Trump to propose 50-year mortgages - bringing affordability to home buyers

Auth left moment.

I hope they put a sewage treatment plant in your backyard via imminent domain and you sleep well at night knowing you helped out your fellow man.

 

I don't think you do it cheaper than a 30.

This is one of the problems you face with population increases of that magnitude. In 1985 there were ~225 million people in the country, today there are ~340 million.

 

I don't know if they are trying to figure that out.

I don't think there is any way you can make a 50 year note equitable to a 30 year even if you had a much lower interest rate. Interest compounding and all.

I belive the biggest obstacle to home ownership is the initial cost to get into the first home.

I don't know the Real Estate market in TX. But a home note is generally less expensive up here than a rental of comparable Sq. footage

 

Section 404 of the clean water act prohibits that being built near your house? Why are we comparing sewage treatment plan to blocking affordable housing cuz you might be afraid of your neighbor? Cmon man youre a smart guy but youre being disingenuous here.

Affordable housing is the #1 concern for young Americans and why so many turned MAGATs

 

You seem to have no problem bossing people around in the name of "the general population", so, what's an ordinance to stop you, right?

It sounds like you have a lot to learn about the housing shortage and affordability crisis.

 

nobody is trying to figure out anything. Trump just says things to get people riled up.

the government doesnt dictate. They can regulate through congress.

there is no real advantage to a 50 year mortgage. Yes, there are fringe cases.

Lending institutions have no interest

 

I don’t know exactly what he is arguing but the nimby thing here in nyc has more to do with not ghettoizing marginalized folks by building subsidized housing strictly in poor neighborhoods. There is such a unit up the block from me and people tripped at the proposal back in the day and say nothing now. It has not been an issue at all, gentrification is still chugging along…

 

As it should be. The prospective lende needs to have some skin in the game and show that they are credit worthy.

I read an interesting statistic recently - 40% of home owners have ZERO mortgage. The highest in history.

I know this has something to do with the low rates we saw in early 2021 where the 30 year hit a record low of 2.65%.

They aren't selling and upgrading, they are just staying put when they would normally upgrade/move rural/ sunshine state.

So, part of the problem is a lack of supply, compound that with ~15million people who don't belong here taking up housing, further decreasing supply, you get what you see.

We really didn't have those hurdles when we were starting out.

 

My issue is mostly with CA NIMBYs who use NEPA to drag out the process on everything and white rich liberals in cities like SF/Berkeley who block any housing cuz they want to keep the status quo cuz theyre grandfathered in on paying minimal property tax.

The issue in Nyc is more so access to capital and how small number of monopolies control 80% of construction in NYC. Its a pay for play system

This is the same cultist who claimed mass deportations would bring record low unemployment and a booming economy and instead we have negative job growth and mass layoffs.

Low iq individuals

 

here in central FL, there is a glut of homes for sale. Rentals are about 25% lower than a mortgage. It does not make sense to buy right now for the average person.

Most people do not qualify. Lending standards are too tight. And the desire to own a home is pretty low.

im not convinced getting down to 3% will fix it either.

property taxes might need to be much lower.

also in some areas, insurance standards might need overhauling too. Subsidizing high risk areas need to be tempered.

 

It comes off as a horrible idea initially, but works as a starter home solution. Or someone just looking to save my having the lowest possible monthly payment.

Nobody needs their forever home right out of college or in their 20s.

When you take out a 50 yr loan with the intent of treating it as a rent payment instead of paying it off, these monthly payments would be cheaper than renting from a landlord who's likely on a 15/30 yr loan if not owned outright, so your premium is much higher (and you're paying their prop tax as well).

If you can save $500 a month in payments (albeit you'll be responsible for repairs), that's $6,000 over the course of a year and $60,000 over the course of 10 years.

If you put away $500 each month at a 5% annual interest rate, that's $75000 after 10 years when you're between the ages of 32-35 to put towards a down payment in addition to whatever else you might have saved. In addition to the home potentially appreciating.

Alot of higher paid professions rent in order to stay mobile and focus on career. They may consider this as well.

 

Sounds good in theory ..... but that's theory, not practice.

 

How are you going to save $500 a month?

 

too yolo to care about owning a home. i wouldn't be surprised if it was the threat to their tiktok.

 

Take an average home at $400,000

A 15 year fixed mortgage is 5.4%, leaving a principle + interest payment of $2,600
A 30 year fixed mortgage is 5.9%, leaving a principle + interest payment of $1,894
A 50 year mortgage would likely be at 6.3%, giving you a principle + interest payment of $1,350-400 ish

Property tax/Insurance remains constant

The difference is larger for more expensive homes, and smaller for cheaper homes. I don't know how realistic it is to build homes to sell at $250k so you would approach this from a monthly payment perspective. After 10 years you've only paid off $30k or so towards equity and the rest is interest (compared to $72k for a 30 year, $105k for a 15). Obviously not recommending it if you want to actually own that particular house. You have to compare it to how much cheaper it would be to rent including maintenance.

 

the 50 year at 6.3% would be more like $1,750

 

Getting more money from they working class into the pockets of the ruling class.

That is the republican platform and this type of thing fits it to a tee. We let you have a little more money monthly,and you pay it back to us 10x.

 

Where are you getting these numbers?

P&I only on a 400k note:
15 yr @ 5.4%: $3,247.15
30 yr @ 5.9%: $2,372.55
50 yr @ 6.3%: $2,194.83

More realistic interest rates (future)
15 yr @ 2.75%: $2,714.49
30 yr @ 3.25%: $1,740.83
50 yr @ 3.75%: $1,477.20

 

Oh noes! Attack of the NIMBYs!

https://www.fox5dc.com/video/1740796

@mtbrays
@astros123

 

Lol this is some real Houston energy in NOVA.