OT: 50 year mortgages?

[StickierBuns]

Really? This is the burden we want to saddle the financially ignorant of our country with? Its beyond stupid and basically insidious. Homeowners will build equity much more slowly and could, ultimately, end up on the hook for almost double the interest they’d pay compared to a standard 30-year mortgage. Selling souls to the company store (lenders).

[mblack]

Yup. That’s how “they” are helping us.
The part no one is really focusing on is that many people would die before paying off these loans. For example if you buy an house at 30 with a 50 mortgage you’ll pay it off at 80 assuming no extra payments. Given the life expectancy is trending the wrong direction, some will not make it to the payoff date and the house they spent their entire life trying to payoff will be foreclosed on them.

But don’t worry they will also help us out by providing and option to prevent such forecloses for a small fee you can add to the mortgage and your family can continue payments if you pass.

[StickierBuns]

Yup. That’s how “they” are helping us.
The part no one is really focusing on is that many people would die before paying off these loans. For example if you buy an house at 30 with a 50 mortgage you’ll pay it off at 80 assuming no extra payments. Given the life expectancy is trending the wrong direction, some will not make it to the payoff date and the house they spent their entire life trying to payoff will be foreclosed on them.

But don’t worry they will also help us out by providing and option to prevent such forecloses for a small fee you can add to the mortgage and your family can continue payments if you pass.

The next big bubble to burst is personal debt.....people are not paying it off, are dying out of it and these lenders will be left holding the bag and another ridiculous bail out awaits. Personal debt has never been higher.....revenge travel after the pandemic has wrought havoc on finances of people that can't afford it, don't care that they can't afford it because they 'deserve it'. Hence travel and hospitality costs are ridiculously high because the market bears it. And social media demands that you keep up with the Joneses if you aren't strong-minded or lacking in perspective/common sense. 

And oh yeah, don't forget: the only reason people are still getting Social Security is because of the people NOW working and contributing.....the money is gone otherwise.

[StickierBuns]

And what could possibly go wrong here?

SoFi rolls out crypto trading for retail customers

https://finance.yahoo.com/news/sofi-roll...19758.html

[AGRforever]

Really? This is the burden we want to saddle the financially ignorant of our country with? Its beyond stupid and basically insidious. Homeowners will build equity much more slowly and could, ultimately, end up on the hook for almost double the interest they’d pay compared to a standard 30-year mortgage. Selling souls to the company store (lenders).

We’re on a 15yr. We bought an Airbnb and one thing I didn’t factor in was our debt to income ratio. We’re able to do it but because the rental income hasn’t been added in yet it’s made it more challenging.

[Still Hurtn]

Beyond Stupid idea.

From my understanding this is coming from the Trump administration. Hope they come to there senses.

[Waterboy]

Really? This is the burden we want to saddle the financially ignorant of our country with? Its beyond stupid and basically insidious. Homeowners will build equity much more slowly and could, ultimately, end up on the hook for almost double the interest they’d pay compared to a standard 30-year mortgage. Selling souls to the company store (lenders).

Here we go again with a "non-political" political shot at Trump.  Without diving into the details, home ownership is a huge advantage over renting.  Home ownership as the world currently stands is nearly impossible on the entire North American continent due to numerous factors.  Applied correctly 50-year mortgages present an opportunity to replace people renting their entire lives which is much asinine than the concept of a 50-year mortgage.  Viewed as a one size fits all solution, it would be dumb.  Viewed as a targeted way to replace renting with ownership, it's an interesting concept that should be explored further.  But at least you got to take your political shot at Trump in a forum that's supposed to veer away from politics.  Congrats on that.

[StickierBuns]

Here we go again with a "non-political" political shot at Trump.  Without diving into the details, home ownership is a huge advantage over renting.  Home ownership as the world currently stands is nearly impossible on the entire North American continent due to numerous factors.  Applied correctly 50-year mortgages present an opportunity to replace people renting their entire lives which is much asinine than the concept of a 50-year mortgage.  Viewed as a one size fits all solution, it would be dumb.  Viewed as a targeted way to replace renting with ownership, it's an interesting concept that should be explored further.  But at least you got to take your political shot at Trump in a forum that's supposed to veer away from politics.  Congrats on that.

So Jimmy....instead of throwing the baby out with the bathwater like you usually do, just scrub this nitwit from the thread. Everything has been civil, discussing a financial model, nobody brought politics into it except for numbnuts here. Obviously he can't be at the adult table. Your call.

[pattersaur]

My kids' kids' will be set up for life once they pay off my 50-year mortgage (that I later re-fi'd into a 70-year mortgage). Oh and they'll have to use my will to pay off the HELOC that 78-year old me took out to buy for a new hip. But after that they will be SET. Granted, the quiet suburban home I thought I'd be passing down to them is now squeezed in between a Walmart and a prison. But all thanks to me, my family will be set up for generations, living the American dream

[purplefaithful]

50 yr mortgage? Ranks right up there with an 84 mos car loan.

God help the future gens is all I can say.