In 1929, many borrowed money to invest in the stock market. When the market crashed the lenders insisted on getting their money back. Because some borrowed money to invest, they lost their homes, farms and businesses.
The same could be said about borrowing money to buy a home and investing a lot of cash instead of paying off the home early or buying with cash. It’s like borrowing money (taking out a personal loan) to invest thinking that you could pocket the difference between the mortgage interest and the investment profit.
A problem develops when we borrow money for our transportation and homes and vacations and lifestyle and then invest, if something goes sideways, we are screwed homewise.
It’s not that I care what people do with their money I could care less. But the whole concept of middle class wage earners borrowing money to become financially independent is silly.
I say this as an individual that invests $60K/year, way more than the stupid person scrambling to put together a down payment on a home and planning on investing a few bux and holding on to a mortgage. The reason I can invest that amount as a wage earner is because I paid off my home and all the other debt I had. If I see a home for sale that is a good purchase that I might want to get as an income property I would do that with a mortgage because if it goes south I will still have my primary home.
Oh that, Mr. Trump, it’s just a standard clause we put in all our commercial lending products.
You’ll not have any problem as a result of that being included.