Maybe it's my fever speaking through me right now, but after musings with a friend today, I really got thinking. Does anyone stay in/own their house for 30 years any more? I have only empirical data to back this up, but it seems to me that living in a home for a very extended amount of time is not as common as it was when 30 year fixed loans were created. In large cities or new developments where the housing boom flourished this year, it is easy to see that the turning over of property is much more frequent. Why then, are the instruments with which to buy property (mortgages) still only tailored to the long-term homeowner, when short term homeowners are becoming more common?
Obviously ARMs (adjustable rate mortgages) were an attempt to find common ground. This attempt was shortsighted to say the least.
There must be a way safe to reconcile the structure of the loan with the actual housing/living habits of the homeowner. I'm not a math wiz, so I haven't gotten that far yet...but let's keep pondering
