Except now they can sell the home. Which probably has appreciated on value since the loan. Plus the loan interest since it was purchased originally. And payments at the front of a mortgage are almost entirely interest since the principal is so high.
Any recession can cause a downward pressure on house prices at the same time as difficulties paying for a mortgage. You may not be able to sell the home for enough to pay off the mortgage when you get into trouble.
Yeah, that idea is very 2007. The 08 crash was a great time to buy a house if you still had a job because a lot of foreclosed houses were for sale for way less than they’d been bought for by their previous owners.
Except now they can sell the home. Which probably has appreciated on value since the loan. Plus the loan interest since it was purchased originally. And payments at the front of a mortgage are almost entirely interest since the principal is so high.
Any recession can cause a downward pressure on house prices at the same time as difficulties paying for a mortgage. You may not be able to sell the home for enough to pay off the mortgage when you get into trouble.
I have never in my life seen house prices go down. They just quit going up as fast.
In my life I’ve had two times when they went down along with unemployment going up.
The 2008 crash and a local crash due to the biggest employer in town being on the verge of bankruptcy in the 1990s.
Yeah, that idea is very 2007. The 08 crash was a great time to buy a house if you still had a job because a lot of foreclosed houses were for sale for way less than they’d been bought for by their previous owners.
You’re right, I had a brain fart