Do we really want to bring those days back?
I make a six figure income and I would never take out a $600,000 mortgage. It would cripple me. It's irresponsible to make loans that can't be paid back.
Banks are more than happy to loan money to people who don’t really need the loan because of the value of their other assets.
I know a few nut cases with that kind of mortgage and they are not Doctors or Lawyers they are working class like me. I can’t for the life of me figure out why the bank would give such a loan let alone how they can afford it.
Its irresponsible is to tie the hands of banks and individuals. Let them make their choices
Not to mention using tax dollars to bail out bankers who make poor choices.
A $600k mortgage would cost the borrower less than $3000 per month
Not sure how that cripples someone earning $10,000 per month gross.
***But those were the go-go days of the real estate frenzy***
It has happened before, once back in the Jimmah Carter fiasco and through the 1980s when interest rates went through the roof, and every mortagage company was encouraging homeowners to refinance and SPEND SPEND SPEND the equity they got out of their homes! Then came the real estate crash.
Then again in the pre-Obama years when mortgage lenders were encouraging people to BUY BUY BUY overpriced homes on beer budgets, even lending more than the house was priced at.
I told my wife.. “Hide and watch! It will all collapse soon!” And it did!
We held pat and were in OK financial shape. That is, until I saw this morning’s stock markets crash! Now I am taking diction lessons to say... “Welcome to Walmart!”
Excellent answer!
I would go further, take the 25%, pay cash and steal a foreclosure...