It is much more ominous. We can talk about rate hikes and economic collapse all we want. But none of that talk can even scratch the surface of reality. When you or your neighbours are losing your houses, or fighting for food in a manufactured food shortage.
Here in Canada virtually everyone in my circle of friends has about 500k in mortgage debt. People with variable rates paying 1% last year would be paying about $400 in interest costs a month, plus about $2,000 in principal, so $2,400 total. In the last year that rate has jumped to 2.5%, meaning their payments are now $3,000 per month. We’re barely even getting started, if rates get to 20% like in the 70’s that payment will increase to over $10,000 per month. A LOT of people are going to lose their homes.
i think bad credit or anticipation of market improving or ability to unload the house. it's not ideal, but somexs when ppl have bad credit this looks like a better deal. (never had one myself, but thinking that is the logic)
It is much more ominous. We can talk about rate hikes and economic collapse all we want. But none of that talk can even scratch the surface of reality. When you or your neighbours are losing your houses, or fighting for food in a manufactured food shortage.
Here in Canada virtually everyone in my circle of friends has about 500k in mortgage debt. People with variable rates paying 1% last year would be paying about $400 in interest costs a month, plus about $2,000 in principal, so $2,400 total. In the last year that rate has jumped to 2.5%, meaning their payments are now $3,000 per month. We’re barely even getting started, if rates get to 20% like in the 70’s that payment will increase to over $10,000 per month. A LOT of people are going to lose their homes.
i think bad credit or anticipation of market improving or ability to unload the house. it's not ideal, but somexs when ppl have bad credit this looks like a better deal. (never had one myself, but thinking that is the logic)