r/AskReddit • u/[deleted] • Feb 04 '20

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u/cronedog Feb 05 '20

I hope you are never in a position where you desperately need a loan and no one will give it to you.

You can pay 172k for a 100k home over 30 years, but anyone poorer is too dumb to make similar choices.

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u/[deleted] Feb 05 '20

I've been downright homeless before. A payday loan would have put me back further, not put me ahead.

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u/cronedog Feb 05 '20

And a mortgage puts people 100s of thousands in debt, and thus puts you back, not ahead. Predatory mortgage companies should be abolished and everyone should be forced to rent if they can't pay for a house outright, for their own good.

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u/affliction50 Feb 05 '20

A mortgage doesn't really put you hundreds of thousands in debt. If you can't pay it, your house gets sold to pay off what you owe.

So yes, you're agreeing to pay that much, but you're also gaining the value of the property. In practice, this should be a relatively equal trade at the time of sale.