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me_irl
(lemmy.radio)
no way! me too
Easier to replace a renter who stops paying than foreclose a home occupant that stops paying.
Mortgage is more expensive because you are paying the premium for flexibility of becoming homeless with less hustle.
Well yeah, that $1500 rent is paying your landlords mortgage, which the bank also owns. So you see, they would make less money if you get out of there.
I will play devil’s advocate and note that when you own a home you are responsible for all the costs of the house, not just the mortgage. I’ll see myself out.
And I'll just note that any landlord is going to charge enough in rent to cover all the costs of the house, not just the mortgage, as well as profit for themselves. Otherwise they're not going to be a landlord for long.
Good point, but I think we all know that's not the reason.
Devil's advocate...it's not the $950 monthly mortgage, it may also be the $15,000 down payment?
There's the $3000 roof, $5000 for the leaks in the basement. If you don't fix the roof or the basement, the house is worth less to them if you default.
The bank really does not give a fuck, it's just a risk to them.
Also the loan they're making you on $950 is tiny. They want a hell of alot more money.
Ain't that the truth. In the past 2 months my garage door spring, water heater, and dryer unit all decided to take a shit. Drained my savings pretty quick.
Same. It's a good thing I pay hundreds less per month on a mortgage instead of the going rent rate, which enables me to have savings in the first place. Not being forced to move every year and incur the equivalent costs of an appliance or two also helps.
I'll add to this a bit. I know so many people who want to buy a fixer upper to save money. We went that route, and while my mortgage is sort of low, the repair costs are insane. I did all the work myself, and we spent over $100k in 5 years. Houses are expensive to own if you care about them.
Fixer uppers are better the less you give a shit. For example mine i will be sealing the basement and redoing the bathroom. Aside from that i don't give a fuck about the dated walls and floors. I don't care about the kitchen cabinets or the stains on the counter top.
Give less shit, and give more time. Fix the absolutely major things now, and do something smaller every year. Unless you're planning to flip the thing, you have time.
Mine was the look under the siding and find shitloads of water damage. Don't tell the county how many studs I replaced.
Add that to the horrible repairs done prior and I've been working constantly to get it to "not giving a shit" levels of OK. Sucks a bit, but I love our home now. Landscaping isn't done yet though.
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Don't worry. That same bank will give you an auto loan for $750/mo for 7 years at just 9% interest. That way you'll always have a place to live....
💀
The neat part about fractional banking is that the bank is allowed to just "create" money out of thin air and issue the debt to you. They don't have to have the money to issue the mortgage. They don't care that your debt is "risky" because investment banking is really just run off of vibes at this point.
Historically and today, discrimination has been a big factor in who gets approved for mortgages.
The entire concept of risk that not explicitly based on the individual, like extrapolating from population data, is discriminatory to the individual
Banks like making money. Mortgages are a great way to make money for a bank.
If you're being turned down by the bank, it's not because the bank is passing up an opportunity to make money in order to keep you from owning a home. It's because their risk models say that if they give you the loan, they might not make money.
If you’re being turned down by the bank, it’s not because the bank is passing up an opportunity to make money in order to keep you from owning a home. It’s because their risk models say that ~~if they give you the loan, they might not make money~~ they think they'll make more money loaning that cash to your landlord.
Banks fuck up all the time. They are not run by immaculate money wizards. The idea that you aren't getting a house loan because you're a big risk, but Sam Bankman-Fried secured $60B because FTX was a safe bet, hasn't born out in practice.
They do show a heavy bias towards people who already have (or appear to have) a great deal of money. So that institutional bias fucks individual lenders over in the long run, while creating a great deal of financial risk at the top of the wealth pyramid.
I wish we had a love for landlords sub so I could roleplay like half the people in these comments.
Honestly tho. Imagine simping for landlords in this day and age. Gross.
I’ve rented, and I’ve owned. I prefer to rent, if that means I simp for landlords then I guess I simp for landlords.
Dude it's in the fucking name. What serf wants to be a fuckin serf?
Both renting and owning are costlier because of the parasitic landlord caste.
But the 1400 doesn't require any trust since if they can't afford that, they're out. If they can't afford the loan, the bank would be out the loan sum.
the bank would be out the loan sum.
the bank isn't out of jack shit, they reposess your house.
That's not completely true, because it depends on the future value of your house. Plenty of banks got burned in the early 2000s when they gave out too many loans and then all of a sudden the houses weren't worth what people owed on them.
I'll shed a single tear for those banks who reposessed those houses that are now worth an absolute fucking fortune when I get a house of my own.
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That $950 mortgage also doesn't include taxes and insurance plus the cost to maintain a house. All of that is wrapped into the cost of rent.
Mortgage calculators are deceiving.
That $950 mortgage also doesn’t include taxes and insurance plus the cost to maintain a house. All of that is wrapped into the cost of rent.
And the profit the landlord takes on top of that. Landlords don't generally rent out to break exactly even on cost.
Landlords also do cheaper repairs.
When it's your house you're likely to go for the higher quality options when the major repairs hit and do more timely repairs on things landlords will ignore.
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Even in the best of cases, landowners may not be generating a direct profit but are generating equity in the home.
I had to explain this to one of my landlords (he was a first time landlord and it was his old place) once a long time ago. He was quite shocked that he wasn't making nearly as much money as expected when the homestead exemption was lifted from the home. He tried to increase our rent well above the average for the area because of it and we had to threaten to walk.
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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.
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this post was submitted on 11 May 2026
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me_irl
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