Something I find interesting about 30 year loans is that they’re not just aimed at young people. To me it seems that a 30 year loan only makes sense if you’re 35 or much younger, otherwise you’ll never pay it off! (let’s not even discuss 40 year loans)
The shift in judgement is that houses are *not* just things to pay off, they are retirement savings and the bigger chunk you can get hold of NOW, the more lavish a lifestyle you will have when you retire. If you still owe money on your house when you retire, that doesn’t matter because it will be worth 40 million bucks!!!
There are too many people that think their house is their retirement. They looked at the last 4 years and extrapolated that out for another 20 years.
