The Trump administration is considering a 50-year mortgage plan amid a housing affordability crisis, but critics warn that it could exacerbate household debt.
The 30 year mortgage was a mistake now 50? Lol so most home buyers won’t start paying down the principle of the loan until 35 years into the mortgage?! Banks are so turned on by this idea. Even more so with American having a massive economic downturn every 5 years.
I also worry home prices will jump to eat up any monthly cost differences, too. Like okay your 50 year mortgage is $100 less a month but we increased the price of the house by $50000 so unless you’re already a homeowner (and plan on renting next) then you’ll be further priced out of the market.
The 30 year mortgage was a mistake now 50? Lol so most home buyers won’t start paying down the principle of the loan until 35 years into the mortgage?! Banks are so turned on by this idea. Even more so with American having a massive economic downturn every 5 years.
I also worry home prices will jump to eat up any monthly cost differences, too. Like okay your 50 year mortgage is $100 less a month but we increased the price of the house by $50000 so unless you’re already a homeowner (and plan on renting next) then you’ll be further priced out of the market.
That’s the whole point. This doesn’t affect institutional purchasers because they pay cash most of the time. It ONLY hurts individuals.
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