Not sure if you’re in America but credit scores are some rigged ass bs. What do you mean paying off a loan made my score lower?? I have more disposable income!
Landlords don’t care if your rent is sustainable for you in the long term. They have nothing to lose if at one point you can’t afford it anymore, someone else will.
Banks on the other hand care very much if you’ll be able to pay your loan in full. Even with the house as collateral, it’s much better for them if you just paid your loan instead of them having to deal with all that.
They only get to force the sale of the house to recoup their loan, you get to keep the extra from the sale. House sells for $300k, you owed $250k you walk away with $50k and the bank gets their money back.
I can walk into a bank today with a mortgage cheaper than rent, and I’ll be denied cause I don’t make enough money, explain that logic to me.
Not sure if you’re in America but credit scores are some rigged ass bs. What do you mean paying off a loan made my score lower?? I have more disposable income!
You’re no longer proving continously that you can keep paying reliably (yes it’s dumbass logic)
Landlords don’t care if your rent is sustainable for you in the long term. They have nothing to lose if at one point you can’t afford it anymore, someone else will.
Banks on the other hand care very much if you’ll be able to pay your loan in full. Even with the house as collateral, it’s much better for them if you just paid your loan instead of them having to deal with all that.
“they get the house if you don’t pay” really isn’t so great after you’ve look at what they actually get for those houses.
Generally, people don’t get foreclosed on when their house looks super fancy and well maintained.
They only get to force the sale of the house to recoup their loan, you get to keep the extra from the sale. House sells for $300k, you owed $250k you walk away with $50k and the bank gets their money back.
Also debt is an asset for banks. Having people in debt for 30 years is better than having people in debt for 10 years and then selling their house.
Have you tried lately? Just curious.
If something were to happen, and you couldn’t make rent, you might get evicted, which would be inconvenient.
If something were to happen, and you couldn’t make the mortgage, the bank might lose money, which is unconscionable.