Trump proposes 50-year mortgage to help affordability

[justoffal]

Would it reduce the monthly payment enough to make currently unaffordable homes affordable ? Hmmm I don't know.

It would just create a demand and that would move prices up to the next tier defeating the whole purpose.

 

[struth]

Or do like the fat rapist and just default. Then sue the lender.

Geez I thought we left Whitewater in the 90s

Why do you Dems automatically think of these things?

 

[Fort Fun Indiana]

Yep. And they make fry cook wages, other than their commissions. So they have to sell to eat. The moral hazard in such a situation is off the charts. But the banking and auto industries have managed to strip away all laws and any possibility of any laws that protect the consumer.

If you buy a used car, start it up to drive away from the dealership, and the transmission falls out... the dealer has the legal right (and will definitely exercise it) to demand you get your piece of shit car off their lot before they have it towed away.

The best GAP policies offered generally cover up to 125% LTV, using the value of the vehicle at date of loss. Most of these loans START at or over 125% LTV, due to:

• low value of vehicle and it already being overpriced to book value due to our desperation market
• sales tax
• dealer fees
• protection products, like GAP and aftermarket warranties

So, even WITH GAP, the loans often default, when there is any serious problem with the vehicle. And GAP only helps when the vehicle is a total loss. Not when a $9000 car needs $5000 in repairs just to get back on the road.

Everything about curing this problem SHOULD be right in the wheelhouse of a supposed "Populist" President, and his party and administration. These are generally all WORKING people affected by this. Lower middle class people from the income brackets that Trump WON, in 2024.

But that populism is a ruse for idiots.

This is another irony of a system rigged against anyone who isn't rich or profiting from a situation.

Insurers will typically deem a vehicle a "total loss" at 30% damage, when considering an older vehicle. $3000 in damage to your $10,000 vehicle? Totaled. And they do this because their actuarial tables show it is more profitable to write off the claim and essentially bribe the consumer into signing off without any pursuit of medical or other loss claims arising from the accident. Meanwhile, the consumer is often left with a loan balance and a monthly payment for a car that no longer exists.

But your $10,000 vehicle needs $4000 in repairs? **** you, suck it up.

Hmm, I wonder why mechanic labor costs have skyrocketed? No I don't.

 

[TheGreatSatan]

Bad idea.

Why?

Most people move every 5 years.

50 year mortgages will help people stay in their homes. Renting is much worse.

 

[The Irish Ram]

Because he is too stupid to come up with a solution, Donald Trump suggests you pay hundreds of thousands of dollars of extra interest with a 50-year mortgage

In that case, shouldn't 15-year mortgages be the norm? < It's not, because the payment would be too high for most home buyers. All this is, is stretching the mortgage out even farther to make the monthly payments more affordable. It would be an option.

 

[davebb]

If you can't pay off something in 30 years, then it's probably not for you.

Related. Car loans. For people who can't do math. How many people criticizing the 50 year mortgage don't even blink at taking out a car loan?

 

[theHawk]

This is an incredibly dumb idea. Who on Earth would want a 50-year mortgage? You're indebting yourself your entire life and will pay far more interest over the course of the loan than your home will ever be worth. It's a lifetime of indebtedness. Japan attempted a similar approach in the 1980s and it didn't work.

Trump proposes 50-year mortgage to help affordability

Trump supports 50-year mortgages to lower monthly payments, but longer terms reduce equity and aren't supported under current mortgage rules.

www.housingwire.com

Not a fan of this. Affordable houses with shorter mortgages are what we need.

Rare L from the Donald.

 

[theHawk]

The interest rates should be low in order to not be abusive.

If that's the case, then go for it.

Homes are just too expensive, and prices never go down, not really.

We're living longer now anyway, and if this becomes a thing it could change the culture to encourage young people to buy a home right out of high school or college at the latest.

I like this kind of out-of-the-box thinking.

We just need to boot out all the illegals and even “legal” foreigners that are driving prices up.

How are lower class Americans like blacks suppose to “move up the ladder” if foreigners are using their welfare to buy places and drive up the cost of housing?

 

[theHawk]

 

[MarcATL]

We just need to boot out all the illegals and even “legal” foreigners that are driving prices up.

How are lower class Americans like blacks suppose to “move up the ladder” if foreigners are using their welfare to buy places and drive up the cost of housing?f

Sure, Jan.

 

[Hellokitty]

This is an incredibly dumb idea. Who on Earth would want a 50-year mortgage? You're indebting yourself your entire life and will pay far more interest over the course of the loan than your home will ever be worth. It's a lifetime of indebtedness. Japan attempted a similar approach in the 1980s and it didn't work.

Trump proposes 50-year mortgage to help affordability

Trump supports 50-year mortgages to lower monthly payments, but longer terms reduce equity and aren't supported under current mortgage rules.

www.housingwire.com

I have no issue with 50 year mortgage options. I wouldn't do one, but I have anxiety over debt. My advice would be to get a house you can afford with a 20-10 year payoff.
That said if I had to rent or get 50 year mortgage, I'd go with 50 year mortgage.

 

[Stann]

This is an incredibly dumb idea. Who on Earth would want a 50-year mortgage? You're indebting yourself your entire life and will pay far more interest over the course of the loan than your home will ever be worth. It's a lifetime of indebtedness. Japan attempted a similar approach in the 1980s and it didn't work.

Trump proposes 50-year mortgage to help affordability

Trump supports 50-year mortgages to lower monthly payments, but longer terms reduce equity and aren't supported under current mortgage rules.

www.housingwire.com

People will never get it paid off , they'll pay til.theu die . So another words very expensive rent.

 

[WorldWatcher]

People will never get it paid off , they'll pay til.theu die . So another words very expensive rent.

Not necessarily true.

I'm * * * NOT * * * saying that taking on a 50 year mortgage is good.

Most 30-year mortgages do not go the full 30-year term. Most either refinance or sell the home before the full term.

But I will present some other considerations.

#1 What it does do (50-year fixed rate) is lock in a persons mortage cost. With a fixed rate mortgage your P&I does not increase over the life of the loan. So in the long term more interest will be paid, but in the short term the cost of the loan in locked. That can be a huge advantage to some especially if the mortgage P&I is less then the cost of renting equivilant space. As each year passes, rent increases, but the mortgage P&I remains flat. With a mortgage of $2,000 (P*I) today, it's still $2,000 in ten years, and $2,000 in 25 years. For most people income increases as they get older and gain more skills and experience. That means the mortgage P&I becomes a SMALLER percentage of overall income.

#2 The borrower doesn't have to keep the 50-years mortgage or pay it back in 50-years. As income increases (see above) if the borrower has ensured their is no early payment penality (and I've not seen one from a reputable mortgage provider), then they can increase the amount of the monthly payments decreasing the "50-year" loan to 30, 25, 20? What the lower initial mortgage for P&I does is provide flexibility.

#3 Then there is the hold & sell or hold & refinance option. Once the fixed mortgage P&I is established, then over time the borrower can refinance to something with a slightly lower rate and shorter time. That would probably result in an increase in the monthly P&I, but if the borrowers income has increased they may be able to handle it.

WW

 

[struth]

People will never get it paid off , they'll pay til.theu die . So another words very expensive rent.

1) you can pay more then min payment
2) you can sell it before the loan is paid off

Do you idiots think people don’t move til they pay their mortgage off? There is a reason you guys are all losers

 

[EvilCat Breath]

Not a fan of this. Affordable houses with shorter mortgages are what we need.

Rare L from the Donald.

Ohhhh. If you want more affordable homes you must reduce demand. Deport all those here illegally, revoke 80% of visas. Limit immigration to 10,000 a year. Now you have a housing surplus that would bring prices down. All lengths of mortgages should be an option.

 

[Winco]

Now you have a housing surplus that would bring prices down.

And IF that happened, you would ***** about Home Owners losing value in their homes.

Can't win with you.
It's always a negative with you.

 

[drudge X]

And IF that happened, you would ***** about Home Owners losing value in their homes.

Can't win with you.
It's always a negative with you.

Which would you prefer? Shortages driving prices up that most Americans can no longer afford or lowering home prices so more people can afford?

 

[EvilCat Breath]

And IF that happened, you would ***** about Home Owners losing value in their homes.

Can't win with you.
It's always a negative with you.

Housing Value was not the issue. Home ownershup was . Like any commodity, homes are subject to the laws of supply and demand.

 

[Winco]

Which would you prefer? Shortages driving prices up that most Americans can no longer afford or lowering home prices so more people can afford?

You asked, I'll answer.
Will you answer back?

House prices vary greatly by State.
Why, Location and Desire.

It doesn't COST 5-20 times more to build a home in Jackson, Breckinridge, Nantucket or Steamboat Springs, than it does to build the exact same home in Tulsa, Pittsburg, Scranton or Toledo.

Sure, the actual vacant property is obviously valued higher, but NOT that much higher.
The PRICE of materials is relatively consistent across the nation, but WHY does it cost 4 times more to replace your roof in Jackson than it does in Tulsa.

You get my point......right?

Bottom Line, housing should be cheaper, except for those billionaires, they can pay whatever the **** they want ........... but keep your ******* DIRTY hands off the affordable market, so you Billionaires can have even more control of a Market you Billionaires would NEVER live in.

Billionaires, sure.......buy your Mansions, but STAY the **** out of the other Affordable Housing Market.

Did I make my stance Clear?



Thoughts?

 

[Winco]

Ohhhh. If you want more affordable homes you must reduce demand. Deport all those here illegally, revoke 80% of visas. Limit immigration to 10,000 a year. Now you have a housing surplus that would bring prices down. All lengths of mortgages should be an option.

Housing Value was not the issue. Home ownershup was . Like any commodity, homes are subject to the laws of supply and demand.

1st, read post # 219.

It is the Rich Causing the Housing Problem.
Not Illegals. Dear Lord.

How many RICH or Ultra Rich people do you know (That aren't in the RE Business as their primary income) that own MULTIPLE homes, that they themselves would NEVER live in, to rent out at Higher prices, just to make even MORE Millions.

It is disgusting.