Trump proposes 50-year mortgage to help affordability

[Fort Fun Indiana]

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.

Doubtful. We write 30 year mortgages for 75 year olds already. Even to bring up their age during the process would be against the law.

 

[Winston]

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

Yes, more than you realize. When you have 50 years in which to capitalize a mortgage, well there is a lot of room for some cream for the lender.

 

[Crepitus]

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

Increadibly bad idea.

 

[Crepitus]

Doubtful. We write 30 year mortgages for 75 year olds already. Even to bring up their age during the process would be against the law.

Whoever inherits it also gets the mortgage.

If no-one inherits the bank gets it back as far as I know.

 

[Fort Fun Indiana]

Lets show how stupid this is, and, in turn, why the President is an economically illiterate moron.

$250,000 mortgage at 6%

30 year mortgage payment (P&I only): $1499/month

50 year payment: $1316/month

 

[shockedcanadian]

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.

150 years would really be pushing it but people are living longer so...

 

[Thinker101]

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

Huh??? Sure wouldn't recommend, but 50 year mortgages have been available for quite a few years.

 

[Fort Fun Indiana]

Huh??? Sure wouldn't recommend, but 50 year mortgages have been available for quite a few years.

And you won't get one, because they don't qualify as a Qualifying Mortgage, by law. So banks won't buy and sell them, and investors wont accept them being written.

 

[Concerned American]

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

WTF is a 'tenet' farmer--tenant. As for company store, LOL, like Mamdani's 'GOVERNMENT stores?" Home equity comes when you pay your mortgage down--is that concept foreign to you?

 

[EvilCat Breath]

Huh??? Sure wouldn't recommend, but 50 year mortgages have been available for quite a few years.

In California where the median home is over $800,000 a 50 year mortgage is the difference between a home and a rent increase every year.

CAlifornia Median Home Price by County

CAlifornia Median Home Price by County

instamortgage.com

 

[Concerned American]

150 years would really be pushing it but people are living longer so...

As anyone who has ever had a mortgage can attest, most people's financial situation improves over time and their ability to pay their mortgages down quicker increases. Smart people refinanced and reduced the term of their mortgages to facilitate paying less interest or they just doubled up on their payments. Not so smart people refinanced, took the equity in cash and spent it on toys or vacations oblivious to the fact that they still had to pay the loan for those things that held no equity.

 

[braalian]

Isn’t this kinda proof that he’s out of touch with the real life of the average American ?

 

[Concerned American]

Isn’t this kinda proof that he’s out of touch with the real life of the average American ?

Wut?

 

[braalian]

Wut?

Well, if he thinks a 50 year mortgage is a good idea…..

 

[EvilCat Breath]

Isn’t this kinda proof that he’s out of touch with the real life of the average American ?

What!

 

[Concerned American]

Well, if he thinks a 50 year mortgage is a good idea…..

If you are a young person starting out, what is your alternative?

 

[Harry Dresden]

Isn’t this kinda proof that he’s out of touch with the real life of the average American ?

a few here seem to like it....

 

[Winston]

WTF is a 'tenet' farmer--tenant. As for company store, LOL, like Mamdani's 'GOVERNMENT stores?" Home equity comes when you pay your mortgage down--is that concept foreign to you?

Right, home equity comes when you pay your mortgage down, as long as the home maintains or increases in value. So I got to ask, just how quickly are you going to be paying down that mortgage within a 50 year term? I mean I could figure it out, using Excel or some complicated Algebra that I ain't into tackling right now, besides, my calculator with the X to the Y function is somewhere around here but I don't want to look for it.

But yeah, paying down a mortgage would be a foreign concept within a 50 year term, at least for the first ten years. I can see a use for a 50 year mortgage. Maybe a Farm Ownership Loan through the USDA, for a down payment on a farm. I mean a huge percentage of American farm land is leased, worked by the person paying the lease, not the owner. Let's make those that lease owners, and let the owners cash out. Trust me, it is a beautiful thing.

But finally, those "government stores". I mean I get it, you can certainly find failures when that happened in the past. But failure is not that uncommon in the grocery industry. It is tight, albeit not near as tight as it was fifty years ago. But there are successes as well. Not government owned, but damn employee owned. Can you be more "Socialist" than that? Publix does pretty well.

But what really comes to mind is those, I guess, mercantile stores on military bases. Government owned, government operated. Announce you are turning them private and see what happens, because it did, last week. The community was pretty pissed off.

 

[Fort Fun Indiana]

In California where the median home is over $800,000 a 50 year mortgage is the difference between a home and a rent increase every year.

CAlifornia Median Home Price by County

CAlifornia Median Home Price by County

instamortgage.com

Taxes and insurance go up every year, too.

 

[Concerned American]

So I got to ask, just how quickly are you going to be paying down that mortgage within a 50 year term?

I paid three 30-year mortgages off in 40 years--not simultaneously and each one made the next easier. While you may not make a lot of money, you will recoup every penny you spent on interest with the incentive that you might just hit a bubble and make some money. But, you be you and believe that it isn't possible instead of figuring out how to make it possible. What kind of business did you say you run?