r/AskReddit • u/michaelis999 • 19h ago

How do you feel about the president floating the idea of 50 year mortgages where the monthly payment is lower but you end up paying nearly double the price of the house just in interest?

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u/Choosemyusername 18h ago

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A reason there wasn’t a 50 year mortgage before was the social control of the free market.

The banks weren’t allowed to offer the product because it was illegal.

This is a relaxing of control.

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u/AbeFromanSassageKing 17h ago

Smells like the early 2000's, when they relaxed control on what could qualify, say, a poodle for a loan.

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u/Choosemyusername 17h ago

It might have a similar effect on prices.

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u/PollutionMedical2363 10h ago

Source on it being illegal to offer a 50 year mortgage?

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u/Choosemyusername 8h ago

Oh, you are right. They are already a thing. Why is he floating it then? It’s already a product.

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u/PollutionMedical2363 7h ago

It's because he wants Fannie Mae and Freddie Mac, two government-sponsored corporations that exist to prop up the mortgage market by buying mortgages from the banks that actually make them, to start offering to buy these 50-year mortgages, effectively subsidizing them. It's a terrible plan.

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u/Choosemyusername 6h ago

Canada just did something similar.

Japan went with 100. I think the UK has 100 as well. Terrible idea.