Okay, but to some degree housing cost value increases benefits people currently in homes by increasing their property values, rather than lowering them. You don't have to live in one house for 50 years. Buy a house, watch your value increase in 2-5 years, sell, now youll have enough equity to put 20% down and chose a 30 year. I think we are at a stage where most market salaries are under valued, while at the same businesses are forced to increase prices due to outside factors. Every new house built around me is 300k+. 2 people who only make a total of 80-100k a year may have a hard time buying that with 15k down FHA loan and then having to pay 2,500 a month. Somethings gotta give, but devaluing the economy with high interest isnt going to help, and it hasnt..
Should it be legal? I supposed. The same way Adjustable Rate Mortgages should be legal. Wise, probably not.
If I am a bank and am writing a 50 yr loan, my rates are going to be on the high side. The longer until I get repaid, the more risk. More time for something to go pair-shaped.
On a 50 yr loan, for the first number of years you are mostly paying interest and little principal, right? So you could pay for years, pay the property tax, pay the maintenance and repairs, and when you go to sell find our you have very little equity still. Bummer. And if you bought at the current over inflated prices, in a couple of years you will not only NOT have made much of a dent on the principal, but you'd most likely also be significantly upside down.
But legal? Sure, why not.
The market crashing to reduce cost isnt a good thing.
You say that as if there is going to be a choice.
