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A comment on Wealthy mortgage borrowers face cold shoulder from lenders. Parent comment

Re:Wealthy mortgage borrowers face cold shoulder from lenders by codingdave on Friday April 24, 2020 @12:27PM (#22969843)
If people are choosing to live in the Bay Area and spend all their money on COL expenses, that does not mean they are not wealthy. It just means they are choosing to spend all their wealth to stay there. Believe me, those of us who live a state or two east of there see plenty of people who have left after a few years of paying on those jumbo loans, and the equity from those homes sets them up quite nicely in another place.

People who own homes in the Bay Area do not have massive disposable income. But they do have wealth.

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by asdkhadsj on Friday April 24, 2020 @12:38PM (#22970001)
I feel like everyone is talking past each other. Or perhaps the definition of wealth is failing this discussion. Telling a family struggling to make ends meet that they are wealthy seems of little value. Depending on the scenario, they could be one job loss away from having nothing just like one of your families a state or two east.

Now that same family, income and house with a paid off mortgage is in an entirely different situation.

The difference is the wealth they accrued in paying down their mortgage. They claimed value in doing so. But merely having a massive mortgage in the Bay Area does not _inherently_ equate to wealth.

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by nostrademons on Friday April 24, 2020 @12:53PM (#22970227)
As long as they have a supply of buyers for those houses. Article is suggesting that new buyers won't be able to get jumbo mortgages. If people can't borrow $2M for a house anymore the sale price of houses is going to take a big hit.
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