Re:Wealthy mortgage borrowers face cold shoulder from lenders
by gdubs on Friday April 24, 2020 @11:47AM
(#22969277)
With mortgages people are generally paying a ton of interest up front, and it takes a long time to build up equity. People are limited by the equity in how much they can borrow against the loan, and for a very long time the bank has a million dollar asset, not the borrower.
they end up in possession of an asset worth $1MM. ill-liquid sure but still a durable asset. you can borrow against that asset, it appreciates proportionally, you can eventually sell it, etc. what's the difference between it and $1MM and equities holding? i don't understand how you think being in possession of something like doesn't cross the threshold for wealth simply because other people in the neighborhood are also wealthy?