An idea so dumb..... (50 year mortgage)....

[Mr Natural]

There’s nothing saying you can’t make bigger payments. Everything above the required monthly payment goes to the principle.

 

[Mr Natural]

In addition, assuming you stayed in the same house for the full 50 years, the payments at that time will seem like pocket change.

 

[DGS49]

The main purpose of buying a house these days is to STOP PAYING RENT. Rent is almost literally, flushing good money down the toilet. You gain no equity, are subject to harassment in various forms by the landlord and so forth.

So buying a house under any circumstances accomplishes Goal #1.

For rational people, the signing of a mortgage note has two main elements: Making the minimum payments, and retiring the note as quickly as possible.

For perspective, consider a mortgage-backed line of credit for the purchase of a residence. It is a note with literally no end date. If handled according to its terms, its duration would be perpetual. But of course, the borrower would try to pay down the note over time, and eventually retire the debt.

The second major purpose of buying a house is the accumulation of equity through the appreciation of the value of the asset. Regardless of the opinions of naysayers, the increasing value of real estate over time has become as certain as "death and taxes," although the occasional market "correction" can change the timeline.

The third major purpose is to stabilize the monthly outflow, not being subject to rent increases over time from the landlord.

If a 50 year mortgage gets the monthly payment where the borrower/owner can tolerate it, it still makes sense for the three reasons mentioned above. In the normal course of life, the borrowers' income will increase, thus making it possible to pay down the debt according to a more aggressive schedule.

The ONLY reason to mock or disparage the 50 year mortgage is irrational hate for Donald Trump, and everything associated with him. TDS.

 

[CrazyTrader55]

The main purpose of buying a house these days is to STOP PAYING RENT. Rent is almost literally, flushing good money down the toilet. You gain no equity, are subject to harassment in various forms by the landlord and so forth.

So buying a house under any circumstances accomplishes Goal #1.

For rational people, the signing of a mortgage note has two main elements: Making the minimum payments, and retiring the note as quickly as possible.

For perspective, consider a mortgage-backed line of credit for the purchase of a residence. It is a note with literally no end date. If handled according to its terms, its duration would be perpetual. But of course, the borrower would try to pay down the note over time, and eventually retire the debt.

The second major purpose of buying a house is the accumulation of equity through the appreciation of the value of the asset. Regardless of the opinions of naysayers, the increasing value of real estate over time has become as certain as "death and taxes," although the occasional market "correction" can change the timeline.

The third major purpose is to stabilize the monthly outflow, not being subject to rent increases over time from the landlord.

If a 50 year mortgage gets the monthly payment where the borrower/owner can tolerate it, it still makes sense for the three reasons mentioned above. In the normal course of life, the borrowers' income will increase, thus making it possible to pay down the debt according to a more aggressive schedule.

The ONLY reason to mock or disparage the 50 year mortgage is irrational hate for Donald Trump, and everything associated with him. TDS.

No, it's not irrational hate for Donald Trump, as I've said a number of times. So you can stop spewing that nonsense. I voted twice for Trump.

Did you even read the thread?

What bank do you work for?

Because the only people who benefit from a 50 year mortgage - are the banks.

 

[drudge X]

No, it's not irrational hate for Donald Trump, as I've said a number of times. So you can stop spewing that nonsense. I voted twice for Trump.

Did you even read the thread?

What bank do you work for?

Because the only people who benefit from a 50 year mortgage - are the banks.

Refinancing is an option. I would get in first to secure the house rather than waiting for rates to drop really is low and join the bidding war. What we are seeing here is unrefined TDS in action by leftists. Banks are reaping benefits everyday through credit card debts. If you need 20 years to pay off the mortgage, you have two problems.

You purchased a home beyond what you can afford.

Your financial management needs work if you pay the minimum monthly.

I'll be glad to go with the 50 year mortgage in exchange for lower rates.

 

[leftwinger]

No, it's not irrational hate for Donald Trump, as I've said a number of times. So you can stop spewing that nonsense. I voted twice for Trump.

Did you even read the thread?

What bank do you work for?

Because the only people who benefit from a 50 year mortgage - are the banks.

It is better than Renting forever (they say).

But less good than buying with cash for say $550K.

So why is it any issue to anyone? Sure the banks make money. They take the risk to loan your deadbeat butt.

 

[JanetTheGreat]

No matter who proposed it, a 50 year mortgage is stupid. If Biden proposed the idea, I'd still hate it. Mortgages are a scam and the banks shouldn't be allowed to charge interest on anything. Interest should be completely illegal.

 

[leftwinger]

No matter who proposed it, a 50 year mortgage is stupid. If Biden proposed the idea, I'd still hate it. Mortgages are a scam and the banks shouldn't be allowed to charge interest on anything. Interest should be completely illegal.

Who else would loan to you? The bum outside Safeway?

You want zero home ownership? Too late. Too many are already built you dumb OX.

 

[JWBooth]

Japan has available 100 year mortgages. I think they expect the family to continue to pay after the death of the purchaser.

The Japanese economy hasn't done well since the 80's. Following their lead isn't the best of ideas.

 

[Hafar1014]

No matter who proposed it, a 50 year mortgage is stupid. If Biden proposed the idea, I'd still hate it. Mortgages are a scam and the banks shouldn't be allowed to charge interest on anything. Interest should be completely illegal.

Economics is not your strongpoint

 

[Orangecat]

Meh, let it be an option. No one has to take them up on it.

 

[DennisPTate]

.... that I would have expected it came from a big government leftist.

Trump proposed a 50-year mortgage. What it would mean for homebuyers

President Donald Trump recently proposed the idea of creating a new 50-year mortgage as a way to improve housing affordability.

www.usatoday.com

Dumbest, stupidest idea I've ever heard of. Let's enrich the banks even more and trap people in debt, for life, just to save a few hundred bucks a month in interest.

This shows how sick our economy really is, that it would even be proposed. People ought to be figuring out how to take a 15 year mortgage and pay it off, instead of figuring out how to lower the monthly payment, which most people would simply spend anyway.

Actually, that kind of reminds me of the Jubilee year economic system that Moses set in motion in the Book of Leviticus?

As long as the rate is low, a fifty year mortgage could cause the economy to boom.

 

[CrazyTrader55]

What we need are ways to bring down the cost of housing, not ways to enrich the banks even more.

 

[CrazyTrader55]

No matter who proposed it, a 50 year mortgage is stupid. If Biden proposed the idea, I'd still hate it. Mortgages are a scam and the banks shouldn't be allowed to charge interest on anything. Interest should be completely illegal.

"Interest should be illegal".

What are you, a Muslim? Just like 50 year mortgages are ridiculous - so is this statement.

Without interest, how would businesses be able to borrow money?

 

[knuckles]

.... that I would have expected it came from a big government leftist.

Trump proposed a 50-year mortgage. What it would mean for homebuyers

President Donald Trump recently proposed the idea of creating a new 50-year mortgage as a way to improve housing affordability.

www.usatoday.com

Dumbest, stupidest idea I've ever heard of. Let's enrich the banks even more and trap people in debt, for life, just to save a few hundred bucks a month in interest.

This shows how sick our economy really is, that it would even be proposed. People ought to be figuring out how to take a 15 year mortgage and pay it off, instead of figuring out how to lower the monthly payment, which most people would simply spend anyway.

Responsibility lies with the individual. Mommy and Daddy can't house you in the basement forever.

 

[Lisa558]

Nothing wrong with it. In a place like CA, it may help young couples get into that first home.

Nobody says you have to stay 50 years. Conditions in lives change over time. They already had 50 yr loans out there.

TDS again.

Bingo!

What a 50-year-mortgage would do is lower the payments to the point that a 30-year-old could afford a starter home, and then as his or her salary increases, refinance it a 30-year, and then again to a 15-year,

OR, to keep from being locked in, simply increase the principal payments as you want.

 

[CrazyTrader55]

Bingo!

What a 50-year-mortgage would do is lower the payments to the point that a 30-year-old could afford a starter home, and then as his or her salary increases, refinance it a 30-year, and then again to a 15-year,

OR, to keep from being locked in, simply increase the principal payments as you want.

Refinance to 30 year.... Bank charges big fees. Bank wins.

Refinance again to 15 year....bank charges big fees. Bank wins again.

Middle class homeowner loses.

 

[Lisa558]

Refinance to 30 year.... Bank charges big fees. Bank wins.

Refinance again to 15 year....bank charges big fees. Bank wins again.

Middle class homeowner loses.

Still lets a young person get into their first home, and start building equity as the price goes up, It’s similar to an ARM, where the first few years were a low rate.

 

[Lisa558]

Refinance to 30 year.... Bank charges big fees. Bank wins.

Refinance again to 15 year....bank charges big fees. Bank wins again.

Middle class homeowner loses.

P.S. So don’t refinance. Just add $200 or so to the principal each month and shave years off the mortgage.

 

[CrazyTrader55]

Still lets a young person get into their first home, and start building equity as the price goes up, It’s similar to an ARM, where the first few years were a low rate.

I hear what you are saying. But 50 year mortgages are a symptom of a huge problem we have in this country. They are going to do nothing to bring down housing prices.