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It's not neutral if you've borrowed to buy the home... If you're in negative or reduced equity your mortgage costs can increase dramatically when you refinanc
by nly 1y ago
It's not neutral if you've borrowed to buy the home...
If you're in negative or reduced equity your mortgage costs can increase dramatically when you refinance. This alone can easily cripple a large % of the population and tank the consumer economy
- fc417fc802 1y agoWhy would you refinance if you're underwater? Wouldn't you walk away from the property in most cases? Of course that doesn't eliminate the economic impact. It just shifts it elsewhere. An decent case can probably be made for the government to take on such loans and offer some scheme to forgive the difference if certain criteria are met.
- nly 1y agoYou can't walk away from your mortgage in the UK without going bankrupt. If you're underwater you still owe.
- StopDisinfo910 1y agoDepends of where you live. Fixed rates for full duration are standard in a lot of Europe. You never refinance unless it’s winning for you. Forced variable rates are a scam.