I don't consider Trump a dumb man but his 50 year mortgage idea is pure stupidity

[diamenz]

Terrible suggestion to just keep the ponzi going, I hope no one ever takes a 50 year loan.

Fixing housing prices has become close to impossible in many western countries, it's very unfortunate.

you buy a home that's fifty years old and by the time it's paid off it's a hundred. unfortunate no doubt.

[Baller234]

"Did you read the thread?..."

- guy who didn't read the thread.

[crosstin]

A REAL solution? The Gov should flat out give people financial help when buying a home based on their own personal income. A family of 4 making $80k a year total? That family needs real help, not work around help and tax deducations. They need actual money.

I have my doubts on this working unless the government is going to be making the payments too. We already went through something similar in the early 2000s where anyone that wanted a house could get one. It obviously ended horribly. If the government starts helping people get into a house, it will only increase demand and higher home prices. The government will have to be making people's payments as well. The only way to make homes more affordable is to reduce demand and increase supply. You can either do something about investors or like another poster stated build a sheetload of houses. Our population is stagnating and boomers are dying off so it will eventually correct but for anyone without a good income, or the ability to save, looking to buy in next 10 years then you're probably screwed.

[Baller234]

I have my doubts on this working unless the government is going to be making the payments too. We already went through something similar in the early 2000s where anyone that wanted a house could get one. It obviously ended horribly. If the government starts helping people get into a house, it will only increase demand and higher home prices. The government will have to be making people's payments as well. The only way to make homes more affordable is to reduce demand and increase supply. You can either do something about investors or like another poster stated build a sheetload of houses. Our population is stagnating and boomers are dying off so it will eventually correct but for anyone without a good income, or the ability to save, looking to buy in next 10 years then you're probably screwed.

That was totally different. Those were option ARM mortgages. When the housing market cratered the interest rates shot up and those people were under water.

These are fixed rate mortgages. You'll still need the same qualifications as before. It's just about lowering the monthly.

[crosstin]

That was totally different. Those were option ARM mortgages. When the housing market cratered the interest rates shot up and those people were under water.

These are fixed rate mortgages. You'll still need the same qualifications as before. It's just about lowering the monthly.

Correct but that was only part of the problem. The other half of the problem was stated income loans. Banks were literally "correcting" people when they said how much money they made.

"You need to make $5000 a month to afford this home. How much money do you make?"
"uhmm around $3000 a month" "
"I don't think I heard you right. You need to make $5000 a month to afford this home. So how much do you make a month?"
"Oh! $5000 a month!"
"Perfect. Sign here"

In 2006 nearly 40% of loans were stated income loans

In order for a healthy home market to succeed, you need to bring home prices down to the buyer. Not the buyer up to the current home prices (by whatever means).

[rmt]

This is the same concept as a 7 year auto loan EXCEPT on an APPRECIATING (house) instead of DEPRECIATING (car) asset - BIG difference. With this $38 trillion debt, the government will have no choice but to print more money and inflate away the dollar. This is explained in The Great Melt Up (below - episodes 1-4) where only REAL assets (including real estate) will keep up.

This is what Trump does - throw ideas out there. His most stupid one was getting rid of the filibuster :-(

[ShawkFactory]

Uhh..

Did you miss the first post at the top of this page? The one with the huge screenshot?

Lol literally 3 posters on this page were talking about MTG.

Yea fair. I didn't pay attention to the screenshot, only what people were actually saying in here. Oh well.

As for the topic though, you're starting to sound a little more like a liberal here too though. Give people options to buy a home regardless of what it does to the market. This is kind of just kicking the buck down the road.

And hey...maybe that's just how things work in this type of economic environment. Things inevitably will spiral out of control and you have to continuously put band aids on it to make it manageable for people day-to-day. Not really opposed to that and if we're too far gone already (which let's be real..we probably are) then fvck it.

[highwhey]

This is the same concept as a 7 year auto loan EXCEPT on an APPRECIATING (house) instead of DEPRECIATING (car) asset - BIG difference. With this $38 trillion debt, the government will have no choice but to print more money and inflate away the dollar. This is explained in The Great Melt Up (below - episodes 1-4) where only REAL assets (including real estate) will keep up.

This is what Trump does - throw ideas out there. His most stupid one was getting rid of the filibuster :-(

oh man i don't even know where to start

[rmt]

oh man i don't even know where to start

Since we're not mind readers, maybe you can just STATE what you think.

When we bought our home in the early 90s, it was under $200k - now it's over 4 times that. Inflation has not been that high over that time period, and the country's debt then was nowhere near what it is now. Meaning more inflation/rise of asset price and less dollar value in the future. I imagine a 50 year mortgage will only magnify/inflate the value of a house.

What needs to be tied to inflation is the $250k tax exemption that one can claim on selling primary residence - that is static and its value erodes with time.

[highwhey]

Since we're not mind readers, maybe you can just STATE what you think.

When we bought our home in the early 90s, it was under $200k - now it's over 4 times that. Inflation has not been that high over that time period, and the country's debt then was nowhere near what it is now. Meaning more inflation/rise of asset price and less dollar value in the future. I imagine a 50 year mortgage will only magnify/inflate the value of a house.

What needs to be tied to inflation is the $250k tax exemption that one can claim on selling primary residence - that is static and its value erodes with time.

again, i don't even know where to start

[ZenMaster]

you buy a home that's fifty years old and by the time it's paid off it's a hundred. unfortunate no doubt.

Does have some applications though, like if you've just accepted that you won't be able to get into the market on a 30 year, then you can take this and still get benefits when prices rise that you wouldn't renting. You can also better yourself while having the relative lower monthly expense so you can make more later and pay off the mortgage much quicker. Also, even though it does suck how much more expensive it'll get over 50 years compared to 30, but you can set up the next generation of your family into a much better situation inheriting a house that's mostly paid off.

The entire problem with the housing market is just a capitalism thing. It is a very simple issue of supply and demand. Low supply/high demand = high prices.

A REAL solution? The Gov should flat out give people financial help when buying a home based on their own personal income. A family of 4 making $80k a year total? That family needs real help, not work around help and tax deducations. They need actual money.

A problem across most of the western world is that housing is now seen as an investment that you expect to rise while you have ownership. All politicians of the countries own and many have entities supporting them who also benefits from housing rising, so any plans to build higher, taking airnbnbs off the market, force empty offices into apartments, it's all not in their own interest to get it done.

[Baller234]

Does have some applications though, like if you've just accepted that you won't be able to get into the market on a 30 year, then you can take this and still get benefits when prices rise that you wouldn't renting. You can also better yourself while having the relative lower monthly expense so you can make more later and pay off the mortgage much quicker. Also, even though it does suck how much more expensive it'll get over 50 years compared to 30, but you can set up the next generation of your family into a much better situation inheriting a house that's mostly paid off.



A problem across most of the western world is that housing is now seen as an investment that you expect to rise while you have ownership. All politicians of the countries own and many have entities supporting them who also benefits from housing rising, so any plans to build higher, taking airnbnbs off the market, force empty offices into apartments, it's all not in their own interest to get it done.

NOW see an investment? Real estate?

Real estate has always been seen as an investment.

[TeflonDonTrump]

Moron has no idea what he is saying... "50 YAY!! BIGGER NUMBER THAN FDR!!!"

Savvy businessman, my ass. He doesn't understand finance 101.

If someone took a 50yr loan at 30, they would likely be dead before they finished paying off the loan lol. What happens then? The bank takes over the house? Do NOT take out a 50yr loan. Ever. You're better off renting if you don't have enough income for a 30yr loan. Even 30yr loans aren't great tbh.

Savvy business men know if you can lock in a rate of 2.3% for a home, which millions did in 2018, you would wish the loan is 1000 years long clown

[Baller234]

Savvy business men know if you can lock in a rate of 2.3% for a home, which millions did in 2018, you would wish the loan is 1000 years long clown

Blade is a fukking retard.

"If someone took a 50yr loan at 30, they would likely be dead before they finished paying off the loan lol. What happens then? The bank takes over the house?"

No you moron, the owner's estate does. By the time that person dies, hopefully in their old age, that same property will be worth exponentially more. Whoever inherits the property can either:

- Live there and keep making payments
- Live there and refinance
- Rent the house to tenants and turn it into a monthly income
- Sell the property, pay back the bank in full, and walk away with hundreds of thousands in profit.

The bank doesn't take over the property unless there's a failure to pay.

Imagine making fun of other people for being financially illiterate, and then in the next breath try to make the case that renting is better than owning a home and taking on a 30 year mortgage. Which is basically the standard length mortgage for most home buyers.

[Bill Gates]

Savvy business men know if you can lock in a rate of 2.3% for a home, which millions did in 2018, you would wish the loan is 1000 years long clown

This is false. Do you know what amortization is?