Home values in many areas are declining. At the same time, many homeowners have seen their payments increase as their adjustable rate mortgages reset to higher rates. If they are unable to make the higher payments or to refinance at more favourable rates, they are subject to foreclosure. Describe the measures that banks use in assessing the ability of borrowers to repay a mortgage loan. What additional considerations might a borrower want to look at before deciding if they can afford to pay back a mortgage?