In fact, it's not a home equity building loan, either. The only one building equity in the home is the person paying the mortgage.
Absent a loan from your mom or some such, the only people for whom mortgages build wealth are the lenders/mortgagees, not the borrowers/mortgagors.
15 year variables have been available for a long time, if you could afford the larger monthly payment and bear the uncertainty of fluctuating interest rates.
BTW, the first 5-7 years of a 15 year loan is near the mid point of the life of the loan. Near the 15 year point of a conventional 30 year mortgage, you are building equity, too.
Another alternative, of course, would be a 30 year mortgage that did not apply most of the early payments to interest, but apportioned PIT evenly over the life of the loan. Not gonna happen any time soon without govt intervention and govt will not be intervening any time soon.
So, I guess the drill is to be grateful for this deceptively-named form of loan?
Meanwhile, banks have been borrowing from the Fed for an interest rate of next to nothing without a mortgage or paying extra points up front to lower the interest rate. I'd like that deal.
BTW, I take issue with some of the facts in the underlying article. For example, underwriting standards have not been getting looser for 50 years. That did not happen until after repeal of Glass Steagall.
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