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interest-only home mortgages are almost always a bad choice for most consumers Just for future reference, if anyone lets you make an infinitely leveraged 500,0
by mynameishere 9y ago
interest-only home mortgages are almost always a bad choice for most consumers
Just for future reference, if anyone lets you make an infinitely leveraged 500,000 dollar bet that you can walk away from at any time, you take that bet.
- CamTin 9y agoOn the other hand, if someone offers to let you make an infinitely leveraged 500,000 dollar bet that you can walk away from at any time provided you are OK with the consequence of being unable to access another mortgage loan or to rent (because of outstanding housing debt), then probably don't take that bet.
- TrickyRick 9y agoBut wasn't a big part of the '08 crisis the fact that you actually could walk away from all of it as a home owner and the banks were stuck with the loss? Sure it sucks to be homeless but it suck a hell of a lot less than being homeless with huge debts.