News
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
view the rest of the comments
I would disagree with you on the pedantry. There would be two separate transactions: a buy buys the property from the seller, and the borrower borrows from the lender.
The property is treated as collateral, but the buyer/lender is the owner of the property. Mortgages are a bit special different from most common consumer debt because of the timing- the transactions need to be simultaneous because you need to have the collateral to get the money, and you need the money to get the property, but afterwards you still have ownership of the property.
Whether it's a mortgage, a car, putting a latte on your credit card, or a multi-billion dollar corporate acquisition it's the same.
That aside, the rest of your comment I agree is good advice to consider, but it's just part of the equation. You're assuming the mortgage is actioned as plan throughout it's lifetime. However, the borrower has options. They might want to pay early and will save a lot of interest that way (maybe more than just interest if they have PMI). There's also the option to refinance out of a higher rate later on.
Also... You're comparing two different things by asking if a house listed for $300,000 is worth $700,000. In order to do a fair comparison, you need to do the same calculation for every house you consider and for the entire market you're basing your expectations around. The only houses worth $300,000 when you factor in the interest of a 30 year mortgage would be a fraction of that cost. Or if you're comparing to the alternative of not buying, then what you really need to compare is the cost of renting vs the interest you expect to save in whatever period you expect to defer buying for.