/biz/ - Business & Finance

yeah, i'm thinking we're due for another leg up

problem - the price of homes fluctuates, and if you take out a mortgage when the market is high, e.g 700k mortgage on a 1M house (300k down), on a 5 year term.. if you buy high and at the end of the term your house is now worth only 650k, you now owe the bank 350k, and you only have 300k equity in the house... the bank now just basically robs you of your life savings, they take the 300k difference from you. you are left with nothing and are now homeless.