How A. P. Giannini Revolutionized America with the 30 Year Self-Amortizing Loan

A. P. Giannini popularized the 30 year self-amortizing loan, a revolutionary concept that made home ownership accessible to the middle class. This loan allowed homeowners to gradually repay the cost of their home over 30 years, making the payment amount similar to rent. Prior to this loan, home loans were typically balloon mortgages, which required borrowers to pay the full amount after a few years. This made it difficult for the average person to keep their homes during financial crises or changes in credit rating. Giannini's 30 year loan introduced stability and affordability to the housing market, enabling more people to buy homes with a reasonable down payment.