The bank reposses homes, so pay it off quick. Fear reduces the wealth accumulation effect. The depression symbolized a massive reshuffling of home ownership and loss of ownership. People who lost their jobs could not pay for their homes. In the 1950s a home cost between 2500-5000 dollars. Original mortgages were designed to be paid off within 10 to 15 years. The 30 year mortgage forced homeowners to pay up to three times the values of the original purchase price. The more equity the home acquired the less money paid in interest. Eventually after thirty years the home was paid for and the title delivered. In the 1990s, the wealth accumulation was equity in the home. Home owners were using the equity to borrow and invest in other homes or improve their existing homes. Money shifted from savings accounts to real estate as low interest fed policies inticed money to move from the bank into the market.[Learn More ...]

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