Trump proposes 50-year mortgage to help affordability

[Fort Fun Indiana]

Absolutely correct. I had the escrow removed from her mortgage, so the price now will never increase. It is a trade off though. She is now responsible for her taxes and insurance. That amount will fluctuate, but her mortgage payment will stay the same for the remainder of the mortgage.

I.E, just like rent.

 

[Concerned American]

Just for clarity...

It's only the mortgage P & I that is set, mortgage payments are still subject to increases for taxes and insurance (Escrow).

WW

Just for clarity, taxes and insurance rates increase when renting as well. Irrelevant.

 

[WorldWatcher]

Absolutely correct. I had the escrow removed from her mortgage, so the price now will never increase. It is a trade off though. She is now responsible for her taxes and insurance. That amount will fluctuate, but her mortgage payment will stay the same for the remainder of the mortgage.

How did you get the escrow removed?

Our lender(s) - notice plural - have always had escrow as as required part of the loan. The lender did that to protect their investment. (For others, escrow is different than PMI.)

WW

 

[WorldWatcher]

Just for clarity, taxes and insurance rates increase when renting as well. Irrelevant.

True, never said they didn't.

But it is important for younger people to understand that a mortgage does not remain unchanged for the life of the loan. Only the mortgage P&I remains fixed.

WW

 

[Concerned American]

True, never said they didn't.

But it is important for younger people to understand that a mortgage does not remain unchanged for the life of the loan. Only the mortgage P&I remains fixed.

WW

Grasping.

 

[WorldWatcher]

Grasping.

No grasping. Go back and look at my posts on the subject, I've repeatedly pointed out that the fixed portion of a mortgage was P&I.

WW

 

[Concerned American]

No grasping. Go back and look at my posts on the subject, I've repeatedly pointed out that the fixed portion of a mortgage was P&I.

WW

And taxes and insurance ARE NOT part of a mortgage. Did someone need to point that out to you?

 

[WorldWatcher]

And taxes and insurance ARE NOT part of a mortgage. Did someone need to point that out to you?

To me? No.

To many people though the term "mortgage" means how much are they stroking a check for to the lender. That is the mortgage payment which - as you know - includes PMI, Property Taxes, and any required insurance.

And yes, when required by the loan documents escrow is part of the mortgage payment.

Why such a nit-pic?

WW

 

[Fort Fun Indiana]

How did you get the escrow removed?

Out lender(s) - notice plural - have always had escrow as as required part of the loan. The lender did that to protect their investment. (For others, escrow is different than PMI.)

WW

That's a lender's prerogative.

 

[Fort Fun Indiana]

To me? No.

To many people though the term "mortgage" means how much are they stroking a check for to the lender. That is the mortgage payment which - as you know - includes PMI, Property Taxes, and any required insurance.

And yes, when required by the loan documents escrow is part of the mortgage payment.

Why such a nit-pic?

WW

*and HOA dues

 

[JustAGuy1]

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

Very bad idea

 

[WorldWatcher]

*and HOA dues

Interesting, haven't' had HOA as being part of escrow.

But I can see communities where it could be required depending on the covenant for the community.

WW

 

[struth]

*and HOA dues

Where did you get the idea that every home is in a HOA?

 

[Fort Fun Indiana]

Interesting, haven't' had HOA as being part of escrow.

But you can and probably should.

Escrow requirement is a lender's prerogative. You can escrow just taxes and not insurance, if you like, with most lenders, for example.

 

[Concerned American]

To me? No.

To many people though the term "mortgage" means how much are they stroking a check for to the lender. That is the mortgage payment which - as you know - includes PMI, Property Taxes, and any required insurance.

And yes, when required by the loan documents escrow is part of the mortgage payment.

Why such a nit-pic?

WW

Let me remind you who falsely nit picked the fact that the MORTGAGE payment increases due to taxes and insurance. The mortgage--you know that loan paper that you signed and promised to pay back, never increases, unless of course you saddled yourself with an ARM.

mortgage​

/ˈmɔː.ɡɪdʒ/

noun​

1. A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property, such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.

 

[citygator]

I was working in the yard yesterday and totally missed this stupid idea. Hilarious. Why not make it a 100 year loan? If 50 is better than 30 then 100 is better than 50!

 

[Fort Fun Indiana]

"I don't want to hear about affordability."

-President Trump

 

[Captain Creeper]

Yeah, that’s not really a great idea. Yikes…

 

[WorldWatcher]

Let me remind you who falsely nit picked the fact that the MORTGAGE payment increases due to taxes and insurance. The mortgage--you know that loan paper that you signed and promised to pay back, never increases, unless of course you saddled yourself with an ARM.

mortgage​

/ˈmɔː.ɡɪdʒ/

noun​

1. A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property, such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.

Everyone and their brother refers to the check (or electronic withdrawal) to the lender as their "mortgage payment" which includes P&I and Escrow.

I have, and you probably haven't either in general conversation hear people say "Oh, I made my mortgage payment and escrow".

So I'll remind you again, that I was pointing out that yes "mortgage payments" as the term in commonly used can change over time because of escrow and that it is only the P&I that remains flat.

So with that you have my permission for a final rebuttal post so that you can feel superior. But I think we've exhausted the exchange for any worthwhile exchange.

WW

 

[Concerned American]

Everyone and their brother refers to the check (or electronic withdrawal) to the lender as their "mortgage payment" which includes P&I and Escrow.

I have, and you probably haven't either in general conversation hear people say "Oh, I made my mortgage payment and escrow".

So I'll remind you again, that I was pointing out that yes "mortgage payments" as the term in commonly used can change over time because of escrow and that it is only the P&I that remains flat.

So with that you have my permission for a final rebuttal post so that you can feel superior. But I think we've exhausted the exchange for any worthwhile exchange.

WW

Sure and the world is flat. Your inept attempt to justify your own strawman speaks for itself. The fact remains that fixed rate mortgages never increase.