Trump proposes 50-year mortgage to help affordability

[Concerned American]

When I think of a 50-year mortgage the sound of Tennessee Ernie Ford singing Sixteen Tons crosses my mind.

I thought of the same song when I heard about Mamdani's government stores.

 

[drudge X]

If I am looking to buy, I probably would take the offer. Why not get in first and refinance later instead of waiting for rates to come down. You would need to compete with lots of buyers, a bidding war, for the property. If you need 30 years to pay off the loan, you are financially illiterate and deserved to be taken for a ride by the bank.

https://www.yahoo.com/finance/news/the-math-behind-trumps-50-year-mortgage-gambit-lower-payments-now-but-almost-double-the-long-term-costs-204039206.html

Take a buyer of a $415,000 home, which is around the median price in the US. If they put 20% down and received today’s average 30-year mortgage rate of 6.22% over 30 years, they’d pay $2,038 a month in interest and principal. Over the course of three decades, that works out to about $734,000, with $402,000 of that going toward interest.

Over 50 years at the same interest rate, their monthly payment would fall to $1,802 a month, but their total payments would rise to $1.08 million, with $749,000 going toward interest.

 

[Admiral Rockwell Tory]

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.

That makes absolutely zero sense.

 

[TemplarKormac]

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

I love how we're all mortgage brokers now. Hoo-ee I tell you hwut!

Could go either way really. They're reaching deep into the bag to help with home affordability.

 

[Deplorable Yankee]

50 year mortgage is retarded

 

[FoghornLeghorn]

This is an incredibly dumb idea. Who on Earth would want a 50-year mortgage?

Is Trump proposing to force anybody to take such a mortgage? It's just a potential option to lower the monthly mortgage cost. Are you opposed to giving consumers more options?

 

[dudmuck]

Is Trump proposing to force anybody to take such a mortgage? It's just a potential option to lower the monthly mortgage cost. Are you opposed to giving consumers more options?

 

[Andrew_Jackson_FTW]

 

[MarcATL]

I'm * * * NOT * * * saying that taking on a 50 year mortgage is good.

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

Basically.

Not to mention the fact that for those who are renters, which is the equivalent of taking money out of your pocket and burning it, the ability to become an owner is a better option.

There's pros and cons to everything.

 

[Dekster]

If you need a 50 year loan to be able to afford the mortgage, whatcha gonna do when the roof springs a leak or the A/C gives up the ghost? Those things aren't cheap. Buy another house and then let the one you have go into foreclosure maybe...

 

[Independent thinker]

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

Actually, it's not a horrible idea. I would bet that most people who get a 30 year mortgage don't own that house for 30 years and pay it off in 30 years. The 50 year mortgage idea allows lower payments so more people can afford homes and those homes appreciate in value, which builds wealth. It would be better than renting for 50 years.

 

[Fort Fun Indiana]

I love how we're all mortgage brokers now. Hoo-ee I tell you hwut!

Hi, I'm a mortgage broker.

50 year mortgages are idiotic. They are not deemed Qualifying Mortgages, because they are predatory and risky for all parties. Investors don't want to invest in them. Homeowners will essentially be paying rent for 10+ years while taking on all the risks associated with home ownership. Meanwhile, if something DOES go wrong, they won't have the equity to tap to maintain the home. So there is increased risk to the state and value of the property, in addition to the risks to the loan.

There, now you can talk about the topic, instead of the posters.

This is an idiotic idea proposed by a halfwit, economically illiterate president who got convinced by a halfwit, unqualified and incompetent underling that people would love the idea and therefore love him and therefore give him praise and applause.

So now we get to embarrass ourselves by publicly relitigating something we figured out decades ago. This is right on brand, for the halfwit rapist charity thief president.

 

[struth]

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.

Yep nothing new, actually some more progressive countries have 100 year mortgages

It’s really a short term fix, not a solution

The solution is to dedembot our country and get people back to learning to work and save instead of asking for handouts and thinking life is handed to you. There was a big push and drive back to that, even on college campuses you all murdered Kirk because he was changing minds

 

[Fort Fun Indiana]

My last post also ties into the incompetent toadie Bill Pulte, who managed to convince the halfwit President that this idea would bring him praise and applause.

You see, founders of private equity firms often don't care how risky investments are, as the firm and investors can go bankrupt, while their own bank accounts remain flush.

And now you understand where a lot of people in the Trump orbit are coming from. Many are hoping to use the full force of the US Government to prop up their crypto and real estate scams, for example.

The fat orange conman is the one being conned, here. To the detriment of the country.

 

[g5000]

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

House prices are out of reach for more and more Americans.

Because he is too stupid to come up with a solution, Donald Trump suggests you pay hundreds of thousands of dollars of extra interest with a 50-year mortgage.

This is a fat **** who has never missed a meal in his life and who who has been pampered from birth.

This fat **** also bragged that house prices were at a record high in his first term. He actually bragged about it.

Trump is finally managing to piss off even his own base.

.

 

[Fort Fun Indiana]

Yep nothing new, actually some more progressive countries have 100 year mortgages

Like Japan, whose financial crisis was in part caused by them. That's why they are no longer offered, in general.

Like Finland, where democratic socialism creates such stability that they are less of a problem and are still extremely rare and where borrowers are protected by strong consumer laws. If anyone even proposed the Nordic Model in this country, you would probably explode into a pink mist of rage.

You would oppose any and every idea that creates an environment wherein such an instrument would not sink the economy and create a new subclass.

You don't know what you are talking about and are merely struggling to support yet another economically illiterate idea that dribbled out of the rapist charity thief's idiot mouth.

 

[g5000]

The solution is to dedembot our country and get people back to learning to work and save instead of asking for handouts and thinking life is handed to you.

This is PRECISELY Trump's mindset. Life was handed to the fat ****. He has no clue what it is like to struggle.

 

[struth]

Like Japan, whose financial crisis was in part caused by them. That's why they are no longer offered.

Like Finland, where democratic socialism creates such stability that they are less of a problem and are still extremely rare and where borrowers are protected by strong consumer laws. If anyone even proposed the Nordic Model in this country, you would probably explode into a pink mist of rage.

You would oppose any and every idea that creates an environment wherein such an instrument would not sink the economy.

You don't know what you are talking about and are merely struggling to support yet another economically illiterate idea that dribbled out of the rapist charity thief's idiot mouth.

Nobody is moving to Finland. That’s why their housing market is somewhat stable. But nobody is living there cause the country is non affordable

With that said, Finland saw an increase in homelessness, causing the taxpayers to have to build projects for the and provide homes

 

[Fort Fun Indiana]

House prices are out of reach for more and more Americans.

Because he is too stupid to come up with a solution, Donald Trump suggests you pay hundreds of thousands of dollars of extra interest with a 50-year mortgage.

This is a fat **** who has never missed a meal in his life and who who has been pampered from birth.

This fat **** also bragged that house prices were at a record high in his first term. He actually bragged about it.

Trump is finally managing to piss off even his own base.

.

The idea of having to pay back loans is not something that exists in the rotten lump between Trump's ears.

 

[struth]

This is PRECISELY Trump's mindset. Life was handed to the fat ****. He has no clue what it is like to struggle.

Oh he’s failed big time and struggled…lost businesses, had to declare bankruptcy

But that’s the difference between losers like you and the rest of us, we figure out how to move forward, you whine for snap benefits