You are thinking about buying a house in London. You find one you like that costs 1,000,000.

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You are thinking about buying a house in London. You find one you like that costs £1,000,000. You learn that, based on the value of the house and your wages, your bank will give you a mortgage for 20 years in the region of £600,000. This means that you must make a down payment of £400,000. What are some of the monetary and non-monetary opportunity costs of this purchase?

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3E Economics

ISBN: 9781292411019

3rd Global Edition

Authors: Daron Acemoglu, David Laibson , John List

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