I need your help.

Make a comment below and tell me what you hate the most about home mortgages with banks.

Thank you!

USURY. It goes against Gods law.

They stopped honoring "extra" payments made to reduce the overall loan amount, thus retroactively reducing the monthly interest payment. Instead they would remove the "extra payment" from the last day of the 30-year mortgage, thus no change in upfront interest fee payments.

UNable to pay down the Higher interest fee, I just paid off the mortgage in full, and they wanted to charge me for doing that as well. (I fought that too, I forget how, but I didn't pay for the privilege of paying off my loan.)
Ridiculous!

How should we reinvent the system? I know its a lot to type, but does it look like I’m fooling around? I’m serious about this.

How ? ... ok both lenders and borrowers need to be considered equally. If the lender is not compensated there is no incentive. Purchasers want equity over time / lenders need security of repayment upfront. It's a balancing act.

Maybe the lender gets the equity less interest paid, and then you have to consider the location, more qualifying / assessments will be needed.

The rules & regulations are unique to the circumstance depending upon who will be the lenders and where and what type of purchase?
Banks?
State Govt.?
Community as a collective?
Land owner or Builder?

I think the only way this will work is if the lender in this case is a very very non-traditional sort of lender. Will be hard to reinvent this without completely thinking outside the box.

perhaps we consider a model where market value plays a role in capital requirements? similar to margin trading a stock or futures contract, a certain amount of capital need be in reserve to cover the position.

we’re moving to a world where manufactured boom and bust cycles will no longer exist. that inherently means that the systemic risk is lower, if managed properly.

absolutely not advocating for people to be overlevered, but we do have to recognize that the current model is based in the current financial regime where every debtor is immediately assumed as ‘going to default’ and the bank has to hedge that counterparty risk.