Originally Posted by
Forgotmywallet
You have people with middle class dual incomes taking out 30 year notes at 50. With no means to make that payment at age 80. So the “forever” home is not forever as they realize they have to downsize. Average retirement savings in the US can’t cover a $2300 payment with taxes and no job.
America's financial literacy rate is well below where it should be. Today that dual income, middle class couple live in a house only rich people could afford a few years ago. The 30 year mortgage is "tomorrow guy's" problem. Inflation may help them make an exit 15 years from now. The problem they could face is downsizing from a 2.25% mortgage to a 5% mortgage, when they realize retirees cant afford $2,300 + Tax, Ins & HOA.