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thunder_struck85 t1_iwwdwa1 wrote

Reply to comment by CrystalMenthol in Home sales fell for the ninth straight month in October, as higher mortgage rates scared off potential buyers by ChocolateTsar

Why do people continue to call it free money? There's nothing free about it. You still borrowing an enormous sum that has to be paid back in full. No different than borrowing a mediocre sum at a higher rate.

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CrystalMenthol t1_iwwe7m0 wrote

They call it free because you borrowed it for almost free. It's like if I rented you a car for no money, you'd have no problem saying "I got this rental car for free!" You still have to give back the car / pay back the loan, but you got to use that car/money during the rental/loan period.

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thunder_struck85 t1_iwwk7mj wrote

But you still didn't borrow it for almost free. It's a stupid saying. Borrowing $1mil at 1% is still not free. That's still a lot of money in interest if you're buying an item that has no real return.... like a house you don't plan to flip but live in long term.

Nothing free about it.

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Ag0r t1_iwx96a9 wrote

If the loan's interest rate is lower than inflation, it is literally free. Many many Americans have mortgage rates lower than 3% which means the value of the debt is shrinking more then the debtor is charging for it.

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