Meanwhile we pay the bank 4.85% of 245.000 yearly for 30 years (ok, it's less now for sure) but that 4.85% would amount to 349.000 euro's for the banking system, just for signing my debt into existence. In this way they constantly squeeze society.
If you do the math you see that you pay over 300 a month to decrease the debt while paying about 1000 in interest. If housing prices rise more than wages at some point both parents have to work full time and can afford less and less luxury items. Then we are at "maximum squeeze".
Can you imaging that my parents once payed 12% mortgage interest! of course houses were cheaper then (this was early 80's) but still.
People with 2 incomes by the way can save a full income (although I know some people that really can't afford to have one parent at home), they really don't feel anything, but banks are eating away are our wealth people, wake up. And when the banks fall because they took to much risk, they require our money again, to be saved!
Yeah, it got up to around 17% in the US back in the 80s. It sounds crazy, but I've actually been told that it doesn't matter too much because the house prices would be lower to compensate for it (because people don't magically have more money to buy stuff, so if the rate goes up the house prices have to go down).
I've actually read that it's better to get a high percentage mortgage, especially if you know that mortgage rates are about to go on a downturn, because you can buy a house at a much cheaper sticker price than you would normally, and then you can refinance your mortgage once the percent goes down and get the lower mortgage rate on top of that!
It's actually supposed to be a lot worse to get a house with a low mortgage rate when they're about to start shooting up (which is right when we bought a house, four months ago, yay), because a) you won't want to refinance to a higher mortgage rate, and b) if you do decide to sell in a higher mortgage rate market, then the sticker price of your house is going to have to go down quite a bit to reflect that in order for the house to sell, so you might end up losing money on your house, or at least see much more reduced gains.
It's politically beneficial to make slogans about housing for all, education for all, etc. and then institute policy to distribute cheap money. Least time we did that, you know what happened (2008).