50 Year Mortgage

[shrubberyvaluation]

A 50 year mortgage will just jack up home prices as people will be able to afford a largest purchase price spread out more.

 

[ucbruin]

Good grief....
Why not just make all mortgages 15 years....
Or only cash purchases....

 

[alebrewer]

The 30 year fully amortizing loan is a government subsidy in itself, and has led to artificially inflating the housing market. From Perplexity:

 

[shrubberyvaluation]

The 30 year fully amortizing loan is a government subsidy in itself, and has led to artificially inflating the housing market. From Perplexity:

View attachment 104760

Absolutely and now they are going even further, no credit needed also. Similar reasoning to why healthcare and college is so expensive.

 

[djd09]

 

[djd09]

https://twitter.com/x/status/1988582616518537405

your appraisal data...

 

[Mark K]

30 years, 50 years, who cares? The VAST MAJORITY of homeowners never get close to the 30 year term. Last I saw the average was about 8 years.

They'll simply have less equity when they sell. It will be little more than renting. They might as well make it an 'interest-only' loan.

 

[TerryRohrer]

Any mortgage is simply a means to consume today what might be earned in the future. Rewarding consumption leads to more consumption. As shortfalls in those future earnings increasingly become someone else's cost, more borrowing will occur to consume now, further leveraging already inadequate future earnings. Government involvement in anything simply fuels this fire. Anyone who thinks all the "affordable" and "workforce" housing programs, Section 8 rents, and low-income tax credits lower costs are simply omitting some of the costs to sell their agenda.

 

[George Hatch]

We don't have RE bubbles. We have financing bubbles.

 

[gregb]

There is a time to buy and time to cry.