscross]

> in the specific case of mortgages, because they're no-recourse

This varies jurisdiction to jurisdiction. And it isn't really germane to the question of quantifying one's leverage, which is a going-concern analysis.

[jefftk]

> going-concern analysis

But then don't we need to get into evaluating future earnings?

[JumpCrisscross]

> don't we need to get into evaluating future earnings?

Yes, many flow leverage ratios look at this, e.g. interest to Ebit.

[jefftk]

That's just a bit of a funny thing to do with a homeowner, no?

[JumpCrisscross]

> bit of a funny thing to do with a homeowner, no?

This is why mortgage lenders test your debt burden and interest cost against income.