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Comment by girvo | Hacker News Reader

Though for a lot of people those items are acquired via large amounts of debt, and at a much larger multiple of their income than in the past

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Part of that change is artificial. Mortgage interest rates have plummeted, which have caused prices to go up. The real median mortgage payment is about the same over the last 50 years.

This, unfortunately, also implies an explosion of interest rate risk. Given a fixed monthly payment, I'd much rather be paying it at high rates that have a good chance of dropping, than at low rates that have a good chance at rising.

Edit: Thank you, Americans, for your perspective! I understand now that you have fixed rate mortgages there. That's, for better or worse, not the case in Canada!

Most homeowners have 30 year fixed rate mortgages. There is no interest rate risk. If rates drop they can even refinance.

Most Americans I know, including us, have fixed rate mortgages. So there's no risk of rates rising on you.

It would take a very strange thesis indeed to persuade someone to pay a variable rate these days. I doubt that it happens

Ah, my perspective is coming from Canada where every mortgage is variable rate. ("Fixed rate" mortgages are only locked in for five years).

One would think that would cause US real estate to appreciate much faster than Canada when rates are low, but the opposite is the case. Strange days indeed.

* In Canada you technically can get a 25 year fixed mortgage, but the interest rate is 8.75%. That's a massive premium and I've never heard of anyone doing that.

https://www.ratehub.ca/best-mortgage-rates/25-year/fixed

If you want your monthly payments to be low initially, and you intend to pay off the mortgage debt fully within 5 or 7 years, then a 5/1 or 7/1 ARM can be a good option.

I don't understand this allergy towards debt. Oh no, people had the option to take out a loan to access capital they wanted to invest in themselves. If only we could be like the Europeans instead and waste public money to fund whatever stupid whimsy someone fancied rather than make them responsible for the productivity of their choice.

Because children were pressured by society into going to university, on what possibly was false pretences.

> whatever stupid whimsy someone fancied

strange description for democracy.

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