Re:Mortgages are a manufactured product
by matwood on Friday January 14, 2022 @03:27PM
(#29939942)
> How's the price of house even mattered all their life?
Assuming the standard US fixed 30 year mortgage, it mattered quite a bit. Their final payment was on relative terms, much less than their first payment. This effect over time made your grand parents wealthier by having one of the most expensive parts of living (housing) somewhat sheltered from inflation (taxes and upkeep not withstanding).
I live in a popular location, and the house next door just rented for 2.5x what I pay on my 10 year old mortgage. I like where I live and don't plan on selling, but the price I locked in years ago has absolutely mattered to my life.
Assuming the standard US fixed 30 year mortgage, it mattered quite a bit. Their final payment was on relative terms, much less than their first payment. This effect over time made your grand parents wealthier by having one of the most expensive parts of living (housing) somewhat sheltered from inflation (taxes and upkeep not withstanding).
I live in a popular location, and the house next door just rented for 2.5x what I pay on my 10 year old mortgage. I like where I live and don't plan on selling, but the price I locked in years ago has absolutely mattered to my life.