Trump proposes 50-year mortgage to help affordability

[EvilCat Breath]

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.

Should owning multiple homes be prohibited? How about owning just one home with multiple bedrooms? Should one person living in a home with multiple bedrooms be required to rent out the excess rooms?

 

[Winco]

Should owning multiple homes be prohibited? How about owning just one home with multiple bedrooms? Should one person living in a home with multiple bedrooms be required to rent out the excess rooms?

Listen Carefully.

You or I, most likely being a middle income person, you or I want to boost our income a bit by having a rental home (or 2) ........ FINE.

A Billionaire or even a Multi-Millionaire, abusing the Housing Market, is just that ABUSE.
And It happens.

Do I have a problem with someone with an income of 5+ Million a year, getting involved in the RE Market and buying affordable homes and then renting them out at high prices, just to add to their already millions, yes, I have a problem with this, and the tax codes should TAX the **** out of them, instead of giving them tax breaks.

How can any reasonable person argue against my stance.
The Rich are the ones driving the low-middle income earners OUT of the housing market.

My Proposal, TAX the SHIT, 90%+, to discourage the RICH from manipulating the market, and making home unaffordable to the lower earners.

Give me an argument against this?

 

[EvilCat Breath]

Listen Carefully.

You or I, most likely being a middle income person, you or I want to boost our income a bit by having a rental home (or 2) ........ FINE.

A Billionaire or even a Multi-Millionaire, abusing the Housing Market, is just that ABUSE.
And It happens.

Do I have a problem with someone with an income of 5+ Million a year, getting involved in the RE Market and buying affordable homes and then renting them out at high prices, just to add to their already millions, yes, I have a problem with this, and the tax codes should TAX the **** out of them, instead of giving them tax breaks.

How can any reasonable person argue against my stance.
The Rich are the ones driving the low-middle income earners OUT of the housing market.

My Proposal, TAX the SHIT, 90%+, to discourage the RICH from manipulating the market, and making home unaffordable to the lower earners.

Give me an argument against this?

This is a capitalist free country. Someone can make as much money as possible without confiscatory taxes. It may not be nice, or fair it is our system.

 

[Stann]

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

It's not a solution most could benefit from.