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> Reads like: "I made poor decisions, over leveraged myself, and then I lost everything... Now I expect others to take the fall." Interest-only mortgages shoul
by marcosdumay 1y ago
> Reads like: "I made poor decisions, over leveraged myself, and then I lost everything... Now I expect others to take the fall."
Interest-only mortgages shouldn't exist. They are predatory and the people that take them just don't have the discernment to make that decision.
(I'm honestly surprised that they exist at the UK.)
- maerF0x0 1y agoWhy not? You can lease a car. IMO an interest-only mortgage is basically renting with upside to the equity, which is something the US seems to be very keen on getting everyone to have some skin in the realestate game. I'm not really into governments being paternalistic so I'd rather see people be allowed to choose poorly, but they also need to be able to suffer at least some consequences.
- bdangubic 1y agocan you leave the keys to the house after my interest-only loan expires in 3 years? :)
- maerF0x0 1y agobasically renting, not exactly the same. The point is interest only loan is Renting + Equity Exposure. It's a good move if you are experiencing the price appreciation growing faster than your downpayment. You can enter the market price exposure before you get priced out. And if you're right about the direction it's heading you can make money (relative to renting) so long as your outflow is similar to renting (across the time span, rents go up...)