Crime Trump, 50 year mortgage?

[deviake]

I believe we call that renting! Tee hee.

Donald Trump's 50-year mortgage proposal. What to know about long-term loans.

President Donald Trump appeared to propose mortgages with 50-year terms. Here's what to know.

www.usatoday.com

President Donald Trump on Saturday, Nov. 9, appeared to propose mortgages with 50-year terms, an idea that drew criticism from leaders in Washington, researchers and others. “Thanks to President Trump, we are indeed working on The 50 year Mortgage - a complete game changer,” Federal Housing Finance Agency Director Bill Pulte wrote on X. But other Trump allies balked at the idea. Conservative Rep. Marjorie Taylor Greene shared on X that she opposes the move, arguing that it rewards "the banks, mortgage lenders and home builders while people pay far more in interest over time and die before they ever pay off their home."
[...]

Interest rates go up on longer-term loans

Yes, extending the term of a mortgage from 30 to 50 years could drop the monthly payment, wrote Richard Green, a professor at the University of Southern California, on LinkedIn. A 50-year amortization would cost $564 per $100,000 of mortgage versus $632 for the same amount for a 30-year loan, Green calculated.
[...]
But that doesn’t account for the fact that longer loan terms naturally have higher interest rates because they’re riskier for lenders. That’s already clear, Green wrote, in the difference between 15-year mortgage rates and those for 30-year loans.

Longer loan terms build less equity

When homeowners make monthly mortgage payments, a portion of the payment goes to cover interest costs, and a portion accrues as equity – the owner’s stake in the property. The longer the term of the loan, the less equity gets accrued.
[...]
Perhaps the most important reason not to champion a 50-year mortgage is that it wouldn’t actually make housing cheaper. There’s near-universal agreement from all kinds of housing observers that the affordability crisis is one of (non)-supply and demand.


I must say, I feel pretty


Great

about this idea. Another banger! We just can't stop winning.

 

[Deaths Head]

It would cost the average home owner 2 decades of debt .

Welcome to Trump World , everything backwards since at least 1990 and going strong still he’s the luckiest president in the world where stupid people managed to grow in mass amounts over time .

 

[deviake]

It would cost the average home owner 2 decades of debt .

Welcome to Trump World , everything backwards since at least 1990 and going strong still he’s the luckiest president in the world where stupid people managed to grow in mass amounts over time .

The quintessential case of falling up if there ever was one

 

[Misfit23]

I feel sorry for all the idiots who are planning on getting a 50 year loan. The interest rates on that are gonna be garbage.

 

[gentel]

Lmao even if you got your mortgage at 20y/o (which is young af to get a mortgage), you'd only finish that at 70y/o

Start it later at 30y/o and you will have a sizable number of borrowers not living to 80 to pay it off

 

[Deaths Head]

Lmao even if you got your mortgage at 20y/o (which is young af to get a mortgage), you'd only finish that at 70y/o

Start it later at 30y/o and you will have a sizable number of borrowers not living to 80 to pay it off

Makes as much sense as his statement the United States can become self sufficient and separate itself from all the other countries when it’s not even possible to be able to manufacture everything ourselves .

 

[Deaths Head]

The quintessential case of falling up if there ever was one

Kind of like when his extreme nationalist followers believed we can be a self sufficient nation and separate ourselves from other countries and produce everything our selves as stated above this was his big push when he was all against NATO and brainwashing tactics , he even had dummies on here buying into it and saying nato is unnecessary and counterproductive .

The stupidity is real .

 

[Natural Order]

MTG becoming the highest IQ Republican….never thought that phrase could ever be typed.

Lmao even if you got your mortgage at 20y/o (which is young af to get a mortgage), you'd only finish that at 70y/o

Start it later at 30y/o and you will have a sizable number of borrowers not living to 80 to pay it off

Its the housing market equivalent of 8 year auto loans. 5 used to be the standard max, but as price has gone up so have the loan options to allow the poorest to keep pretending. I’d even guess there are 120 month auto terms out there now.

Of course lenders love this shit, at least on paper. You’ll end up paying $150k above value in the additional interest for those extra 25 years of feasible payments.

The whole system is fundamentally broken.

 

[lowlife]

Why do all of his "solutions" just fuck over the middle class and below? Oh yeah that's right, he's piece of shit.

 

[nixkid]

It doesn't tackle the real problem which is supply so I doubt it would even result in lower monthly payments. The average price of a house would just continue to increase until the payments on a 50 year mortgage are somewhere between 20-30% of the average buyers income.

Same house, same monthly payment, way higher sticker price (without interest), way more interest paid, and the average borrower would need a 50 year mortgage to afford it at all.

 

[AWilder]

build more houses?
No, that doesn't serve the 1%
how about a 50 year mortgage?
Perfect, we can make the housing "affordable" while actually making it cost WAY MORE!

 

[therealdope]

I feel sorry for all the idiots who are planning on getting a 50 year loan. The interest rates on that are gonna be garbage.

50 yr mortgages have been available in California since 2006. https://www.mortgagenewsdaily.com/news/5162006-50-year-mortgage

I believe they've had zero principle mortgages since the 90s.

Canadians with ARMS from 2021 and 2022 face the potential of a charge when the 5 yr renewal comes up. Many ARM holder have moprtgages that don't change the monthly payment but if the interest rate is higher than what it was when the term started (and monthly calculated) that difference accumulates and is due at the end of the 5 yr term.

Do I think 50 yr mortgages are dumb? Yes I do. Are there dumber mortgage instruments that have been around for many years? Yes there are.

 

[deviake]

Why do all of his "solutions" just fuck over the middle class and below? Oh yeah that's right, he's piece of shit.

The words "debt slavery" came to mind when I saw this story... for some reason.

 

[Fedor>Cain]

I feel sorry for all the idiots who are planning on getting a 50 year loan. The interest rates on that are gonna be garbage.

My butthole is still sore from signing a 30 year mortgage

Who are they gonna give 50 year mortgages too? Teenagers?

If you sign a 50 year at age 20, there's a decent chance you're dead before you even make it to the end of the loan lmfao

 

[Fox by the Sea]

grotesque.
there's people that will die without paying it off. basically a renter life.
absolutely awful

 

[rearnakedchoke]

It’s called a mortgage for a reason.

Frankie pentangeli mort .gif

 

[HockeyBjj]

Horrible idea for a number of reasons, I'm bored so here's a few off the top of my head. Using a 400k home with 6% interest to compare as those seem to be about the national averages

30 year 400k with 80k down = $1918 a month, 50 year same is $1684. Only $234 monthly savings for 20 extra years and $320k extra in interest (370k vs 690k). This is only looking at mortgage not other costs like property taxes and insurance and closing costs

• Idiots will do this, and that will result in even more demand for housing, and drive housing costs up even more
• People who would do this most likely can't come up with 20% down, so are doing like 5% down and paying for PMI
  • in the above example with 5% down on 50 years the monthly payment is actually MORE than the 30 year ($2000 a month, and then add PMI on top of that)
• The first 10 years of owning a home on 50 year plan, only $13k of your monthly payment is going to the principal. If there's the slightest market downturn you're immediately underwater on your house (for comparison the first 10 years is $50k against principal from monthly payments so a market drop you're still ahead unless it's 2008) and can't sell without finding extra cash even if you're making the monthly payments work.
• That 6% interest for a 30 year is probably 8?% interest for any bank crazy enough to offer 50 year term

I don't see how this doesn't result in a high rate foreclosures and bank seizures of homes on people who go 50 year, but maybe that's the point

It's renting with extra steps

 

[HockeyBjj]

My butthole is still sore from signing a 30 year mortgage

I've got a 30 year 2.7% mortgage and it's probably the best financial decision I'll have ever made in my life lol

 

[Cool Hand Luke]

I've got a 30 year 2.7% mortgage and it's probably the best financial decision I'll have ever made in my life lol

we started with a 30, but then refinanced to a 20 at 2.36% - in the end we expect to pay the house off in total of 18/19 years because of the refinance.

 

[The XL]

Being a slave for 50 years just to own a house. This system is a fucking joke.