OT: 50 year mortgages?

[purplefaithful]

Its all broken down here and explains exactly why its so bad:

https://wolfstreet.com/2025/11/11/a-50-y...investors/

The amount of stubbornness on this is something else, because there is no defending a 50 year mortgage financially. None. The more mental gymnastics done trying to defend this concept just makes it worse and you soon realize that because this is being toted out there in a partisan way is the main reason why its being 'defended'. Which I find sad but its not surprising. The only thing better than a 50 year loan under this misguided logic would be a 70 year loan. I mean there's no ambiguity here, its a straight up horrific option to purchase a home. Its black and white. This isn't an 'agree to disagree' concept, lol. There is a right and a wrong answer, its straight up financial math. That this thread has gone on for 6 pages, with ample examples about WHY its such a bad idea leads me to believe we've gone too far down the hole for anyone to admit they might be wrong about this. Listen, I've bought and sold 8 houses in 3 different states....I can tell you that even a 30 year mortgage isn't optimal either. My house is paid for and I have zero debt, but I understand that maybe not everyone can do that. But just because home ownership costs have never been higher doesn't mean you put yourself in a horrible financial situation either. That isn't the solution, that's predatory lending.

Its a great illustration of why, as a country, we'll always now be a 'them vs. us' mentality because we won't be able to agree on even the most obvious things. It also exemplifies why you have to be your own advocate and be skeptical because no matter who or what party is leading the country, they don't care about us. And as soon as you realize that in a real way, you'll have more clarity of thought.

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...and 6 year loans on furniture and appliances.

^^^ at the bold

This will probably end-up a 9 page thread, but (so far) its remained civil, which is a testament to those posting. 

It's always been them vs us -- but it took a turn for worse (and worse still) from 2016 on. 

There's plenty of blame on both sides, the rage starts in our homes and stops in DC...Sorry to get preachy, but everyone please get out of our own media echo chambers, quit looking for reasons to be angry, I guarantee you'll find em everyday. 

Comet is right with his sig, social media is the cancer of this generation (something like that)

I luv the notion of be your own advocate because nobody else really is. Nobody in politics anyways.

[pattersaur]

Why not...our govt is loaning money to cities everyday on paybacks that are twice the life of the products they are installing/purchasing.   Students get loans for degrees that will never ever cover the costs of of those loans.  Credit companies loan money to people with no logical means of paying it back.... we have a debt illness and its from the top down.

And so the solution is to... add more?

[StickierBuns]

And so the solution is to... add more?

Yeah, I never understand those thoughts. Its bad so lets just keep making it even worse? Because....?

[Waterboy]

Exactly.

How this could ever be defended is beyond me, it must be political because it makes zero sense outside in the real financial world of reality. The total of the loan cost goes up 50%. FIFTY PERCENT. You paid $1.2 million on a $400,000 loan. Tony Soprano wishes he had these rates. So save me your partisan rationale because nobody would want their son or daughter to make that deal.

Look at a 15 year mortgage the same way versus a 30 year mortgage, and it will appear totally ridiculous to ever take out a 30 yr mortgage as well.  It's a matter of can a 50 yr mortgage float you early and replace renting in your first ten years when you then likely refinance due to a better financial situation.  It's not universally smart or stupid, only the people making broad generalizations are.

[StickierBuns]

Look at a 15 year mortgage the same way versus a 30 year mortgage, and it will appear totally ridiculous to ever take out a 30 yr mortgage as well.  It's a matter of can a 50 yr mortgage float you early and replace renting in your first ten years when you then likely refinance due to a better financial situation.  It's not universally smart or stupid, only the people making broad generalizations are.

Trust me on this: it is universally stupid. Not recognizing it as such is personally financially ignorant. Harsh reality.

[Waterboy]

Ran a 50 year 6% 400,000 mortgage amortization table.  After 20 years you would have 50K in equity, have paid 480K.   The difference in renters and home owner insurance premiums alone seems would seem to make renting the better choice.  This looks to be setting the bank up as a landlord that's not responsible for upkeep and maintenance.  So with the lifespan of ave. American at ~78, is there going to be an age. cap of 30 years, a lifetime mortgage.

The fact that you're missing the point altogether is amusing.  If more houses are built for ownership than renting, housing prices overall go down.  50 year mortgages will never be realized, and interest rates are also likely to go down over time from where we're at.  If 50% of all loans become 50 year loans, you may have a point.  If 10% to 20% of loans are taken out as 50 yr loans and 90% of them convert to other durations within 10 yrs, it could work out quite well.

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Trust me on this: it is universally stupid. Not recognizing it as such is personally financially ignorant. Harsh reality.

I don't "trust" your opinion on anything.  And I think I've proved my financial common sense many times over both personally and professionally.  It's only people like you that think you're right about everything that are indeed totally confused. lol  Harsh reality.

[StickierBuns]

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I don't "trust" your opinion on anything.  And I think I've proved my financial common sense many times over both personally and professionally.  It's only people like you that think you're right about everything that are indeed totally confused. lol  Harsh reality.

[Waterboy]

The fact you don't understand that you don't know when to apply universal truths societally or factually is pretty amazing to behold.

[Zanary]

As home ownership has become a huge story in that less and less Americans can accomplish it, those loans could be very common. The glaring truth is that the overall economy has been brutal for the check-to-check Americans for generations, and this absolutely reeks of a scheme to fatten already fat banks/financial institutions under the guise of making the dream more accessible.

As pointed out above, it absolutely stacks debt in a time that's already seeing huge downturns in employment with threats of AI cancelling more and more jobs.

[Waterboy]

And so the solution is to... add more?

No, the point is that housing appreciates in value and that aids the individual versus the other programs he discussed just being giant wastes of our money.

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Now there is wait for it…. 15 year car loan to go with your 50 year home loan.

Cars typically do not appreciate in value.  I've never taken a car loan in my life.  Use a beater until you're ready to buy a real car.  There are plenty of cars that are quite affordable for most that don't require going in debt.  Housing is either throwing away money for rent or investing.  If communities would do more to contain their property taxes, that would be great as well.