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>1.) If you truly are "rich," then you pay for your home in cash. You do not take out a mortgage on your house. Look at a distribution of loan amounts, the vast
by zardo 9y ago
>1.) If you truly are "rich," then you pay for your home in cash. You do not take out a mortgage on your house. Look at a distribution of loan amounts, the vast majority are around $600k. Very few are are >$1M [0]. Home loans are a product for middle-class Americans.
Looking at the distribution of loan amounts would only be meaningful in the context of the distribution of home sale prices.
Obviously fewer loans are made for houses that fewer people are buying.
- spaceflunky 9y agoRight, but who would take out a $750k loan on a $8.5M house? I concede I lack the data to prove my point, but common sense would tell you that these loans are almost all within the middle class home bracket.
- uiri 9y agoSomeone who has $8.5M of assets and wants $750k of liquidity. Interest rates are so low that it makes sense to take out a mortgage to invest the cash elsewhere.
- spaceflunky 9y agoLet me rephrase... Who NEEDS to take out a $750k loan in order to be able to buy a $8.5M house?