I’m always a little skeptical when I see the term “expert” in an op-ed title these days, but in this case he seems to know what he is talking about.
“I’ve had many clients with amortizations, that are 70, 80, even 90 years remaining, in the extreme cases, and that’s simply because their payments are not going towards any principle at all,” he said.
“It’s mainly because the payments are strictly just paying interest to the bank, they’re not paying down any of the principal payment at all.”
Many of these same “experts” are getting worried about infinite mortgage amortization, but it’s unlikely anything will be done about it for one simple reason: monetary authorities fear a 2008 style wave of mortgage defaults far more than they fear 90 year mortgages. These authorities previously assured us that only good things can come from zero percent interest rates, and unfortunately a large portion of the population believed them.