Of course the rich
"no...they strategically default."
There's an old saying, it's so old that the numbers really need revising, but the basic premise is valid.
I disagree with you, but I'm pretty sure
They do honor their financial obligations. They pay a higher default premium to cover the defaults.
If only we could get liberals to pay their own way.
They define 'the rich' as someone who took out a jumbo loan, right?
At market peak, a shacktacular tear-down in the scariest part of town was going for over $500K if it was a stand alone structure.
"How is that? Most "rich" people have excellent credit scores, so why would they pay higher interest rates? "
It's standard. With ideal credit an investor will usually pay at least 1% more than the same applicant buying for personal use. It's been that way since time began.
The rich pay their way by paying a higher risk premium than other borrowers.
You disagree or have a question?