Trump proposes 50-year mortgage to help affordability
- Thread starter Dont Taz Me Bro
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Concerned American
Diamond Member
Shades of the housing bubble. I wondered then where the money was coming from when minimum wage earners in CA were given $500K loans. Turned out they shouldn't have and home values decreased by 1/2 seemingly overnight. It is coming again and only those who are debt free or those locked into good mortgages that they can afford for the long haul will weather it.
The Irish Ram
LITTLE GIRL / Ram Tough
I was very much surprised that they did it. Chase has the mortgage. And the mortgage payment had already jumped $300.
And I said, "What's going to prevent you from raising the amount whenever you want?" He said, "Nothing, in fact it is due for an increase of another $300. in Sept." I said, "How many thousand will she be paying in 5 years? How can I get you to take off the escrow?" She could send you the receipts for the taxes and ins." He said, "Let me see what I can do",
Not believing for a minute that Chase bank would do that, I got a letter. They did do it and her payment amount is considerably lower now.
Thank you Lord. Her cup runneth over...
Concerned American
Diamond Member
IIRC, mortgages that are obtained without the required 20% down payment have Private Mortgage Insurance applied to the loan for the life of the loan. This is added to the principle. Escrow accounts are not required but they are maintained by the mortgage company for the borrower's convenience. Escrow accounts may be required for guaranteed loans like FHA, VA etc.I was very much surprised that they did it. Chase has the mortgage. And the mortgage payment had already jumped $300.
And I said, "What's going to prevent you from raising the amount whenever you want?" He said, "Nothing, in fact it is due for an increase of another $300. in Sept." I said, "How many thousand will she be paying in 5 years? How can I get you to take off the escrow?" She could send you the receipts for the taxes and ins." He said, "Let me see what I can do",
Not believing for a minute that Chase bank would do that, I got a letter. They did do it and her payment amount is considerably lower now.
Maintaining an escrow account for taxes and insurance is not legally required for all real estate buyers; however, some lenders may require it as a condition of the loan, especially for certain types of loans like FHA loans. It can also be beneficial as it helps manage these expenses by spreading them out over monthly payments.
Wikipedia
The Irish Ram
LITTLE GIRL / Ram Tough
She put down quite a bit more than the 20%, has excellent credit and payments automatically taken out of her bank account, so it wasn't much of a risk to remove the escrow.
Her ins. and taxes didn't go up, yet they raised her payment by $600.00. That needed to stop. I also asked him if her taxes were to decrease, would her payment decrease as well. The answer was, no. He did her a solid by removing the escrow.
Her ins. and taxes didn't go up, yet they raised her payment by $600.00. That needed to stop. I also asked him if her taxes were to decrease, would her payment decrease as well. The answer was, no. He did her a solid by removing the escrow.
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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
Agree. It's not a solution. It's not even a patch. Bad idea.
Zincwarrior
Diamond Member
No this means you are literally in debt your entire life. Like the poor in India.
Zincwarrior
Diamond Member
What has happened to my country!
Why can’t you sell the house? Or pay more?
Concerned American
Diamond Member
My place has more than doubled in value since I purchased 17 years ago. The mortgage is paid off. Does that sound like I'm in debt for life? Buying with a credit card at 26% APR and paying minimum payments is in debt for life. Using credit wisely is what keeps you out of debt. It doesn't matter how long a mortgage is, if you pay it off, you aren't in debt.
candycorn
Diamond Member
Reminds me of a bad movie I saw once.
You could sell body organs for cash or debt forgiveness. The obvious argument was whether we want people making clearly bad decisions that affect them for a long time to solve short-term problems.
Just admit it; it’s a stupid idea.
Zincwarrior
Diamond Member
You still owe money dumbshit.
Concerned American
Diamond Member
These folks are the reasons we have defaults, foreclosures and people underwater on their home loans. They don't use their heads or simple finances are beyond their comprehension.
EvilCat Breath
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- Sep 23, 2016
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50 year mortgage aren't mandatory. It's an option to help people get into a home where they would otherwise be priced out. It's not like land is going down in price.
Pay a few years, the home increases in value. Refinance to a shorter loan.
Pay a few years, the home increases in value. Refinance to a shorter loan.
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elektra
Diamond Member
The price of a house went up more than a 100% when the government went from 15 years to 30 years.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.
Now every home in America will cost a million dollars.
Fort Fun Indiana
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- Mar 10, 2017
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As if this is "Trump's idea". That idiot knows nothing about anything. This idea has been around for a long time. And there are good reasons we don't do it.
Some economically illiterate bootlicker tried to make himself seem important and fed this idiotic idea to the economically illiterate president.
Some economically illiterate bootlicker tried to make himself seem important and fed this idiotic idea to the economically illiterate president.
Trump ain't the idiot. The idiots are the ones who fall this this stuff. Remember the absolutely no money down to buy a $600K house before the crash? There were also no shortages of those acceptable really low ARM but only to see a surprise statement when the ARM expired. Lots of folks sure got reamed by the bank and messed up their credit too. So...set aside your TDS.
Fort Fun Indiana
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Trump is an economically illiterate moron who honestly thinks he just vomited a great idea.
And if you don't see that, then you are in a cult.
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