Conor Dougherty

So you can actually lower your rate over time, which I did not too long ago.

So you get all the benefits of a fixed rate with none of the downsides.

And that is why we have a really high home ownership rate.

Now,

Let's talk for a second.

Why would the government want to make it easier for people to borrow money?

Well, the reason is if you're borrowing money to buy an asset, a home, something that's going to hold its value, hopefully increase in value, it's kind of different than running up a credit card bill to get takeout one night, right?

So the government has all this financial plumbing system.

created because it wants people to buy a stable asset.

It's stable for their family.

It has forced savings.

Even if the home doesn't appreciate or appreciates not very well, you're still saving all that money, which you would not be doing if you were just renting.

So you're borrowing all this money to kind of create stability.

You create people who are rooted in neighborhoods.

You create an asset that people can own and pass to their children.

You create a form of retirement savings.

Yeah.

Homes have become much more expensive.

There are a lot of complicated reasons for why they become more expensive, but the way that people see it is that mortgage payment.

There's an adage in the real estate industry that says, you don't actually buy a house, you buy a payment.