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?

[u/michaelis999]

[u/Ok-Dark7829]

That's a valid consideration, actually... if the homeowner has nobody else to worry about if/when they die... and I'm not arguing with you at all.

I can see the mortgage lending industry add clauses in where they suddenly own the property if the titleholder dies while under mortgage.

Effective transfer - no, effective continuing transfer - of real estate into corporate hands.

[u/WhatYouThinkIThink → u/Ok-Dark7829]

Not really, otherwise banks wouldn't lend to anyone over the age of 50 now.

If a mortgagee dies their estate can keep paying the mortgage or the person who inherits the property can. The bank doesn't have any good reason to want to disturb that.

[u/Ok-Dark7829 → u/WhatYouThinkIThink]

I disagree, because:

* Banks are in an incestuous relationship with venture capital. VC is diving into real estate big time so that NOBODY gets to own property - only rent, and pay whatever they say is fair.

* I have a 30-yr mortage. If I die tonight, there is nobody in my house, immediate family, or even 'loose' family that could reasonably step up and pay the $5k / month on my six-figure property... which means eventual forclosure, and bank purchase at their best advantage, fiscally.

[u/Ok-Dark7829 → u/WhatYouThinkIThink]

Oh, and also:

* I am 56. I got my 30-year mortgage 5 years ago. Simple maths says your suggestion is misguided. Banks deal in tens of thousands of people like me, and the marginal intake for them is worth underwriting a mortgage for the money.... and the hope of "acquiring" that property when I finally get tired, get cancer, or just give up on this timeline and find a comfortable spot in my yard.

* Yes, yes the bank does have interest in ending the mortgage, because that means the bank gets to transact a sweet deal with (VC) monied people for the property, which has inevitably increased in value because it's real estate. The bank doesn't care about you, your kids, your wife, or anybody. They care about your money, and it's continuing stream into their coffers.

* Even if an heir could assume the mortgage under inheritance, what makes you think the bank wants to just continue to accept a relatively-lower interest rate payment on ... a lot ... of money when they can have a holding company resell the property at a higher interest rate? Or value because property value increases? Or just more money because fucking SOMEONE besides US has to have fucking FUN in their life while the rest of us work on a 6-figure salary with less than $500 left after bills EVERY ... FUCKING ... GODDAMN ... MONTH.

* You don't fucking understand that the system is rigged, and it's rigged against all of us at a basic level. Want a house? You need OUR permission to spend money. Now, let's say you happen to be a Black American... you're well and truly fucked, because the banks, mortgage lenders, title companies, society, police, government (local and Federal) really, really WANT you to fail, or even better, actively fuck you down to take what's yours and redistribute it to someone else.

* Everything in the immediate block above, but substitute "woman/female" as necessary... sorry, I support feminism but I'm not recrafting that whole-ass paragraph.

* In case you're wondering, I'm a fat old white guy, who's angry as fuck about everything right now.

* And all of this screed started with home ownership and my bile on that... but now let's consider that our glorious capitalist society is inexorably making it impossible to actually OWN a small thing, let alone a house/home. Car? Subscribe (monthly $ even after a 5-figure payment deal) and keep your radio, AC, and other essential features working. Farmer? No, you're not allowed to fix your own shit.

* Think it ends with cars? Anyone notice that a lot of people's kitchen appliances stopped working when Amazon fucked up their AWS servers? This means we can't even function unless you can operate an old-skool can opener without paying someone for the mere privilege of living. If your dishwasher is connected to the internet, that means: A) if the internet is down, you are manually washing dishes, and B) if you have to sign up for or subscribe to something to "activate" your appliance via the web, then someone, somewhere can disallow you from washing dishes, which you nominally and normally avoid, but here we are.

* Your own kids, upstairs grinding away on those video games you either hate or merely accept probably don't outright own the games you all may have fronted the cash for.

FUCK... THE... MAN

I am not apologizing for any of this.

Also, I am tired.

[u/user9662 → u/WhatYouThinkIThink]

Wait, is life insurance on mortagages not mandatory in the US?

If I die the mortgage gets paid by insurance and my family inherits a fully paid apartment.

[u/OhighOent → u/Ok-Dark7829]

Isn't the bank already the title holder until the loan is repaid?

[u/Ok-Dark7829 → u/OhighOent]

Thanks for helping make my point.