50 Year Mortgage

[Dale Floyd]

https://thehill.com/homenews/administration/5597005-trump-administration-50-year-mortgage/

Of all the things that will NOT make housing better, is something like this….

Not sure what the president is thinking, but this would be a personal finance disaster.

$300,000 mortgage
5.5% interest rate
Payment calculations are
20 years is $2,064 - Total interest is $195,279
30 years is $1,703 - Total interest is $313,212
40 years is $1,547 - Total interest is $442,709
50 years is $1,470 - Total interest is $581,722

 

[jay trotta]

Once the backstop is gone (appraisers) Banks will control the Total package.........Huge Mistake for the public, Huge gains for the banksters. Donny knows exactly what he's doing by allowing this to take place, along with Reepublicants hold in both chambers.

The American dream is or will be history sooner, than later.............that falls on who is in office at the time

 

[Trihard]

https://thehill.com/homenews/administration/5597005-trump-administration-50-year-mortgage/

Of all the things that will NOT make housing better, is something like this….

Not sure what the president is thinking, but this would be a personal finance disaster.

$300,000 mortgage
5.5% interest rate
Payment calculations are
20 years is $2,064 - Total interest is $195,279
30 years is $1,703 - Total interest is $313,212
40 years is $1,547 - Total interest is $442,709
50 years is $1,470 - Total interest is $581,722

Revision Request:
Appraiser to provide commentary regarding the lack of adjustments or market reaction analysis between properties financed with 30-year and 50-year mortgage terms. The appraiser must address whether extended financing terms (40-year and 50-year amortizations) are typical or atypical for the subject’s market area and explain how these terms may influence buyer behavior, affordability, and overall market value.

Please confirm that the appraiser has considered any potential market distortion resulting from these extended loan products and, if applicable, applied appropriate time or financing adjustments to comparable sales to account for their effect on buyer motivation and pricing trends.

Also provide detailed commentary why the following comparable sales were not used. A single paragraph does not suffice.

555 25 Miles away from the subject St., Hoboville, MI
546 C1 Lane While The Subject Is near a C5, Hoboville,MI
333 Bowing Foundation Blvd, Hoboville, MI
222 All Sports Lakefront Lane, Hoboville, MI.

-Class Valuation requires your revision to be sent back within 1 hour.

 

[Tom D]

Whatever they do to make housing affordable, or giving tax incentive, it only raises the values. Within a short period, any savings is lost. And oh do the authorities who tax real estate, love the golden goose laying those eggs.
Pretty soon we will all be living in the company town.
Welcome to town usa. Walmart will be the company store. CU will be the chief appraiser and staff.

 

[Fernando]

With 50 year mortgages, more buyers can afford to buy a house. Maybe I can afford a $5 million home.

 

[Tom D]

Don't plan on retiring when you have bought that house. The real estate taxes will eat your retirement money, as it keeps going up to feed the government.

 

[Gobears81]

I recall Peter Lynch talking about how we are taxed on our savings, but get tax breaks for our debt, then wonder why there is a savings problem in this country.

I read an article over the weekend and a "personal finance expert" had four recommendations - three were to take out a loan.

 

[Non Sequitur]

Some who support this point out the vast majority of mortgages are held under 10 years, so comparing the total interest paid at the end is moot. Eh, I think they miss the point of home ownership. A 50 year mortgage is just too long, and absent a rise in the market a borrower won't see any real equity growth for 20+ years.

Beyond all of that, IIRC the GSEs by charter can't buy these things. So it's up to the private markets, and from what I've read there's no appetite to tie up money in 50 year mortgages/bonds. Either way, it will take more than a magic wand swipe from anyone for a 50 year mortgage market to emerge.

 

[Mark K]

50 yr mortgages are little more than rent, but at least this 'rent' payment is deductible, for a few. The large Standard Deduction makes most interest payments moot.

They'll be making these loans to people who spend a lot of their income on lottery tickets. Which reminds me...I have to go buy a ticket for the 900 Mil Mega lottery. But I don't have a mortgage. I buy when it gets close to a Billion. Anything less than that isn't worth the time. LOL!

I recall Peter Lynch talking about how we are taxed on our savings, but get tax breaks for our debt, then wonder why there is a savings problem in this country.

The gov't subsidies encourage more of what they want. They want to keep people in debt to keep them in line. Can't cause too much trouble if people are working 8-10 hrs/day.

I read an article over the weekend and a "personal finance expert" had four recommendations - three were to take out a loan.

That's how dumb a lot of "experts" are with the "borrow your way out of debt" mantra. Unless you are taking out a low interest loan to pay off a high interest loan, OK. But then a lot of idiots get a HEL or refi to pay off credit cards (paying for tennis shoes for 30 years) and then proceed to quickly run the cards up to the max. Or pay off a car loan, paying 30 years on a depreciable asset that's worth next to nothing in 10 years. Rinse/repeat. I've seen it hundreds of times.

 

[JTip]

M&T Bank offers auto loans with terms up to 84 months, with 43.74% of loans having an original term of 77–84 months. The loans start at $2,000, and have an APR of 6.89%–15.89%. M&T Bank also offers relationship discounts for customers with qualifying consumer checking accounts.

7 year loan on a car. 50 year mortgage is for the same client as a 7 year car loan.