Allowing one to control a large asset while being able to benefit off the appreciation of the entire asset seems like it helps the buyer, IMO. These “affordable” mortgages come with a higher foreclosure risk to your point. There’s benefit there but at a price.
What’s so nightmarish? Having something you call your own? Having a fixed expense? Controlling a large asset with very little upfront costs? Help me understand.
I very much agree with what you’re saying. I also believe the enticing 0% and minimal payment schemes are targeting homeownership to people who are under prepared for the cost which comes with homeownership. For people who meet the requirements and have done their homework, these product will be a windfall.
To your point, these "affordable" mortgages will likely have a higher foreclosure rate than the traditional mortgages. I'm not ready to call it a windfall, however. I feel like its more of a unintended consequence due to not requiring any "skin in the game." Lower down payment mortgages always have a higher default rates. 0 down will make it easy to walk away when times get tough.
This benefits the lenders only
Allowing one to control a large asset while being able to benefit off the appreciation of the entire asset seems like it helps the buyer, IMO. These “affordable” mortgages come with a higher foreclosure risk to your point. There’s benefit there but at a price.
Turning dreams into nightmares.
What’s so nightmarish? Having something you call your own? Having a fixed expense? Controlling a large asset with very little upfront costs? Help me understand.
I very much agree with what you’re saying.
I also believe the enticing 0% and minimal payment schemes are targeting homeownership to people who are under prepared for the cost which comes with homeownership. For people who meet the requirements and have done their homework, these product will be a windfall.
To your point, these "affordable" mortgages will likely have a higher foreclosure rate than the traditional mortgages. I'm not ready to call it a windfall, however. I feel like its more of a unintended consequence due to not requiring any "skin in the game." Lower down payment mortgages always have a higher default rates. 0 down will make it easy to walk away when times get tough.