Quote:
Originally Posted by Red
It's not just about the $100/month. People should not base their lives on monthly payments. The principal owing is what really counts.
If we didn't have changes to extend to 30-35 and 40 amortizations we wouldn't be paying 500K for 275K houses. We could then afford bigger downpayments and with people less stressed financially we would have more spending at the malls etc. The economy overall would be healthier.
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I get what you're trying to say but it doesn't really make any sense.
Okay, let's say over the next 5 years the $500 k house drops to $275 k and you can only amortize 25 years if you put 5% down. If I was in the situation I'm in now I'd buy the most house I feel comfortable affoarding now and in the future. If the $500 k house is now $275 k I'm buing the $450 k house that used to be $700 k. I'm not instead spending the money in the mall on stuff?
Are you providing statistics that show the multiplier on a dollar spent in malls has a greater effect on GDP than a dollar spent in a house?