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"shocked"; a bit of sarcasm perhaps? A 30 year loan is not much different really. Too long. It was rare in the US before various government subsidies and encou
by njarboe 9y ago
"shocked"; a bit of sarcasm perhaps?
A 30 year loan is not much different really. Too long. It was rare in the US before various government subsidies and encouragements. First, Fannie Mae (1938), securitizing FHA backed home mortgages. Next, Freddie Mac (1970), securitizing home loans not backed by the US government.
- opportune 9y agoShocked because it seems obvious to me that this would have undesirable effects down the road. It also funnels even more money into banks because the net effect is that homeowners are essentially renting from banks for most of their lives until they get a significant windfall. In the US, we saw what happens when you make getting a mortgage "easy". People bought more house than they could afford and got screwed.