Myself, I have always been to repay loans and do it myself. I am fairly heavily amortized considering that I live in my house myself. Therefore, I am delighted when I read that so many want tougher demands.
Nor is it quite surprising those who are older, namely from 50 years and up, who are most interested in tightening these requirements. There, 7 out of 10 want tougher rules. When it comes to people from 15 up to 29 years, less than half think that they have more stringent requirements.
Comments that make me dark
On the site that I saw this, however, I found a comment that made me a little dark. There was one person there who said he didn’t see any great point in repaying the house. This is because the property still has a value of 30 years.
Certainly with the utmost security, the home will also have it. But to be absolutely sure of this is not possible. A few weeks ago read an article about cheap houses in the US. It was in some city that a whole area was basically uninhabited nowadays and there were a lot of houses to buy for just a few thousand kronor. The reason that nobody lived there was that the industries had been forced to kick people in the crisis and that after that there had been much higher crime in the area.
Now, of course, we should not be too afraid of the future, but this can actually happen where we live as well. Or something that is not as dramatic but will affect the value of the house. 30 years is a very long time and nobody can predict that far in the future. In 5 years an incredible amount can happen so what can’t you happen in 30 years.
Not then amortizing with justification
That the house is also worth money in 30 years does not seem like a completely smart idea. You cannot possibly know that the house is worth enough in 30 years to cope with an economic crisis. Instead, it is much better in my eyes to amortize some of it. If you were to repay USD 2,000 a month, for example, which is not very much for a family with control of their finances, this would be USD 720,000 less in loans. And then I have not counted on the saved money due to lower interest costs.
It doesn’t have to be any big sums but something like that as it makes the economy safer. Sure, investing the money can provide a better return, but you never know this. The amortized money will yield a return that is as high as interest expense. Then of course it is best to both amortize and invest money, but that is another thing.