A friend of mine is struggling financially (welcome to the club, right?), and is making "interest only" mortgage payments, and has been for a long time. Yes, there's nothing wrong with a mortgage lender doing that, its part of the system.
A mortgage lender's priority is profit, not compassion.Capitalism is not compassionate , nor is it supposed to be. (If it were, I might like it more.) The popular notion among conservatives that welfare is not compassionate because it reduces people to dependency is as absurd as the notion that capitalism is compassionate because it provides work.
Hiring someone is compassionate only when you pay more than you have to. Nobody ever does that deliberatley; profit maximazation precludes compassion.
So the mortgage lender allows financially strapped people to make interst only payments. How compassionate!
What would I do to change it? Maybe if mortgage lenders were more willing to refinance borrowers who are financially distressed. Interest rates are determined by the lender, not the law.
No risk for the lender, no equity for the borrower who in this case is a good friend of mine. I might feel a bit more favorable towards the lender if they would allow even just the tiniest smidgen of equity to acrue to my friend. But no, that isn't the way the capitalist system works. Sometimes I wish it worked a bit differently.
by Bob Bond
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