Quote:
Originally Posted by retiredguy123
I didn't say that it did. But, people who make a 20 percent down payment are much more likely to avoid a foreclosure, when the cost of living increases, than those who have little or no equity in their house. Obviously, if you depend on your income to make mortgage payments, and you lose your job, you cannot make the payments.
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Which means that requiring a 20% downpayment doesn't make it more likely do do anything at all - other than make someone lose more, when their circumstances change and they're no longer able to pay for their mortgage.
If you don't depend on your income to make mortgage payments, you're less likely to need a mortgage in the first place.
We had almost all of our principal paid on our home up north, and were paying back a home equity loan to cover the cost of a roof replacement. And then - the company closed shop and put beloved spouse out of a job in a skilled trade where new-hires now come in at just barely higher than minimum wage. So he couldn't get a replacement job. We were going to move only 2 years later, but when the company pulled the plug we knew that we'd already be in foreclosure by then. That's why we came here when we did.
We had to sell our home and move to Florida to prevent foreclosure.