4 ms·
This is such unadulterated bullshit. The purpose of a 30-year fixed mortgage is to build up equity over the course of someone's working career such that when i
by psunavy03 3y ago
This is such unadulterated bullshit. The purpose of a 30-year fixed mortgage is to build up equity over the course of someone's working career such that when it comes time for them to retire, they own their primary residence and only have to pay property tax on it until they die. This allows people to retire on a fixed income less than what they earned in the workforce, enabling their nest egg to actually BE a nest egg, and then also allows them to pass that property to their heirs, allowing for the beginning of generational wealth, if not the continuation thereof.
If you rent for the same period of time, you piss away literally hundreds of thousands of dollars of home equity which you and your heirs can benefit from. But let's piss all over the greatest tool society ever created for creating generational wealth, because it's "capitalist," and that means it's icky.
- htss2013 3y agoExcept the average US mortgage holder buys and sells a house every 7 years. For the first 7 years the amortization schedule means you're paying almost all interest and building very little equity. You're also paying realtor fees and transaction costs each time. So while paying off a 30 year mortgage might have been to pay off the house and keep it forever, that's not how Americans treat it. They basically use it as a way to get 10-20x leverage on housing prices speculation, and if they profit, cash out 7 years later and do it again with a new house.
- mihoda 3y ago1) your argument is right 2) but it hasn't been an average of every 7 years in at least 30 years. It's 13.2 years. And perhaps it shouldn't be. There's lots of foregone opportunities when you stick in a home and don't move to better employment.