Comment on A conundrum

• null_dot@lemmy.dbzer0.com ⁨2⁩ ⁨days⁩ ago

  Correct.

  Less down payment means more risk and therefore more interest.

  Its pretty simple really.

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  • PeriodicallyPedantic@lemmy.ca ⁨2⁩ ⁨days⁩ ago

    But if you don’t pay, they get the house. There is no risk of loss, only risk of not maximizing profit.

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    • null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

      Foreclosing is a very expensive process.

      If you borrow 100% of the purchase price and the bank has to foreclose they would incur a loss.

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      • PeriodicallyPedantic@lemmy.ca ⁨1⁩ ⁨day⁩ ago

        Oh no, their own process that they made for being given a house is so expensive, I feel so bad for them!

        Why are you defending them so hard? You just have to look at their quarterly financials. They’re making out like gangbusters.

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