“Across the life of the loan the banks borrowing costs are and will be well below the interest rate he is paying.”
That is a big assumption and is only true if the government subsidizes the bank with cheap money like they are now for the next 40 years. By the way I happen to agree with you. I think the banks and governments are telegraphing their next move which is to keep money for mortgages cheap forever. If they can’t borrow it, they will print it. All in the name of “keeping housing affordable” so people can realize the American dream. If I am correct, this “mandate” will be payed for by the government in the same way they pay for the other “entitlements” which is to say that they won’t be paid.
