Quote:
Originally Posted by hulkrogan
Dinking around with maximum allowable amortization periods really helped to F everything up. If they would have just left it at 25 years people would have run out of borrowing power a lot faster, and prices would have been curbed sooner.
All that allowing longer mortgages does is hand a whole bunch of artificial equity to land owners in an arbitrary manner. Scaling it back does the reverse, and people that bought when 40 year mortgages were around got screwed.
I think some lessons were learned for a lot of people that found themselves upside down on houses when it came time to move, and even more will happen when interest finally goes up and a lot of people will have their pants down with debt and LOC payments.
We're going to be a pretty poor bunch when we retire compared to our parents/grandparents (depending on your age).
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The low emergency interest rates are only prolonging this madness.
PC will try to keep it going till elections, but things are not looking too rosy for the long term.