Sometimes he’s like Rush. And proves these 50 years are a problem. A 30 year is too much. 15 to 20 years? Well good.
A big part of me wants to just say “Buyer beware”, roll my eyes at people who make poor choices, and just figure out how I could make money off of it....
I hate to sound like Dave Ramsey lecturing a caller who cries about being underwater, but good gravy. I just ran some pretend amortization tables and my lord. Even at 4% - a rate you won’t get - we’re talking about a nearly 8:1 interest to principle ratio! Breakeven points push out to 15-20 years!
People thought the 2008 subprime crisis was bad? Wait until we have people underwater on 50 year notes.
I’m generally opposed to government protecting people from making bad decisions, but this “Klarna-izing” finance has to stop.
We’ve already seen car loans being pushed out to a ridiculous 7 years and financial problems created by such bad loans.
There’s a point where it stops being about protecting individuals from making decisions and more about preventing slow-detonating landmines from being placed all over the broader economy.