4 ms·
>If I want to buy a house without a mortgage (or with a limited, affordable mortgage), I still need to be able to outbid other buyers who might have no qualms a
by mikem170 7y ago
>If I want to buy a house without a mortgage (or with a limited, affordable mortgage), I still need to be able to outbid other buyers who might have no qualms about taking on an unaffordable debt.
I'd blame local zoning boards for that, they won't let new houses be built, so the prices keep going up, screwing folks who don't own homes already.
- jbay808 7y agoThat's definitely an issue, but not the one I'm talking about. Let's say the rules right now permit 30 year mortgages. Someone suggests allowing 100 year mortgages. I don't presently own property, but I have $300k saved up in the bank, which is enough to get a low-end apartment that would be a step down from where I'm renting now, or enough for a mortgage downpayment on a house. I don't want to live in debt so I have no plans to get a mortgage. Should I believe that these rules changes won't affect me, because I don't have any plans to get a mortgage? Or should I be worried that the cheaper availability of credit will quickly put those entry-level apartments out of my price range? Basically, my point is that changes in details regarding contracts that I'm not a party to can still significantly affect me!
- mikem170 7y agoAgreed - increased loan availability affects the supply/demand curve.
- CalRobert 7y agoThank you! It's often overlooked that housing basically soaks up as much debt as we throw at it. In Sweden, you'd be competing against people getting 110 year mortgages.
- xur17 7y agoIsn't the extreme of this interest only mortgages?