Originally posted by uzlessif you walk away from the loan, the bank eats it.
I think you have to look at the fundamental issue first.
Does this make sense? You get a $200,000 mortage to be paid back over 20 years. With interest you will have paid approx $400,000 to the bank so the bank will make a $200,000 profit from you just by lending someone else's money to you.
This is highway robbery. Our banking system is not on ...[text shortened]... is context, does anyone think reducing the amount of interest paid on a mortgage is a bad idea?
but they don't REALLY eat it. they charge higher interest rates to schmucks who walk in the door after you did.
basically.