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The Case Against 30-Year Mortgages

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13 points paulpauper | 1 comments | 11 Oct 25 16:42 UTC | HN request time: 0.502s | source
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yawgmoth ◴[11 Oct 25 17:11 UTC] No.45550817[source]▶
Isn't the alternative less home ownership and less growth in quality of life? Didn't all of those programs increase demand which made people homeowners?

There are a number of reasons why homes are expensive today and it's not just "social programs bad".

replies(2): >>45551168 #>>45551175 #
1. jltsiren ◴[11 Oct 25 17:53 UTC] No.45551168[source]▶
Home ownership becomes more accessible when homes are cheaper.

Financial instruments that aim to make home ownership more accessible tend to become subsidies to people who don't need them. If people can afford to pay more, homes become more expensive. But those who don't need a mortgage pay less for the same home. Those who can afford a shorter mortgage pay less. Those who can afford an adjustable rate pay less than those who pay a premium for a fixed rate.