djrobsd – we are being so blinded by the flash of the bubble burst that sometimes we forget that macroeconomic dynamics are propelling us to high inflation regime. That means, his 475K loan today is already worth half of that in 10 years when he has to repay with cheap $. When $ declines, real estate prices go up due to the natural forces of inflation. That 475K will be barely sufficient to by a small condo in 10 years – think $8 gas, $15 minimum wage, $2000 rent for a one bedroom apartment, $2000 per Oz Gold, $300 Bbl oil – you get the picture. He will be paying $3000 per month on a monthly salary of of $20K! When everything else doubles, his repayments will look puny.
