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lol no, the bank doesn’t care, they’ll just take your house if you can’t pay
You literally beat me to this reply by like 4 minutes haha. Banks were giving variable mortgages to people who could barely afford current rates, they don't give a shit.
I would never ever take an adjustable rate mortgage. That is just begging to get fucked. Like right now for example. My mortgage is like 4.2% but if it were an adjustable id be at like 6+% and be out of a house.
Sure, but the main reason they didn't care is because they were immediately selling the debt to a pension fund.
When the owner defaults, the bank doesn't even own it anymore, and someone else finds their pension is suddenly underfunded.
Or when the housing market is booming, they'll repossess the house and sell it again for even more of a profit.
Probably make as much use of the scam mortgage insurance that they can too. I forget what it's actually called but it's a scam IMO. $100 a month baked into my escrow for insurance to the lender in case I lost the house. To my knowledge it provides me no benefit.
Upside is when I refinanced it was taken off. (Think the whole first time home owner program requires it for the initial loan.)