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If you think the house will appreciate and you have the money, I think it’s fine to extent the loan as long as you’re willing to take the risk on the appreciati
by wodenokoto 4y ago
If you think the house will appreciate and you have the money, I think it’s fine to extent the loan as long as you’re willing to take the risk on the appreciation you don’t really even need to risk assess the 27 year old.
- Retric 4y agoTransaction costs offset significant appreciation in the short term. This makes such loans surprisingly risky even if homes are appreciating.
- SOLAR_FIELDS 4y agoRight - this is fundamentally different than the education argument - the house is a tangible asset that can be repossessed. The education is not.
- deleted 4y ago[deleted]
- Spivak 4y agoSo if, for you, the thing that makes a loan safe is the lender feeling reasonably confident in the value of the collateral then what makes 10% of a persons discretionary income for 20 years feel more risky?
- wodenokoto 4y agoThe ability to collect 10% and the size of their income. But I’m from Scandinavia so I do think 10% of income is a great way to pay for college. Have the government collect it and cut out the bank!