本文发表在 rolia.net 枫下论坛1. If the family income is low and is so sensitive to interest rise, most families will use a longer term mortgage (3 to 5 years) instead of a short one as the author mentioned
2. Interest rate over a longer term may rise, but house price over a longer term will rise or flat, or at least not drop 20% percent.
3. People with low income can avoid risk in a totally different way: they can make only minimum downpayment (5% or 0), get a longer term, and pay as little as possible every month. If unfortunately their home price go down dramastically, they can return the house to the bank and move out. For example, you bought a 200k house with 0% payment and 25-year amortization period, and after three years the mortage amount is 19k and house worths only 150k. What to do? Tell the bank that you do not want the house anymore. It is the bank that will lose about 40k, not you. You still lost a little bit but not too muchinterest rate
4. 12% interest rate is really hard to see in the near future. If you do see, you may also see at the same time higher salary, higher living cost, more jobs, perhaps hot economic activives as well. So if you can earn more, you do not mind pay more.
5. Of course, if you can buy and hold for 10 years or longer, you can not lose a lot - and most people do this if the house price really drops a lot in a shorter term.
6. Even in the worst case, house itself should not lead anyone to bankcruptcy. You can always give it back to the bank, move back to apartment or to street, the worst. Bankcruptcy happens when you continue to spend by borrowing, especially though credits.更多精彩文章及讨论,请光临枫下论坛 rolia.net
2. Interest rate over a longer term may rise, but house price over a longer term will rise or flat, or at least not drop 20% percent.
3. People with low income can avoid risk in a totally different way: they can make only minimum downpayment (5% or 0), get a longer term, and pay as little as possible every month. If unfortunately their home price go down dramastically, they can return the house to the bank and move out. For example, you bought a 200k house with 0% payment and 25-year amortization period, and after three years the mortage amount is 19k and house worths only 150k. What to do? Tell the bank that you do not want the house anymore. It is the bank that will lose about 40k, not you. You still lost a little bit but not too muchinterest rate
4. 12% interest rate is really hard to see in the near future. If you do see, you may also see at the same time higher salary, higher living cost, more jobs, perhaps hot economic activives as well. So if you can earn more, you do not mind pay more.
5. Of course, if you can buy and hold for 10 years or longer, you can not lose a lot - and most people do this if the house price really drops a lot in a shorter term.
6. Even in the worst case, house itself should not lead anyone to bankcruptcy. You can always give it back to the bank, move back to apartment or to street, the worst. Bankcruptcy happens when you continue to spend by borrowing, especially though credits.更多精彩文章及讨论,请光临枫下论坛 rolia.net