Trump proposes 50-year mortgage to help affordability

[excalibur]

Ranks right up there with his argument for negative interest rates.

Negative interest rates: Lessons learned...so far | Brookings

Today, the Hutchins Center on Fiscal and Monetary Policy at Brookings is examining the recent experience with negative interest rates, particularly in Europe, and their possible use in the U.S. Participants include prominent economists from European central banks and Wall Street, as well as...

www.brookings.edu

 

[shockedcanadian]

Then don't get a 50 year mortgage. Problem solved.

Indeed. I don't know why more options is worse than having less options.

People can choose. Yes, the lender makes far more long term but people have to choose what works best for them.

 

[Dont Taz Me Bro]

What are new car loans now, 8 years? Are they going a full decade yet? They are going to have to soon.

Earlier this year I received an offer to refinance my auto loan at a lower rate. I’d only had the car less than a year and interest rates came down a bit so I figured I’d bite and see what they were offering.

Their solution was a 7 year loan. I laughed at the guy and hung up the phone.

 

[1srelluc]

What are new car loans now, 8 years? Are they going a full decade yet? They are going to have to soon.

There are 10-year auto loans available on high-end models.

 

[1srelluc]

LOL....Of course they lumped in with other shit mortgage loans and get AAA rated.

 

[C_Clayton_Jones]

Who on Earth would want a 50-year mortgage?

Banks and other lending institutions.

It’s basically the tenet farmer/company store paradigm: forever in debt, never owning anything, never having home equity, keeping people poor.

 

[Dekster]

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

The accounts receivable manager at the nursing home.

 

[LeftofLeft]

It’s not a good idea. What would be worse is if we go back to relaxing loan qualification standards just to achieve some social equity objective….. that caused the financial crisis in 2008. You had people biting off more than they could handle in loans, “interest only loans”, and government-backed loan obligations. This was fertile ground for not only people getting loans they could not handle, but financial institutions handing the loans out freely knowing the government had their back.

 

[ThisIsMe]

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

Probably the same people who will finance a car for 10 years

 

[ThisIsMe]

It seems like this would be like paying rent and having a 50 year lease. Maybe the terms of the mortgage would give some equity after 20 or thirty years.
I don't see it working for anyone except lenders.

"You'll own nothing and be happy"

 

[ThisIsMe]

Ranks right up there with his argument for negative interest rates.

Whats wrong with that? I like the idea of the bank paying me to borrow their money! Heck yeah!

 

[pknopp]

Whats wrong with that? I like the idea of the bank paying me to borrow their money! Heck yeah!

Yeah, that's wasnt the argument.

 

[ThisIsMe]

Yeah, that's wasnt the argument.

Negative interest rates, the bank pays me, right?

 

[meaner gene]

WHy is it a bad idea? It provide mortgage certainly. If you dont like terms you can sell you move to another company who will probably offer to pay any fee for breaking the mortgage.

I think this is a good idea with little risk to buyers.

This is like the zero-down and subprime schemes from before the great recession.

 

[Fort Fun Indiana]

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

Funny thing, we used to say the same thing about 30 year mortgages.

Hell, let's just go 100 and a descendant picked at random from the 4th generation to work as slave labor.

 

[frigidweirdo]

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

Because Trump is always looking for a scam to get people to hand their money to rich people?

 

[meaner gene]

Then don't get a 50 year mortgage. Problem solved.

I didn't get a sub-prime loan in the early 2000's.
But all those who did were the cause of the great recession that we all suffered during.

 

[meaner gene]

Funny thing, we used to say the same thing about 30 year mortgages.

Hell, let's just go 100 and a descendant picked at random from the 4th generation to work as slave labor.

I have a feeling that to qualify for a 50 year mortgage, you would have to include life insurance, the way mortgages require homeowner insurance, or flood insurance etc.

Lender requirement:

Your lender will require you to have homeowners insurance for the life of the loan.

In some high-risk areas, lenders may also require additional coverage like flood or earthquake insurance.

 

[toobfreak]

Who on Earth would want a 50-year mortgage?

I suppose it might work if the interest was low enough. But a lot of people might die before paying it off, too.

You're indebting yourself your entire life

Kinda like going to college to get an education.

It's a lifetime of indebtedness.

Isn't that already the problem?

 

[Marener]

Can’t you see? They have no ideas.