(11-09-2025 06:54 PM)banker Wrote:  

(11-09-2025 06:15 PM)rath v2.0 Wrote:  Look at a traditional 30 year fixed at around 6% on a 400K purchase with 50k down. With PMI it's about a $2,600 monthly payment.

Now look at that same 400k house with a 50k down payment on a 50 year fixed. Goose the interest a point due to more lender exposure. It's about a $2,600 monthly payment. 600 easy monthly payments nets the bank @ 1,000,000 in interest.

Banks love suckers and BCD paper that pays.

This is just a scam to make bank and real estate portfolios $$.

Wrong way to look at it. You don’t get a 50/50, you get a 7/50, which would have a rate lower than a 30/30. Home mortgages don’t have prepayment penalties, don’t ever pay for money fixed for more than 10 years because somewhere in that 10 years you can refi for a better rate.

You would. And I would. You know where your industry will end up funneling people in that spot. Higher prices. Higher fixed rates.

(11-09-2025 06:26 PM)rath v2.0 Wrote:  It's the fault of an industry that preys on young people and folks who are desperate whenever it's profitable to do so.

You are pushing 80 so so this won't impact you. This will **** over a lot of people in my kids' generation. Prices will jack and that longer term nets banks higher interest over longer periods.

Keep your eye on the ball. This isn't to help more people buy. It's to help certain interests.

If the banks were pushing this idea, I would agree, But they aren't. It's Trump. He's pushing to give more young people a chance at home ownership.

And just b/c I'm old doesn't mean I don't care about the impact on others. My kids are in their 50s and have beautiful homes. My grandkids are in their late teens, 20s and 30s. The younger ones are the ones this could affect, as they are close to moving into first time home ownership.

I certainly wouldn't encourage them one way or the other, but I recall a time when mortgage rates were 17%, so anything to help first time homebuyers seems like a good thing to me.

Once you make a deal you qualify for, your income usually increases as you age, so it shouldn't be a burden later on. And as others have said, most people buy and sell houses all through their lives.

I have a 30 year mortgage right now, at 2.26%, b/c I can put my money to use elsewhere and earn more, and how much I owe at any particular time doesn't affect the price I can get if I decide to sell. Or die, lol.

Just put a balloon after ten and then no more than a 30yr afterwards. It could work. Banks will just sweat those 10 years during corrections.

Note from a Canadian:

Quote:They tried something like this a couple of decades ago here in Canada and it was the start of our skyrocket housing prices. People thought they could get into ownership with a longer mortgage with barely cheaper monthly payments. The builders and realtors just increased the prices to make the monthly near the same or more for less house. Complete backfire.

(11-09-2025 08:22 PM)rath v2.0 Wrote:  Note from a Canadian:

Quote:They tried something like this a couple of decades ago here in Canada and it was the start of our skyrocket housing prices. People thought they could get into ownership with a longer mortgage with barely cheaper monthly payments. The builders and realtors just increased the prices to make the monthly near the same or more for less house. Complete backfire.

Nobody said something couldn't go wrong. Greed is everywhere.

But this is reportedly Trump's idea, and he doesn't do things like this to curry favor. Especially when he's out after this term.

It would also be nice to allow more young people to be able to own homes. That's good for everybody, and the economy.

Trump was going to end rolling our clocks back too. Just sayin’.

(11-09-2025 10:19 PM)BartlettTigerFan Wrote:  Trump was going to end rolling our clocks back too. Just sayin’.

I think he's had more important things to worry about lately.

NOTHING IS MORE IMPORTANT THAN MY SLEEP.

(11-09-2025 11:18 PM)BartlettTigerFan Wrote:  NOTHING IS MORE IMPORTANT THAN MY SLEEP.

Well, didn't we turn the clocks back and you gained an hour of sleep?

Peter Thiel had this to say on the topic of young people and why they believe as they do.

"“When 70% of Millennials say they are pro-socialist, we need to do better than simply dismiss them by saying that they are stupid or entitled or brainwashed; we should try and understand why.”

At least we have a President that is thinking outside of the boomer box

My honest opinion was against this when I first read the thread. The more I thought about it, the more I thought it could help. With any change like this, of course price goes up. The problem as I see it, a lot of boomers can't see past "its different" and "not the way we did it". Those type of thoughts.

Most things hurt before they start helping and this will be one of them. The upside easily outweighs the increase in home prices. I will keep repeating this because I think some people dont understand the problem or just cant see it...

This can and will help out more than on home ownership for first time buyers. Those people are also being removed from the rental market. A market that has outpaced home prices. A market that saw rental homes that were getting $600 5 to 6 years ago now being rented for $1200 to $1500. That's small town USA not big city where it's a bigger problem.

If I have to get screwed at least with ownership I get something in return

(11-09-2025 09:32 PM)TripleA Wrote:  

(11-09-2025 08:22 PM)rath v2.0 Wrote:  Note from a Canadian:

Quote:They tried something like this a couple of decades ago here in Canada and it was the start of our skyrocket housing prices. People thought they could get into ownership with a longer mortgage with barely cheaper monthly payments. The builders and realtors just increased the prices to make the monthly near the same or more for less house. Complete backfire.

Nobody said something couldn't go wrong. Greed is everywhere.

But this is reportedly Trump's idea, and he doesn't do things like this to curry favor. Especially when he's out after this term.

It would also be nice to allow more young people to be able to own homes. That's good for everybody, and the economy.

Banking and real estate lobbyists got in Trump's ear, IMO. He didn't just come up with this idea.

(11-10-2025 01:52 AM)rath v2.0 Wrote:  

(11-09-2025 09:32 PM)TripleA Wrote:  

(11-09-2025 08:22 PM)rath v2.0 Wrote:  Note from a Canadian:

Quote:They tried something like this a couple of decades ago here in Canada and it was the start of our skyrocket housing prices. People thought they could get into ownership with a longer mortgage with barely cheaper monthly payments. The builders and realtors just increased the prices to make the monthly near the same or more for less house. Complete backfire.

Nobody said something couldn't go wrong. Greed is everywhere.

But this is reportedly Trump's idea, and he doesn't do things like this to curry favor. Especially when he's out after this term.

It would also be nice to allow more young people to be able to own homes. That's good for everybody, and the economy.

Banking and real estate lobbyists got in Trump's ear, IMO. He didn't just come up with this idea.

Maybe so. Does that matter in the long run? It's either a good idea, or not. If you can afford a 50-year mortgage, what is the issue? I don't get the angst.

The mortgage market collapsed in '08 b/c too many lenders made bad loans. Which has zip to do with making the terms of a loan longer. You can either afford it, or not qualify.

Extend it to 50, who cares? The key is not to give loans to people who are likely to default. Business 101.

(11-09-2025 01:49 PM)TripleA Wrote:  Video here:

https://www.foxnews.com/video/6384870387112

This only works if the rates are lower on the product.

320K Mortage (for a 400K home)

At 6% you are paying 1918.56 per month on just the loan (no tax ins etc). Over the life of the loan you are paying $50K more in interest than the actual principal on the loan.

Same thing except for 50 years. In the now, you are paying $1684 (appx $230 less) and now paying $370K more in interest than the original principal on the loan. You will not start building any reasonable equity through balance amortization for at least 20 years.


That is not a deal... without rate relief to go along with it.

(11-09-2025 02:25 PM)TripleA Wrote:  

(11-09-2025 02:09 PM)maximus Wrote:  Not too much of a fan of this unless it has some refi incentives somehow. In general I think its a bad idea

Sent from my SM-S928U using Tapatalk

I have mixed feelings. It means people pay much more over the life of the loan, and banks profit greatly from it.

BUT...it also means that some homebuyers will be able to enter the market, who cannot currently do so.

Double-edged sword, so to speak...but I don't see the harm in offering the longer mortgage. It's up to individuals to take that on, or not. Just like everything else in life.

I'm not crazy about it either, but as someone who recently bought a house we had the option of a 15 or 30 year mortgage.. Those options are still on the table.

Will they pay more in the long run, sure, absolutely. However, the mortgages might be cheaper than rent and in the long run build up more equity.

Not a good idea, imo. These loans will never be paid off. Now, I guess people could get a 50 yr and pay it down like a 30 yr and have the safety to fall back to lower payments in tough times. But my lord, can you imagine the amount of interest that would be paid on a 50 yr mortgage?

(11-10-2025 08:27 AM)VA49er Wrote:  Not a good idea, imo. These loans will never be paid off. Now, I guess people could get a 50 yr and pay it down like a 30 yr and have the safety to fall back to lower payments in tough times. But my lord, can you imagine the amount of interest that would be paid on a 50 yr mortgage?

Yes - Twice the amount of the actual loan amount.

NOBODY pays the 360 payments of a 30 year loan. That total of payments number is irrelevant. Average life of a mortgage loan is 7 years. Just pop a balloon payment on the 50 year loan at payment 120, and make it so that the 50 year loan is only available for purchases of primary residences.

Some of you people are f'ing idiots...

most as in my opinion85% up of first time home buyers are not buying 400k homes. The median sale price for a starter home was about $243,000 in 2024.

Why can't you understand that people as in MOST, like 90+% are going to refinance with in 7 years of their first note? So running the numbers at almost double what people are buying and at the full 50 years is just stupid.

Have you looked at rent for the typical first time home ....around $2,000 to $2,400 a month for a home like the first time home buyer is buying. Now that is going to be for the next 50 years but higher, if they dont buy a home.

How do you bring rent prices down? You take all their demand....home ownership. Do that and the millions of homes bought up by LLC's and Blackrock type companies hits the market at some point. What does that do?

It brings down or offsets rising prices

(11-10-2025 08:27 AM)VA49er Wrote:  Not a good idea, imo. These loans will never be paid off. Now, I guess people could get a 50 yr and pay it down like a 30 yr and have the safety to fall back to lower payments in tough times. But my lord, can you imagine the amount of interest that would be paid on a 50 yr mortgage?

About $1,000,000 on a 350k loan at around 7%



The Weimar Republic would have thought this was a great idea.

(11-10-2025 08:37 AM)WKUYG Wrote:  Some of you people are f'ing idiots...

most as in my opinion85% up of first time home buyers are not buying 400k homes. The median sale price for a starter home was about $243,000 in 2024.

Why can't you understand that people as in MOST, like 90+% are going to refinance with in 7 years of their first note? So running the numbers at almost double what people are buying and at the full 50 years is just stupid.

Have you looked at rent for the typical first time home ....around $2,000 to $2,400 a month for a home like the first time home buyer is buying. Now that is going to be for the next 50 years but higher, if they dont buy a home.

Buying a starter home is supposed to be something the builds equity do you can upgrade down the road. If you are making the contract payments only - you are paying virtually nothing on principal - and right now property values are declining so you may actually lose money in that situation. A 30 year is not much better right now either for that matter....