Quote:
Originally Posted by Red
Then I am way to old for that 
My point is that with the amortizations extenended it allowed people to borrow more. That resulted in higher demand and prices. Now housing is very expensive. Slash it in half and now people have more money for everything else. Now everything else is paid from HELOCs. (in a lot of cases).
Why principal is important? If you have 1K a month left over it is way quicker to pay off a 100K mortgage than 300K.
I'd take a higher interest rate over higher principal for the same payment. Because ever dollar that you have left over (saved) has so much more meaning. |
I totally agree - but just don't see that reasoning in the first time or second time home buyer when they're buying. Maybe when they're older and looking at what's coming down the road in 30-15 years. So the forward thinking 30 year olds and those nearing retirement. As well the HELOC's are often used very poorly, I've seen 50ish year olds with almost fully maxed out mortgages, few savings and wanting to take out equity to buy a fancy car. It blows my mind.
But like I said earlier - I'd rather see the government or banks focus on the even more stupid lending.