[babaganoosh89]

That's what 0% interest rates are like. Limitless amounts of money as long as the economy has enough confidence to use it.

[sschueller]

Yet I can't get a 0% interest load anywhere. How does this benefit anyone other than large institutions?

[xxpor]

No, but you can get a ~3.5% 30 year fixed mortgage for the same reason.

[iso1631]

And if the inflation hawks are right, that's a great deal - the capital you owe, and the interest you need to pay, will vanish within a couple of years and you'll still own the house.

Banks clearly don't think there's much risk of long term high inflation.

[new_realist]

The bankers are not the ultimate buyers of mortgage bonds. The Fed is. So, these low interest rates are not a predictor of lack of inflation, but a reflection of policy. The government is taking this risk.

[sschueller]

"The government is taking this risk" meaning the Tax payer. Which is you and me but not people like Bezos or Musk.

[xxpor]

That's not how a sovereign budget works.

[conanbatt]

If inflation goes up and ratings go up, mortgages get expensive, and then housing more unaffordable.

Your debt is liquified but your house value also goes into the crapper.

[new_realist]

Over 30 years, though, your salary will go up with inflation, but your fixed rate mortgage payments will not.

[conanbatt]

And what happens to the 30% house value down at 5x leverage?

[NegativeLatency]

Banks have overhead, and want to turn a profit.

Also “the system” isn’t setup to be nice to you.

[post_break]

I got 0% on a $5,000 line of credit recently. Refinanced my house at 2.5%, etc.

[adammunich]

Now you know what OP meant by “fake”