(11-10-2025 10:04 AM)rath v2.0 Wrote:  

(11-10-2025 09:12 AM)TripleA Wrote:  

(11-10-2025 09:00 AM)rath v2.0 Wrote:  Or get foreclosed on. See 2007

Then the lender was a damn idiot. Which is what happened in 2007/08.

That's on them, not on the mortgage tool.

Lenders make theirs on the front end. Mtg brokers make their points immediately at the closing table.

You get upside down in 10-15 years they aren't losing sleep. 2007 was due to government policies adopted to get people into homes they otherwise couldn't afford or more home than they could afford when the price bubble popped.

FWIW on a 50 year conventional you'll be paying mostly interest for the 1st 40 years. lol going to create a generation of indentured serf class of borrowers with inflated pricing.

I built large custom homes for a number of years. I understand the process.

And none of that changes the idea of the loan. The trick is not to loan to those who can't afford it.

And no, you won't create a generation of indentured servants. The idea is to get first-time buyers in. As their earnings go up, they sell and move on, and can afford to get into a more conventional loan.

Then the next batch of first timers comes through, and repeats the process.

You may need a primer on mortgage brokerages then. Bwahahah!

The old used car sales saying applies to mortgages...there is an ass for every seat.

(11-10-2025 10:11 AM)rath v2.0 Wrote:  You may need a primer on mortgage brokerages then. Bwahahah!

You missed my edit. I built large custom homes for a number of years. Upwards of $1M each. 20+ years ago. My own company. Quite successful. I understand the process. You are just wrong about this one.

Jope. Same argument I made 25 years ago when we did things to get people into homes..it will end the same way it did in 2007-08.

(11-10-2025 10:17 AM)rath v2.0 Wrote:  Jope. Same argument I made 25 years ago when we did things to get people into homes..it will end the same way it did in 2007-08.

Well, I hope I live long enough for us to keep arguing about it until it happens.

I do not oppose a 50 year mortgage option under proper requirements and with the ability to prepay without penalty. My wife and I had a fixed 30 year mortgage, but paid it off within 20 years by paying extra each month right from the start.

I would think as careers progress and their income rises they could either refinance or increase their payments to pay it off faster.

That's how it's supposed to work unless there is a downturn. And there will be a downturn as sure as day follows night.

Only reason we don't have another massive housing crisis in 2020 like we did in 2007 was the insane amount of $$ that was pumped into the system.

And again....prices will spike and the down payment on a 50 year fixed and PMI is going to be significant. This isn't about making homes more affordable for people who can't afford a home now.

It's a solution that merely exacerbates a problem on the consumer side to the benefit of companies lobbyists represent.

Per the FHA close to 90% of residential mortgages are 30 year terms. And less than 28% of all American home owning households have actually paid off their mortgage before retirement age. Gos bless refinancing and moving up like George and Weezy.

The average age of people who either completely pay off their mortgage or who sell to downsize or rent to get out of a mortgaged property is about 64 years old

Hands up. Who actually thinks that percentage ais going to go up with a 50 year fixed? And who thinks the average age to get out of holding a mortgage is going to get lower than it currently is when you funnel people through underwriting towards a 50 year mortgage?

Buhler...? Buhler.....?

Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

(11-10-2025 09:13 AM)CardinalJim Wrote:  Offer the 50 year loan and let young people start building equity. Once they have established themselves in a career, they can refinance using the equity they have already created as a down payment.

This plan would make apartment prices drop as the housing market would open up to new buyers who can’t presently afford to save a down payment while paying exorbitant rent.

There need to be some rules to keep investors from qualifying for these loans. BlackRock and other financial speculators need to be banned from investing in single family homes.

This will work if it can get through the special interest lobbyists in DC.

Sadly we’ve got to compete with the people who destroyed the system to fix it.

What equity? Unless they buy the home with a large down payment or the house they buy massively appreciates in value at 2020-2022 levels you wouldn't be building any appreciable equity for minimum a decade. We bought a home 1 1/2 years ago on a 30 year mortgage with a 6.875% interest rate. In that 1 1/2 years of payments we've paid down less than 5k of the principle balance. A 50 year mortgage amortization schedule would be insane, you'd be paying down probably less than $100 a month in principle to start with. The only real equity we have is from our down payment, and if you are someone who needs to take out a 50 year mortgage you are probably the type of person who doesn't have 50-100k to put down, because if you did you wouldn't need a 50 year.

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

80 or 90% LTV is going to be standard but I would expect that the down payment requirements on a half century long term to be equal or higher and will require PMI. Lenders are going to protect themselves.

This isn't about making homeownership more accessible.

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

The DP is generally a fixed percentage of the home's selling price, so it usually wouldn't change based on the type or length of the mortgage.

(11-10-2025 12:54 PM)rath v2.0 Wrote:  

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

80 or 90% LTV is going to be standard but I would expect that the down payment requirements on a half century long term to be equal or higher and will require PMI. Lenders are going to protect themselves.

This isn't about making homeownership more accessible.

Well, call Trump. He obviously thinks it is. Which is the entire purpose of his suggestion. :)

(11-10-2025 12:58 PM)TripleA Wrote:  

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

The DP is generally a fixed percentage of the home's selling price, so it usually wouldn't change based on the type or length of the mortgage.

It can change based on longer term. It's not always the case but it's not unusual to have a lower loan to value requirement on a 15 year than a 30 year. That is just common sense since there is longer time frame that the lending inventory is out there potentially.

(11-10-2025 01:02 PM)TripleA Wrote:  

(11-10-2025 12:54 PM)rath v2.0 Wrote:  

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

80 or 90% LTV is going to be standard but I would expect that the down payment requirements on a half century long term to be equal or higher and will require PMI. Lenders are going to protect themselves.

This isn't about making homeownership more accessible.

Well, call Trump. He obviously thinks it is. Which is the entire purpose of his suggestion. :)

You would probably hate this is Biden said it.

(11-10-2025 12:58 PM)TripleA Wrote:  

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

The DP is generally a fixed percentage of the home's selling price, so it usually wouldn't change based on the type or length of the mortgage.

But isn't the main problem for most people is coming up with a down payment ?

(11-10-2025 01:07 PM)Redbanksdog Wrote:  

(11-10-2025 12:58 PM)TripleA Wrote:  

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

The DP is generally a fixed percentage of the home's selling price, so it usually wouldn't change based on the type or length of the mortgage.

But isn't the main problem for most people is coming up with a down payment ?

It's part of the problem of people not having the required debt/income ratios to be able to qualify for mortgages. The more down payment you have the less mortgage you have to take out, making qualifying for a mortgage more possible.

(11-10-2025 01:06 PM)rath v2.0 Wrote:  

(11-10-2025 01:02 PM)TripleA Wrote:  

(11-10-2025 12:54 PM)rath v2.0 Wrote:  

(11-10-2025 12:39 PM)Redbanksdog Wrote:  Isn't one of problems for 1st time home buyers is coming up with a down payment to start the process? Will a down payment amount change wither it's a 30 year or a 50 year mortgage ?

I know when we bought our 1st and only house we had 10k to put down. The loan was at 8% for 30 years. After getting into the house I did the math for 30 years of payments. I said holy crap, will the house ever be worth that much. We paid our house off in 22 years by putting extra toward the principle after about 10 years. We still live in our 1st house.

Like I said, don't most people have to have some kind of down payment to start the process of buying a house ? I believe the problem is most people don't have a down payment to start with. Would the down payment change between a 30 or 50 year mortgage ?

80 or 90% LTV is going to be standard but I would expect that the down payment requirements on a half century long term to be equal or higher and will require PMI. Lenders are going to protect themselves.

This isn't about making homeownership more accessible.

Well, call Trump. He obviously thinks it is. Which is the entire purpose of his suggestion. :)

You would probably hate this is Biden said it.

No, I don't give a crap who said it. I just don't have a problem with it, as long as lenders don't do something stupid like they did the last time.

Remember, I was a homebuilder. I like the idea of people having more ways to legitimately purchase a home.

Sure you do. You'd understand how dumb of an idea this is otherwise.

It's a great idea for banks and developers. Maybe you are a bank or a developer.