3 ms·

> The only exception might be a mortgage of 25-33% of a house value, I'd put 75-66% in cash. Can you explain your rationality for this? You're still allowing t

> The only exception might be a mortgage of 25-33% of a house value, I'd put 75-66% in cash. Can you explain your rationality for this? You're still allowing the bank to have senior ownership of your house except... for less money. If you default, they keep your house, no matter what the debt-to-value is. Like, I understand saying "I couldn't make my mortgage payments so the bank took the house, but I guess they did pay for 90% of it". But this seems like all the insecurity of a mortgage for a lot less money?

nbar1 3y ago
The bank doesn't "keep" your house, they foreclose on it and sell it. Once they sell your home, any liens and associated costs are satisfied and the remainder of the money is given to the borrower.
- oblio 3y ago
  If the value of the house has increased...
  - nbar1 3y ago
    No, any value outside of what is owed to the bank. If you take out a 300k mortgage and pay it down to 150k principle then default, the bank sells it for 250k and gives you 100k (minus associated costs).
deleted 3y ago
[deleted]