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Comment by sschueller | Hacker News Reader

Yet I can't get a 0% interest load anywhere. How does this benefit anyone other than large institutions?

No, but you can get a ~3.5% 30 year fixed mortgage for the same reason.

And if the inflation hawks are right, that's a great deal - the capital you owe, and the interest you need to pay, will vanish within a couple of years and you'll still own the house.

Banks clearly don't think there's much risk of long term high inflation.

The bankers are not the ultimate buyers of mortgage bonds. The Fed is. So, these low interest rates are not a predictor of lack of inflation, but a reflection of policy. The government is taking this risk.

"The government is taking this risk" meaning the Tax payer. Which is you and me but not people like Bezos or Musk.

That's not how a sovereign budget works.

If inflation goes up and ratings go up, mortgages get expensive, and then housing more unaffordable.

Your debt is liquified but your house value also goes into the crapper.

Over 30 years, though, your salary will go up with inflation, but your fixed rate mortgage payments will not.

And what happens to the 30% house value down at 5x leverage?

Banks have overhead, and want to turn a profit.

Also “the system” isn’t setup to be nice to you.

I got 0% on a $5,000 line of credit recently. Refinanced my house at 2.5%, etc.

Now you know what OP meant by “fake”

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