50 Year Mortgage

[evince]

The exact same, and I do mean exactly the same, arguments made in the 50s against the 30 year mortgage.

Yeap


And then people began to live longer and longer

Nimble on our toes dude

Wise fact based decision making

It’s way better than just lying and saying “all the experts are lying libs because they got edumacated at lib colleges”


You have to believe the actual facts and base your decisions on facts or nothing you dream up will work


You ready to go back to facts are king again

It might be fun

 

[tigerred59]

Don’t get me started on this proposed private equity deal for the conference. It’s a deal with the devil.

The analogy people bring up is Chicago under the Daley administration when the city signed that seventy five year parking meter deal. They took about a billion dollars up front to plug budget holes and now they’re getting crushed long term.

Same idea here. The people pushing this don’t care about the long term ramifications.

I have experience over my 30 years, its not the house payments that bother you, ITS THE FUCKIN PROPERTY TAXES AND HOMEOWNERS INSURANCE THAT TRULY INFLATE MORTGAGE PAYMENTS. But especially for low income homeowners and combine that with a 50 year mortgage obligation, its a lose lose all around....but it will be the desperate and the ill educated that will for this shit.

 

[evince]

It might have some limited use

Generational home buying


Multigenerational habituating one property

Americans lived like that for hundreds of years

It solves many family needs

Childcare

Elder care

Deep emotional connections in a family are great for humans

I’m not apposed to it in a limited manner

It should be provided with a VERY LOW interest rate

I know so many families living multigenerational now


And finding that they enjoy it

 

[evince]

I have experience over my 30 years, its not the house payments that bother you, ITS THE FUCKIN PROPERTY TAXES AND HOMEOWNERS INSURANCE THAT TRULY INFLATE MORTGAGE PAYMENTS. But especially for low income homeowners and combine that with a 50 year mortgage obligation, its a lose lose all around....but it will be the desperate and the ill educated that will for this shit.

Limited applicant use


Who signs the loan

Grandma, son and daughter, granddaughter and her husband

Get it
A promise of payment by the entire family


In return they get a super low interest rate


Creating generational wealth

 

[cawacko]

The exact same, and I do mean exactly the same, arguments made in the 50s against the 30 year mortgage.

Because this interests me I actually looked into that last night and it isn’t accurate. There were some complaints about the 30 year at the time but they weren’t the same and they were based on different concerns. So it isn’t a good comparison.

I’m not trying to fight you here. I agree it is a tool. The problem is that we have a real housing crisis and the tool being floated right now is a bad deal for buyers and it would push prices even higher. That is the concern people have with this idea.

 

[Damocles]

Because this interests me I actually looked into that last night and it isn’t accurate. There were some complaints about the 30 year at the time but they weren’t the same and they were based on different concerns. So it isn’t a good comparison.

I’m not trying to fight you here. I agree it is a tool. The problem is that we have a real housing crisis and the tool being floated right now is a bad deal for buyers and it would push prices even higher. That is the concern people have with this idea.

That isn't true though, much the same points you have brought up were used against the 30 year loans when they were first created (once government guarantees made them accesible)...

Arguments AGAINST 30-year loans (1930s–1950s):​

1. "Too long — borrowers will pay way more interest!"→ A 5% loan over 30 years = ~2.5x the principal in interest.→ Critics said: "You're in debt for a lifetime!"
2. "Banks make too much money!"→ Longer term = more interest revenue.→ Seen as predatory or exploitative.
3. "People won’t stay in homes that long anyway."→ Average homeowner moves every 5–7 years (then and now).→ So why lock in 30 years of payments?

Arguments FOR 30-year loans (and why they won):​

1. Affordability→ Lower monthly payments = more people qualify.→ Post-Depression: Goal was prevent foreclosures, not minimize bank profits.
2. Government backing reduced risk→ FHA insurance + VA guarantees let banks offer long terms safely.
3. Economic stimulus→ Enabled mass homeownership → suburban boom → economic growth.

Sound familiar? Today’s 50-year mortgage debate uses the exact same logic:

• Critics: “It’s a 50-year debt sentence! Banks profit more!”
• Defenders: “Lower payments = access. Most refinance or sell anyway.”

 

[tigerred59]

Limited applicant use


Who signs the loan

Grandma, son and daughter, granddaughter and her husband

Get it
A promise of payment by the entire family


In return they get a super low interest rate


Creating generational wealth

You're looking from a "immigrant" prospective, I'm looking at it from my culture. We don't roll that way with all the family in on buying a new home. In all my years, I've never seen it happen. However, I can see a trend emerging and I can see ONLY THOSE WITH GREED INTENTIONS GRABBING UP HOMES IN THAT MANNER for a wealth hold on this nation. Its happened in NY...most of the homes and rentals...are owned buy Israelite Jews. google it. I can see large business owners and greedy foriegnors also taking up on this 50 year mortgage deal. Nonetheless, your ordinary family looking to buy a home, will in my opinion not fair well from this.

 

[tigerred59]

Seems to me, prices would go up, because a lot of home prices are based on what people can afford on a monthly basis. It is also one further step towards turning homeownership into something much more like Renting.

I think it’s a bad idea. More money for the banks, less for the middle class.

 

[tigerred59]

 

[Guno צְבִי]

It might have some limited use

Generational home buying


Multigenerational habituating one property

Americans lived like that for hundreds of years

It solves many family needs

Childcare

Elder care

Deep emotional connections in a family are great for humans

I’m not apposed to it in a limited manner

It should be provided with a VERY LOW interest rate

We live in multigenerational home

 

[ULTRA MAGA]

A lot of ideas get floated that never go anywhere, and the 50 year mortgage will be one of them. Still, it’s a terrible idea. The pitch is that it lowers the monthly payment and opens the door for more people to buy a home. In reality it just pushes prices higher because it doesn’t touch the supply problem.

It’s the same issue with rent freezes. These things can sound good at first, but they don’t create more housing and they make the underlying problem worse. It creates less opportunity for (younger) people and makes our economy less dynamic overall.

There is no supply problem. The problem is price. If you want houses to cost less than it costs to build them then there is no cure.

 

[tigerred59]

That isn't true though, much the same points you have brought up were used against the 30 year loans when they were first created (once government guarantees made them accesible)...

Arguments AGAINST 30-year loans (1930s–1950s):​

1. "Too long — borrowers will pay way more interest!"→ A 5% loan over 30 years = ~2.5x the principal in interest.→ Critics said: "You're in debt for a lifetime!"
2. "Banks make too much money!"→ Longer term = more interest revenue.→ Seen as predatory or exploitative.
3. "People won’t stay in homes that long anyway."→ Average homeowner moves every 5–7 years (then and now).→ So why lock in 30 years of payments?

Arguments FOR 30-year loans (and why they won):​

1. Affordability→ Lower monthly payments = more people qualify.→ Post-Depression: Goal was prevent foreclosures, not minimize bank profits.
2. Government backing reduced risk→ FHA insurance + VA guarantees let banks offer long terms safely.
3. Economic stimulus→ Enabled mass homeownership → suburban boom → economic growth.

The only people I see who will benefit from a 50 year are immigrants who

View attachment 65307

If it wasn't for my military service and my DD214 benefit, I wouldn't have been able to get my home. I was making 6.50 an hour working in a manufacturing plant back in the 90's and had fair credit. My rate was 7.6%. I never refinanced, thank God or I'd still be paying today. My home of 49,000, by the time it was paid off, I had paid the bank 49,000 in interest. They made a mint....meanwhile my home value according to the taxes I paid is now worth, 87,000 and that's on its best day. The neighborhood has gone down so bad with so much violence around it. What I see, should this 50 year mortgage hit, are home prices increasing, investors being its key buyers. I truly don't see average buyers having an advantage here, only the banks and the greedy

 

[Nordberg]

The core problem is that housing has become corporate. Millions of homes are being bought up and they are being rented out. The last few generations built wealth through homes. Now corporations and the super rich are taking that investment. They want people to rent their whole lives. Guess who will make the laws?

 

[Jarod]

That isn't true though, much the same points you have brought up were used against the 30 year loans when they were first created (once government guarantees made them accesible)...

Arguments AGAINST 30-year loans (1930s–1950s):​

1. "Too long — borrowers will pay way more interest!"→ A 5% loan over 30 years = ~2.5x the principal in interest.→ Critics said: "You're in debt for a lifetime!"
2. "Banks make too much money!"→ Longer term = more interest revenue.→ Seen as predatory or exploitative.
3. "People won’t stay in homes that long anyway."→ Average homeowner moves every 5–7 years (then and now).→ So why lock in 30 years of payments?

Arguments FOR 30-year loans (and why they won):​

1. Affordability→ Lower monthly payments = more people qualify.→ Post-Depression: Goal was prevent foreclosures, not minimize bank profits.
2. Government backing reduced risk→ FHA insurance + VA guarantees let banks offer long terms safely.
3. Economic stimulus→ Enabled mass homeownership → suburban boom → economic growth.

You you think lower monthly payments would result in more people buying resulting in higher prices?

 

[Damocles]

You you think lower monthly payments would result in more people buying resulting in higher prices?

I think that demand would cause others to increase supply because construction companies also want to make money.

I do not think that this tool would make only the "bad" things happen. If you get one of these mortgages, it will be just like those who got the first 30 year mortgages... That is pretty much it. It won't freeze prices. If it does raise prices then they can sell, refinance with a shorter term and lower rate, they'll get raises, etc.

This is just a financial tool, one like any other. It can be used, and just like any other of these tools it can create both types of results depending on situations. If this was the only way to buy a house, I would still recommend to my daughters to buy the house so that they would begin to build wealth.

 

[Jarod]

I think that demand would cause others to increase supply because construction companies also want to make money.

I do not think that this tool would make only the "bad" things happen. If you get one of these mortgages, it will be just like those who got the first 30 year mortgages... That is pretty much it. It won't freeze prices. If it does raise prices then they can sell, refinance with a shorter term and lower rate, they'll get raises, etc.

This is just a financial tool, one like any other. It can be used, and just like any other of these tools it can create both types of results depending on situations. If this was the only way to buy a house, I would still recommend to my daughters to buy the house so that they would begin to build wealth.

It would be both good and bad for sure, but I think moving further toward a "rental" based society from an ownership based society is not healthy.

The longer the mortgage the less likely true ownership is to happen, and the gulf between the haves and the have nots widens.