A quick re-visit on Seven Year Mortgages

I am not going to die on the hill of "Seven Year Mortgages", but I will point out a few advantages:

I agree that it is totally unrealistic for nearly everybody when we are talking about the median house price in the US of $400k or of a typical new-construction of about $600k, it is not beyond the imagination when talking about a $150k house in a medium-sized, mid-western city like Lansing, Michigan.

With 10%, the financing payment (not including property-taxes and insurance) is about $1900 a month. That is well within the reach of many two-income families.

Regarding the "crime" issue: It would vaporize all of the airy-fantasy, criminal justice tripe they were force-fed in college. Crime is bad in cities because well-to-do liberals in safe suburbs elect soft-on-crime judges and prosecutors. If more newly minted liberals lived in the areas impacted by crime, they would start demanding that city and county "justice systems" start doing their jobs. 

Regarding "lack of asset appreciation": I subscribe to the "rational market" theory where every seller is demanding a price whereby future appreciation is boiled into the price they are asking.

Regarding crappy schools: They are all crappy schools now, regardless of where you move. You either home-school or send them to private schools (good luck finding a solid one). Or, you can sell out when your oldest kid turns five and move to what you think is a "decent" school district. And, may I point out that if you waited a year before you tried to make a baby, you oldest kid turns five about...seven years after you got married. 

Regarding crappy construction: Yes, there are some crappy houses in legacy cities. There are also houses built with real, oak trim, fine plaster work and hardwood floors. Survivor bias means that the IKEA, throw-away construction houses are gone.

Regarding crappy neighborhoods: Pick a house that is very close to a church you are willing to be active in. Eat out at the closest pedestrian-friendly restaurant. Join the local bowling team. Walk your dog and chat-it-up with the other dog-walkers. Stay in your house after dark. Don't flaunt your wealth. Give every appearance of sinking roots rather than being a snooty tourist.