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>But how are those debts paid back? They do not have to be. For instance, it is common to never completely pay off the mortgage in Switzerland to avoid one-o
by sam_lowry_ 4y ago
>But how are those debts paid back?
They do not have to be. For instance, it is common to never completely pay off the mortgage in Switzerland to avoid one-off taxation. Instead, the eventual taxes are included in the cost of the debt.
- maccard 4y agoThere's a difference between never paying it back fully, and never paying it back _at all_.
- brianwawok 4y agoInterest only mortgage exists in the US. You never pay principle.
- maccard 4y agoAn interest only loan doesn't suddenly mean there's no repayments. The hint is in the name, you still have to repeat the interest on the loan. Payment terms may vary but if you think that banks across the US are sitting on interest only, asset backed mortgages for the ultra wealthy's most expensive purchases, and taking no payment from them then I don't think we're going to be able to come to an agreement on this topic.