Comment on A conundrum
PeriodicallyPedantic@lemmy.ca 4 weeks agoyou need to pay us interest because we’re taking the risk. Also you need to give us a down payment to offset our risk.
Comment on A conundrum
PeriodicallyPedantic@lemmy.ca 4 weeks agoyou need to pay us interest because we’re taking the risk. Also you need to give us a down payment to offset our risk.
null_dot@lemmy.dbzer0.com 4 weeks ago
Correct.
Less down payment means more risk and therefore more interest.
Its pretty simple really.
PeriodicallyPedantic@lemmy.ca 3 weeks ago
But if you don’t pay, they get the house. There is no risk of loss, only risk of not maximizing profit.
null_dot@lemmy.dbzer0.com 3 weeks 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.
PeriodicallyPedantic@lemmy.ca 3 weeks 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.