ickplant@lemmy.world to Lemmy Shitpost@lemmy.world · 6 months agoA conundrumlemmy.worldimagemessage-square266linkfedilinkarrow-up11.67Karrow-down118
arrow-up11.65Karrow-down1imageA conundrumlemmy.worldickplant@lemmy.world to Lemmy Shitpost@lemmy.world · 6 months agomessage-square266linkfedilink
minus-squarenull_dot@lemmy.dbzer0.comlinkfedilinkEnglisharrow-up1·6 months agoCorrect. Less down payment means more risk and therefore more interest. Its pretty simple really.
minus-squarePeriodicallyPedanticlinkfedilinkarrow-up1·6 months agoBut if you don’t pay, they get the house. There is no risk of loss, only risk of not maximizing profit.
minus-squarenull_dot@lemmy.dbzer0.comlinkfedilinkEnglisharrow-up1·6 months agoForeclosing is a very expensive process. If you borrow 100% of the purchase price and the bank has to foreclose they would incur a loss.
minus-squarePeriodicallyPedanticlinkfedilinkarrow-up1·6 months agoOh no, their own process that they made for being given a house is so expensive, I feel so bad for them! Why are you defending them so hard? You just have to look at their quarterly financials. They’re making out like gangbusters.
Correct.
Less down payment means more risk and therefore more interest.
Its pretty simple really.
But if you don’t pay, they get the house. There is no risk of loss, only risk of not maximizing profit.
Foreclosing is a very expensive process.
If you borrow 100% of the purchase price and the bank has to foreclose they would incur a loss.
Oh no, their own process that they made for being given a house is so expensive, I feel so bad for them!
Why are you defending them so hard? You just have to look at their quarterly financials. They’re making out like gangbusters.