3 ms·

No, mortgages are thousands of years old. https://books.google.com/books?id=Z_NnBwAAQBAJ&pg=PA281&lpg=PA281&dq=mortgage+history+1190+england&source=bl&ots=Yysi

No, mortgages are thousands of years old. https://books.google.com/books?id=Z_NnBwAAQBAJ&pg=PA281&lpg=PA281&dq=mortgage+history+1190+england&source=bl&ots=YysiIUYji9&sig=ktHx0XQYAGRyrrxDRdY0emAxtqs&hl=en&sa=X&ved=2ahUKEwj08Pqo5NXfAhUI-J8KHRPXAdcQ6AEwFnoECAEQAQ#v=onepage&q=mortgage%20history%201190%20england&f=false https://books.google.com/books?id=Z_NnBwAAQBAJ&pg=PA281&lpg=...

graeme 8y ago
The book isn't loading that page, but if it's referring to old English mortgages I believe those were loans from the property owner themself. And the buyer wouldn't get the house until they finished the payments. If they failed, they lost everything.
- caymanjim 8y ago
  How is that any different than today? When you have a mortgage, you don't own the property; the lender does (only they've also externalized all the risk to the government via Freddie). If you fail, you might not lose everything, but you lose all the non-principal, which is effectively everything for the first half of the mortgage term. And if you fail while the market is down, you can lose even more than you've paid in.
  - graeme 8y ago
    What do you mean lose the non principal? If you buy a $200,000 house with a $40,000 downpayment, you get it back if you default and the house value is unchanged, right? From what I read back then, you would get nothing unless you had paid everything. So pay in $199,999, miss final dollar, lose house, no money returned.
    - lazyasciiart 8y ago
      Non-principal = all the interest you've paid.
      - caymanjim 8y ago
        Yeah, by non-principal, I was primarily referring to interest. On a 30 year mortgage, you're paying almost nothing but interest for the first 15 years. And the realtor/title fees and taxes are losses as well. The above commenter is right to point out that the downpayment goes toward principal, though. In the scenario I posited where the housing market declines, you can still end up in the red though.
- lazyasciiart 8y ago
  No, it isn't. It starts with China, thousands of years ago.

graeme 8y ago

The book isn't loading that page, but if it's referring to old English mortgages I believe those were loans from the property owner themself. And the buyer wouldn't get the house until they finished the payments. If they failed, they lost everything.

caymanjim 8y ago
How is that any different than today? When you have a mortgage, you don't own the property; the lender does (only they've also externalized all the risk to the government via Freddie). If you fail, you might not lose everything, but you lose all the non-principal, which is effectively everything for the first half of the mortgage term. And if you fail while the market is down, you can lose even more than you've paid in.
- graeme 8y ago
  What do you mean lose the non principal? If you buy a $200,000 house with a $40,000 downpayment, you get it back if you default and the house value is unchanged, right? From what I read back then, you would get nothing unless you had paid everything. So pay in $199,999, miss final dollar, lose house, no money returned.
  - lazyasciiart 8y ago
    Non-principal = all the interest you've paid.
    - caymanjim 8y ago
      Yeah, by non-principal, I was primarily referring to interest. On a 30 year mortgage, you're paying almost nothing but interest for the first 15 years. And the realtor/title fees and taxes are losses as well. The above commenter is right to point out that the downpayment goes toward principal, though. In the scenario I posited where the housing market declines, you can still end up in the red though.
lazyasciiart 8y ago
No, it isn't. It starts with China, thousands of years ago.