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Anyone else get the feeling that massive amounts of cashout refis are what's holding this economic house of cards together? With the crazy low rates we saw the last 2 years and all these people refinancing as their house prices went up is it crazy to think people started treating the house like a piggy bank to pull out an extra $50k and that's what they've been really living off to offset inflation costs or why so many people decided to drop out of the workforce?
How long before that money dries up and people find themselves in situations they can't afford?
Could be — people that bought a house say 2 years ago might have $150k in extra equity now so they borrow against it. Some of those loans might be variable rate too so the payment keeps rising. If prices of everything keep rising I would think that money will be buying less and less.
Anyone else get the feeling that massive amounts of cashout refis are what's holding this economic house of cards together? With the crazy low rates we saw the last 2 years and all these people refinancing as their house prices went up is it crazy to think people started treating the house like a piggy bank to pull out an extra $50k and that's what they've been really living off to offset inflation costs or why so many people decided to drop out of the workforce?
How long before that money dries up and people find themselves in situations they can't afford?
Didn't you yourself take a cash-out refi within the last couple of years?
And now you think that it's crazy that people were treating their houses like a piggy bank and the market is going to come crashing down because others did what you did?
Didn't you yourself take a cash-out refi within the last couple of years?
And now you think that it's crazy that people were treating their houses like a piggy bank and the market is going to come crashing down because others did what you did?
Isn't there a word for that?
I sure did not and never have and never will. I have no mortgage on my home and 100% equity. But I own my home outright free of all obligations except the annual property tax bill and want to keep it that way.
Its exactly the same stuff that got us into 2008 mess. Nothing was learned. People treating their homes like piggy banks again. Its going to blow up eventually!!
Didn't you yourself take a cash-out refi within the last couple of years?
And now you think that it's crazy that people were treating their houses like a piggy bank and the market is going to come crashing down because others did what you did?
Isn't there a word for that?
Yes I did. The difference is I reinvest that money to earn a higher rate of return then it’s actually costing me so that money doesn’t run out it grows vs the average person who uses it to buy their new $60k Ford bronco, or have a pool installed, or stop working. Huge difference.
Yes I did. The difference is I reinvest that money to earn a higher rate of return then it’s actually costing me so that money doesn’t run out it grows vs the average person who uses it to buy their new $60k Ford bronco, or have a pool installed, or stop working. Huge difference.
Good for me, not for thee. Solid justification as you have no idea what the other people would be using their funds for or what their rationale is
People spend so recklessly and yet I'm supposed to feel sympathy for them and want to bail them out. First it's 401K loans, next it's equity refinancing. Then there's credit card debt and student loans. I'd love to see a deflationary implosion to teach human being a lessons about excesses that previous generations were taught, but these days we vote ourselves more bailouts and pork.
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