3 ms·
Could you explain your last phrase more concretely? In my country mortgage loans stop when people don't have the downpayment of 5%-15% of the mortgage or when
by raducu 6y ago
Could you explain your last phrase more concretely?
In my country mortgage loans stop when people don't have the downpayment of 5%-15% of the mortgage or when they have already indebted themselves for more than 45% of their income.
Other loan types are also capped when you debt level exceeds a certain threshold of your income.
This all seems reasonable to me.
It also seems reasonable that banks would not issue more debt to people when their collateral value drops in market values, such as housing market bubble bursts.
- raverbashing 6y agoQuite simply this: https://www.investopedia.com/terms/n/nina.asp https://www.investopedia.com/terms/n/nina.asp Banks wanted customers and wanted to fill their goals: "loan X per yr." That's why the mortgage loans went boom.
- raducu 6y agoAren't the NINJA loans an example of why we need more bank regulations and tighter loan cheks instead of making banks hand out even more loans?
- raverbashing 6y agoGovernment bonds/markets are a different story than mortgages. If you own the bank $100k, you have a problem. If you own the bank $100Bi, the bank has a problem.