The Trump administration is considering a 50-year mortgage plan amid a housing affordability crisis, but critics warn that it could exacerbate household debt.
I’d think of it more as a way to lock in housing costs, rather than a way to buy a home. For example, I bought my condo 5 years ago. My apartment rent was say $2200/month including fees. My condo was $2000/month including fees, with a 15-year mortgage.
Five years later and my old apartment is listed for $3100/month. My condo is only $2200/month (fees went up).
I expect the spread to get worse over time.
Edit: not sure the cost would be lower enough monthly to justify the extra interest, but maybe there’s an edge case where it makes sense?
I’d think of it more as a way to lock in housing costs, rather than a way to buy a home. For example, I bought my condo 5 years ago. My apartment rent was say $2200/month including fees. My condo was $2000/month including fees, with a 15-year mortgage.
Five years later and my old apartment is listed for $3100/month. My condo is only $2200/month (fees went up).
I expect the spread to get worse over time.
Edit: not sure the cost would be lower enough monthly to justify the extra interest, but maybe there’s an edge case where it makes sense?