Down payments are the bedrock of the housing market. Large down payments preserve home ownership, reduce volatility in the market, and reduce the risk to our financial system. The only people who oppose them are realtors and originate-to-sell lenders who see down payments as an impediment to profits and left-wing housing advocates who see down payments as a barrier to putting unqualified borrowers into houses. Down payments preserve home ownership because people who’ve put down large down payments rarely default. In purely economics terms, people shouldn’t consider sunk costs like down payments in their decision making. However, homeowners do. People...
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I do think higher down payments, lower interest rates, and better under writing have provided a stronger housing market.
Now if they could only do it with normal inventory levels, we might have something.
Downpayments are for ASSHOLES! The bank is supposed to silent second the downpayment for the housing buccaneer. Everyone knows that!
Downpayments are for serfs ..(you know.... people who aren't "Friends Of Ben").
"Friends Of Ben" get free money, and they pay cash...... for all their homes.
The downpayment is the last defence. But if tax payer's money is not involved, who cares about the downpayment? The bank can give the money away with 0 downpayment if they want to take the risk.
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