#20
After careful consideration I’m convinced you won’t/can’t get it. Storytime.
Jack and Jill save for years. They have $20,000. They want a home of their own.
They buy a modest ranch house for $100,000 and put their $20,000 on it as the down payment. That means they have a mortgage of $80,000.
Months go by. Jack and Jill are happy and paying their mortgage.
Housing values plummet. Their house is now worth $60,000.
Their mortgage is bigger than their house value. (The big number is the mortgage. The little number is the house value.)
Jack and Jill’s credit score goes down the tubes.
Jack and Jill can’t get a loan. They may not be able to buy a car. They may not have credit on their cards any more (if they have any.)
You: It’s their fault. They’re irresponsible.
Me: WTF?
