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A comment on Mortgage Rates Jump Above 6%, Putting Pressure on Housing Market. Parent comment

Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing... by aidenn0 on Thursday September 15, 2022 @12:44PM (#32854703)
Doesn't matter what a random piece of land does; the $200k you owe on your house is $200k more money you have to do other things. If the value of that money goes down by more than 1% per year, then the person with the 0% mortgate and 1% property tax is better off using any money in pocket for literally anything other than paying down the mortgage.
[ Parent | on HN ]
Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing... by lotsofpulp on Thursday September 15, 2022 @12:57PM (#32854964)
Yes, this would not be true:

> On a million dollar house - you'd get paid $100k per year to live there.

[ Parent | on HN ]
Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing... by s1artibartfast on Thursday September 15, 2022 @03:20PM (#32857204)
That is exactly how it works for millions of people who bought or refinanced with record low rates. If you borrow $1million at 2% interest, and inflation is 10%, you are profiting $80k/yr if you put the money in an asset that goes up in value with inflation.
[ Parent | on HN ]