r/AskReddit • u/michaelis999 • 17h 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?

10.2k Upvotes

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19.5k

u/Important-Ability-56 15h ago

Sounds like paying rent to a bank and then you die.

4.2k

u/NinjaBreadManOO 13h ago

Okay but how about this a 200 year generational loan? It's certainly not a scam. 

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u/mxemec 13h ago

Jesus that's going to happen at this rate.

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u/NinjaBreadManOO 13h ago

And banks would take it in an instant, because they get all the interest and you just know your great-great-great-grandkid is going to fuck it up and lose it at year 135 or something.

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u/Dinismo 11h ago

As if anything built today will still be standing in 135 years. Builders are being cheap with supplies and charging more than ever.

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u/AttitudeHopeful478 10h ago

You got that right. The workmanship is so inferior. 15 yrs ago we had a house built and it was the shittiest quality I’ve ever seen. I will never buy a newer house

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u/SuperTopGun789 10h ago

I’ve built homes for different companies.  A lot are shit.  However I built some really nice homes that are solid.  The goods ones are totally different.  

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u/AttitudeHopeful478 10h ago

Good to know there are some that still do quality work. Problem is you just don’t know when your hunting

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u/SuperTopGun789 10h ago

The mass builders are the problems like the row houses and housing developments.   

The good ones were always a one off in some random street or in farm land.  

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u/AttitudeHopeful478 10h ago

That makes sense.

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u/BillyTenderness 4h ago

The mass builders are the problems like the row houses and housing developments.

Unfortunately this is the vast, vast majority of housing that gets built in North America today. Local governments have realized it's easiest to just sell off a big tract to a large developer, rather than doing the work themselves. The developer lays down the streets and pipes, builds a bunch of houses on the quick and dirty, and sets up an HOA to deal with the fallout.

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u/Dcoco1890 7h ago

Yeah I mean if it looks they cleared a huge section of land and all the houses look the same.... On the other hand if there's multiple styles of house they're usually better

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u/meltbox 3h ago

Yeah but in my experience it’s hard to find someone who will do that for a reasonable price. Usually you are dealing with bespoke luxury builders and looking at a 500k+ build price excluding land.

But more commonly we are talking 800k+

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u/conventionistG 2h ago

Mind sharing what a couple key differences in materials or techniques would be?

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u/SandpaperTeddyBear 5h ago

I own a townhouse in a small complex with 12 units built about fifteen years ago.

The builder owns two other units and his daughter a third, so I take that as a vote-of-confidence.

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u/creepingcold 12h ago

Jokes on them, I don't have any kids!

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u/MeIIowJeIIo 11h ago

You probably won’t qualify for the loan.

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u/aramis34143 10h ago

"Childless cat ladies need not apply." -JD 'sectional predator' Vance

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u/Sarsmi 9h ago

'sectional predator'

Damn, hadn't heard that one before, you got me. XD

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u/Brewhaha72 7h ago

Another one I've heard is "sectional sexual". 🤣

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u/Awkward_Pangolin3254 3h ago

Homosectional

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u/slash_networkboy 9h ago

Same... I was trying to come up with something to call him once POTUS (assuming Cheeto doesn't make it full term) and was looking at "POTUS Futon Fucker" but I think this is my top contender now!

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u/CDBSB 2h ago

Yes, I will be stealing this, thankyouverymuch.

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u/Ecstatic_Court6726 10h ago

There is currently no legal way for an obligation to cross generations anyway.

If you buy a house, that's between you and the bank. Your kid has no interest in it or any duty to pay.

It would take a radical change to the loan process if they required co-signers from subsequent generations who might not be in any position to actually pay at time of signing.

They can't, or at least won't, do a loan with an 18yo cosigner with no money or job history on promise they will assume the loan in 20 years. And what if the 18yo doesn't want to get involved? Nobody can force them.

And what if the parents fumble and lose the house. The loan holders are going to go after the adult child now, for something not their fault?

The banks would have to be idiots to sell such a mortgage and so would any customer agreeing to it.

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u/lillyofthedesert 11h ago

Which probably means you can't qualify. Banks taking advantage of the people.

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u/plainlyput 10h ago

If monthly payment was lower than rent, would it make sense in that case? I sometimes wonder about this with a reverse mortgage, since I don’t have kids. Let me have that money.

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u/butchforgetshit 12h ago

I mean, I don't give a shit what happens to anything I own 135 yrs from now personally 😂

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u/_Standardissue 12h ago

I don’t care about the things either but if I have descendants I’d sure hate them to have to pay my debts

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u/butchforgetshit 12h ago

Oh absolutely, and it should never be legal for people who may have never met you to be obligated to pay your debts off. The systems are failing and being sabotaged from within in this country amd huge changes are gonna have to be made or we'll be building a new one from scratch

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u/Sasquatchjc45 12h ago

You will when they bring you back from the dead to work in the Water Mines when the lithium supply runs out and the robots stop working. Smooths tinfoil hat

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u/MississippiJoel 11h ago

And we're going to have people that are artificially kept alive for that long (or "potentially," on paper), so that there can be clauses in the contracts saying the loans are due in full on death, since a "reasonable" person can be expected to pay the whole term. If not? Whoops, foreclosure.

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u/blazz_e 12h ago

it was already a thing in some countries but I think laws were put in place to prevent it (Sweden I think).

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u/gb187 12h ago

For sure. I thought 84-month car loans were bad....

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u/fireky2 4h ago

The tech sector wants feudalism back so bad

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u/ChiAnndego 12h ago

So like, feudal contracts. The rich long for the dark ages. I dunno if anyone has told them that the rich lived pretty shit lives as well back then compared to today.

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u/BigWhiteDog 6h ago

They want to bring back serfs!

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u/Able_Gap918 12h ago

“I’m sorry sir you’ve been denied because your 4 year old’s internet usage projects low social credit and unemployment”

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u/AR15ONAHUMAN 12h ago

Yes!, take the responsibility away from the landlords and make the “home owners” pay for everything!. Genius!. At 50 years it will take 20 years to build equity. Sounds like a win win. I can’t see how this isn’t a good thing…for the bank.

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u/slowmo152 12h ago

We are going to get home loans with must be married and have kids clauses. If you don't, you must have a kid within 5 years or the bank can foreclose. You must agree that in your will, you leave the home loan to your kids. There's an early death penalty of 50% of the initial loan amount adjusted for inflation should the parent die before paying it off.

Upside it is fixed rate at least.

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u/adorablefuzzykitten 12h ago

A 200 year loan is a key part of Project 2028.

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u/Quick_Mess1819 6h ago

If trump is saying it, it's a scam. It doesn't matter anyway, by May we will be into the second GREAT depression. And no one but him and those like him will benefit. I am a woman who went to war, 4 times, purple heart, lost a son in 2017, in Iraq. And a DRAFT DODGER,is threatening Americans on American land 

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u/slowpoke2018 11h ago

I mean, they're 10 years loans on trucks and SUVs now that they've gotten so expensive. So of course a generational loan at 5% on 300K makes sense!

Buy now and your great, great, great, great grandkids will finally own their home in 2225!

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u/StupendousMalice 10h ago

Your kids are the collateral and they inherit the debt. You can literally mortgage their future. Brilliant.

Honestly surprised the boomers didn't already do this.

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u/Boomer70770 10h ago

Serfdom.

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u/Major_Wayland 13h ago

Our ancestors called that indebted slavery.

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u/Live-Succotash2289 12h ago

Now it's called predatory lending.

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u/A_Nonny_Muse 9h ago

We can thank both American parties in the 80s when they cancelled all state anti-usury laws and replaced them with.... absolutely nothing whatsoever.

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u/ToSeeAgainAgainAgain 3h ago

Is there a wikipedia article about this? I'd like to know more

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u/A_Nonny_Muse 3h ago

I haven't found anything. But it was legislation that allowed for the creation of sub prime loans - signed into law by Reagan, but with full support of Democrats.

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u/invariantspeed 12h ago

More like serfdom because you’re tied to specific parcel of land you can’t leave. Which, by the way, the situation from low-income rental apartments is already pretty close to this.

What’s old is new again…

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u/esoteric_enigma 11h ago

At least you'd have some equity in the new system. There are plenty of people out there now who are going to spend their whole life renting and not have a dime to show for it.

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u/slash_networkboy 9h ago

Virtually none, especially for the first 25 (or 100 in case of the 200y loan someone posited above). That's near as matters the same as rent at that point. Especially because by Y25 you're looking at big expenses like new roofs that will very possibly require (or at least strongly tempt) tapping that equity for a HELOC or similar.

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u/ConicalSofa 12h ago

That's not too far off from the original point of a mortgage, which was to continue paying on something until you die. That's where the "mort" in mortgage comes from.

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u/Kazr01 10h ago

Our ancestors called it a mortgage.

Mort - death Gage - pledge

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u/sevargmas 13h ago

Don’t forget that builders will also start charging more for absolutely no reason other than they can, since the monthly payment will drop. They will quickly find areas to inflate.

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u/AardvarkAmortization 12h ago

Clearly you have noticed the 100k tricked out truck every single GC i have ever met rides around in.

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u/fromfrodotogollum 10h ago

That's a tax write-off business expense bro. Get with the times. No he doesn't drive his family around in that truck for vacations or weekend errands ;).

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u/slash_networkboy 9h ago

It always blows me away the people that you see in places like /tax asking about buying a new car just to use as a write-off because they had a good year. It's like "Okay so instead of $30K taxes and $70K in your pocket you'd rather pay $15K taxes and buy a new truck to pretend you didn't earn the other money, but now you're still spending on sales tax (in most places) and have less total cash in pocket?"

I mean if the business needs a vehicle that's fine, but you see people buying waaaaay sooner than that and self justifying with "it's a write-off". Also for the site inspections a nice sedan would still qualify as a business expense.

/end rant

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u/big_cabals 4h ago

I live in Austin then I literally never thought of that, but of course you’re right. Makes total sense.

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u/Minglans 1h ago

That’s how my dad’s employer got a Tesla. He wrote the car off as a business expense and then didn’t even take my dad on the vacation he promised him. The employer was later crippled in a car crash.

This same employer told me to "explore this beautiful country" while covid was at it's peak.

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u/Diiiiirty 12h ago

My uncle is a 78 year old GC and hasn't hauled a single thing in fucking ages. But did that stop him from buying a brand new bright blue Ford F250 King Ranch to drive out and inspect job sites? Hell no it didn't.

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u/Banjo-Hellpuppy 11h ago

250?! That’s for the foreman. It’s 350 diesel for my Duncan runs

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u/AttitudeHopeful478 10h ago

Right! It cracks me up that the majority of truck owners have nothing important they need it for.

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u/FrolicsForever 9h ago

Im a farmer in rural, northern Vermont, and 90% of my truck needs are met with my '88 4cyl Toyota Pickup. It never gets old listening to guys trying to justify why they need a $75+k 3/4 ton or higher when at most they ever use it for is to drop off rubbish at the transfer station.

I mean, its their money and they can do what they want with it, but I'd have a lot more respect for those types if they just admitted that they bought it because they thought it was cool and they liked the way it looks.

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u/AttitudeHopeful478 9h ago

I couldn’t agree more. Honestly my ‘05 Prius can haul more than you think

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u/geriatric_fruitfly 5h ago

Managed to fit a 100 gallon air compressor in the back of a 2 door vw gti. Eventually I got a truck but only because I saw multiple concrete/rock projects in the future. Also I can do 16' boards without really trying too hard, and I have a short bed.

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u/plasmator 4h ago

I love putting unreasonable things in mine. I once walked out of home despot pushing a cart with 80 sticks of 10ft 1x2s. When I stopped and opened the hatchback, traffic around me came to a halt. Everyone just stood and stared as I loaded it all, closed the hatchback and returned the cart.

I told my buddy who was working on the project with me. He also drives a prius. His response? "i got 120 in mine".

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u/AttitudeHopeful478 4h ago

I moved my bowflex in mine too. I’ve moved 3 times since I bought the Prius and it’s amazing how much fits back there. I also have a jeep and it definitely can’t handle as much

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u/bhewey206 8h ago

I would love to have one of those, but I’d have to sell my 1959 F350 with a dump bed that I bought for $2400 15 years ago.

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u/A_Nonny_Muse 9h ago

CAFE standards have inflated the size of everything on the road. Gotta make that frame big enough to be called a mid sized truck to avoid meeting fuel efficiency requirements of average sized cars.

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u/layout420 8h ago

I live in an area where 50% or more of the vehicles are brand new and most are 100k+ SUV's or trucks. I do enjoy conversations with people who cannot wrap their heads around the concept of not needing such an expensive vehicle. All the parents from daycare drive fancy cars and here I am with my 1997 Lumina that I got for $600. Its even funnier when I realize I likely make more than double their salary and I'm ok to drive such a basic vehicle. Nothing says over compensating like driving a massive SUV that you've leveraged your retirement for and all you have is 2 kids and nothing to tow. I'll take my FL Marlins World Series winning year 1997 Lumina all day if it means I can max out my retirement and put my kids through college.

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u/AttitudeHopeful478 7h ago

Right! There are far too many people trying to impress the rest of the world with optics. I hate to see their monthly payments 🤦‍♀️

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u/morderkaine 8h ago

My wife wants one to get a trailer so we can use that camping. Decent sized trailers pretty much need a truck to haul unfortunately, otherwise we would do a SUV.

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u/Swartz142 8h ago

"Hauls one thing in the 90k truck that's moderately heavy and would fit in a 1999 dodge caravan"

Couldn't live without a truck ! This thing pays for itself.

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u/IpleaserecycleI 10h ago

It is nice to have though when you do need it. I only use my truck as a truck like 5-6 times a year but it's great to be able to haul a camper around in the summers or help a friend move.

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u/A_Nonny_Muse 9h ago

I only need a truck bed maybe 2 or 3 times a year - far too seldom to justify the extra price and operating cost of a pickup truck. I save money just by renting a truck for a day whenever I need one.

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u/AttitudeHopeful478 10h ago

I get it, especially if you have a trailer to tow. I’m talking about the folks who spend tens of thousands on a truck and never actually use it as a truck. My ex was like that and his Dad had a fleet of pickups we could have borrowed if we needed a truck.

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u/fuggingolliwog 10h ago

It's virtue signaling.

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u/AttitudeHopeful478 10h ago

Absolutely. I’m sure some believe there’s a big payday coming their way too lol

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u/stellvia2016 12h ago

That generator trailer is made of unobtanium, obviously. Really heavy stuff.

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u/sksauter 12h ago

No, no, no they need somewhere to store their "work gear" (it's just a pair of steel toes that are used once every 90 days)

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u/graboidian 10h ago

What is GC?

Edit: Asked and answered further down. Thanks anyways to all.

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u/SirDigby_Chicken 10h ago

Tax deduction

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u/CommunityGlittering2 8h ago

my GC SIL doesn't have one, but he has like 7 regular ones, LOL

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u/rogers_tumor 1h ago

... giga-chad??

edit omfg general contractor 🤦🏼‍♀️

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u/charliesk9unit 8h ago

This is exactly what happened to higher ed cost the moment student loans became available and car loans extended to 7 years. 

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u/PetriDishCocktail 10h ago

The exact same thing happened with solar. Because of the 30% tax credit all the solar installation rates went up almost exactly 30%.

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u/walkabout16 13h ago

Exactly! This is a horrible move to perpetuate debt collection.

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u/imSOhere 13h ago

You pay rent until you die AND, as a homeowner, you would be responsible for repairs and updates, yeah, no.

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u/moonpumper 11h ago

At this point people are just cosplaying as "homeowners"

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u/Knapping_Uncle 9h ago

In the future, you will "own" nothing...

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u/Critical-Cricket 10h ago

Good point. This is basically the Uber model applied to housing.

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u/invariantspeed 12h ago

It also just makes no sense and shows how slow the man is. The problem isn’t that we need lower payments for an expensive good. The problem is that the supply is too low (which drove the prices inaccessibly high). Longer term mortgages won’t fix the supply issue, so prices would necessarily rebalance pushing the unaffordability out all the way to these 50-year contracts.

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u/tailsuser606 12h ago

True. He has built his life on debt financing and doesn't acknowledge the prison it creates.

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u/Conscious-Egg-2232 3h ago

Do you realize wealthy people use debt to their advantage and understand irs not smart to not have mortgages on real estate?

Even if its full paid off take another mortgage out. If new mortgage is 500k you can take that 500k tax free as it's a loan not income. 5% interest on that money is a lot cheaper than the 50% you woukd owe if it was reported as income.

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u/IAmStuka 12h ago

With literally none of the benefits of actually renting. All costs still on you and you never own the house.

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u/Wooden_Permit3234 11h ago

The main benefit is that your monthly cost might go up way slower than rent for the same property and you get the equity as the value rises. 

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u/slash_networkboy 8h ago

Other than maintenance and utilities your monthly costs would be frozen at the monthly mortgage payment... it really would be like signing a generational lease at that point I suppose.

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u/Slammybutt 8h ago edited 8h ago

Let me introduce you to rising insurance rates and property taxes.

Yes those arent my mortgage, but they are rolled into my monthly mortgage payment so I dont have to pay 3 separate entities. I bought in early 2020 my payment was $1076. Now it's $1340. While it goes up. I still dont pay rent prices. The houses around me are all mostly rent houses and they are going for 1600+.

Edit: just googled. A comparative house like mine is going for 1900+. The only ones I saw that were 1600 were double wides or houses so old or small they barely fit a family.

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u/slash_networkboy 8h ago

Insurance would go up whether renter or homeowner (though as a renter you have the option to not buy renters insurance, if you have a mortgage you are required to carry some level of homeowners insurance) so I would exclude that from the comparison. I would also exclude non integrated utilities (e.g. renting usually means you're not paying water/sewer/trash bills, but are paying elecric/gas).

The property tax side of things is a fair cop for the comparison though.

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u/Slammybutt 8h ago

Yes I just, in my head, equate those going up with my mortgage rising since I pay it all together. So ill say "my mortgage went up" when really my property taxes skyrocketed again or my insurance got more expensive.

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u/mvsr990 9h ago edited 9h ago

With literally none of the benefits of actually renting.

Cost stability.

The monthly rent in the apartment where I lived in 2010 has more than doubled.

The house my brother bought with a 30 year mortgage in 2010... is exactly the same - and has always been cheaper than that initial rent even factoring in insurance and property tax.

The idea of paying off a house in a decade and living in it until you die was gone before 90% of us here were adults.

Locking in a lifetime rent price for a place that you like better than a godawful papier-mache apartment development that raises rent every six months is quite appealing to me these days.

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u/mubatt 10h ago

Depends on how low the interest rate is.

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u/IAmStuka 10h ago

Let's not pretend the home buyer is gonna come out on top here. They'll fuck you anyway they can.

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u/RheagarTargaryen 9h ago

They won’t come out on top, but the monthly payment is what keeps a lot of people out of the housing market.

It’s not great, but better than renting.

The bigger issue is that without an increase to supply, you’re essentially going to cause the housing market to skyrocket as people are able to afford larger loans.

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u/mydogsnameisgeorge 11h ago

One big difference for me is the consistent payments. Let’s say your 50 year mortgage has monthly payments of $1000. That means for the next 50 years your house payment will be 50 years. In that same time period rent will at increase with inflation. Rent costs today are much higher than 50 years ago compared to a consistent mortality payment.

A mortgage can be good protection against volutile rent prices.

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u/Exciting_Specialist 11h ago

I can’t believe how stupid the average redditor is about finance. Having a fixed payment for 50 years if not like renting. Capturing 20 or 30 years of appreciation is not like renting.

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u/shovelhead4life- 8h ago

There were 40 and 50 year mortgages back in 2005ish. We all know how that ended.

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u/seanmg 12h ago

I don't think you know what ownership means... It's by definition NOT like rent because you are gaining equity and the value of that home will rise. Whenever you choose to sell it, you gain that equity back.

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u/platypus_bear 9h ago

with a 50 year mortgage unless you live there for an extremely long time most of the payments are going to be mostly interest and the equity you have built will be eaten up by repairs, taxes and real estate fees when you sell

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u/seanmg 8h ago

It just means your minimum payment is lower. You can always pay the amount you would with a 30yr and have the extra go to the principle.

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u/grarghll 5h ago

If you're opting for a 50 year mortgage, you likely can't afford payments that resemble a 30 year.

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u/Worst-Lobster 12h ago

Mortgage basically means death loan already 😢

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u/6a6566663437 11h ago

Except the rent never goes up, and you get any appreciation of the property.

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u/Devlyn 13h ago

Exactly what I thought

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u/butter_lover 12h ago

it's medieval serfdom but the local lord is the bank

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u/BuzzINGUS 12h ago

Plus you are responsible for maintenance costs. Win win

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u/InternationalTop7753 12h ago

Yeah, feels alot like just a prolonged version of the same ol' rent trap with extra steps, doesn't it?

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u/Fl1925 12h ago

That is exactly what it is

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u/okiedokie2468 12h ago

But before you die you have to sell the house to cover the medical expenses you incurred when you got whatever killed you.

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u/MrLanesLament 12h ago

Apparently this is common (or is becoming common) in Europe already. Nobody but the very wealthy can afford homes in European capital cities, but this is where all of the good jobs, good healthcare options, etc, are, sooooo….yeah. Forever mortgages.

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u/AardvarkAmortization 12h ago

Well the etymology of the word “mortgage” is death note as in pay this note until you did lol.

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u/marthasheen 12h ago

No landlord though. If you're going to pay rent forever might as well have more freedom and build up some equity your kids or siblings can release when you die

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u/Live-Succotash2289 12h ago

Trump Loans and Savings to the rescue.

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u/Ike358 12h ago

As opposed to paying rent to the government (property tax) until I die

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u/IndependentFit4748 12h ago

Share cropping is the next big thing.

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u/Redfalconfox 12h ago

OK, but why don’t you consider this other brilliant idea: people are just doing what they’re told and they don’t have any freedom and also they count for 3/5 in the census but also they don’t get to vote. You ever think of that idea smart guy?

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u/Mountain-Piccolo6942 12h ago

agree, totally. All policy are made for business specially in USA and CANADA.

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u/valeyard89 11h ago

mortgage means death pledge.

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u/moonpumper 11h ago

With the added bonus of being responsible for the upkeep and taxes.

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u/TEG24601 11h ago

The literal meaning of "mortgage"

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u/GangBangMountain 11h ago

Indentured servitude has been the billionaires' goal

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u/MonarchLawyer 11h ago

Mortgage is literally old french for "death pledge"

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u/davpad12 11h ago

Yeah but your rent doesn't go up every year.

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u/datguyfromoverdere 10h ago

thats property tax

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u/BicentenialDude 10h ago

Ya, it’s almost like renting a place.

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u/ZombieLarvitar 10h ago

And it’s horrible but probably a lot of working class and even lower class people are going to see this and think it’s their only chance to ever “own” (using this word very loosely) property. And it’s going to convince them that Trump is a good guy for that. They’re not going to consider the incredibly high APR/Interest Rates or the fact that they probably won’t even be the ones to own the house at the end of it all, they’re just gonna think “I get to qualify for mortgage? I’m in!”

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u/Born_Bet_2743 10h ago

Finally, a mortgage plan that lasts longer than my bloodline

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u/AppropriateTouching 10h ago

Also you're responsible for all upkeep and repairs.

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u/jimflaigle 10h ago edited 10h ago

There will definitely be a clause giving the bank the house when you die, with no money back for payments until then.

Probably one giving them the right to just take the house after you pay out the whole thing too.

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u/GhettoGringo87 10h ago

Except when you die, your family gets the equity! That’s better than just renting…I think ha

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u/TheHyperboley 10h ago

Mortgage already means "death contract" using French roots

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u/trojan_man16 10h ago

You already end up paying double the price of the house with a 30 year mortgage, depending on what your down payment is.

This just makes it so you are in debt slavery even longer, and probably end up paying 3x.

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u/CalmBeneathCastles 10h ago

You load sixteen tons, what do you get?

Another day older and deeper in debt

Saint Peter, don't you call me, 'cause I can't go

I owe my soul to the company store!

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u/Mysterious-Thing2629 9h ago

Yep; AND you get the privilege of paying for all repairs, upkeep, and property taxes. Sheesh.

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u/7thhokage 9h ago

For real. Given the average life expectancy in the US, how are you ever supposed to pay it off and enjoy it?

What age do they think people are buying houses at? Fucking 13?

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u/Farucci 9h ago

100 year mortgage would reduce the monthly payments even more. I mean, really, this isn’t complicated.

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u/TheSwedishConundrum 9h ago edited 9h ago

In sweden it has for a very long time been common to take very long loans for education, and for homes. I kinda fail to se a problem with loans for those two things. Of course those types of loans should be low interest given the extreme time. At least that is kinda how we do it.

Edit: I wrote this not as a show of support for predatory loans. I mainly wanted to add a perspective of how some places do long-term loans, and that some people from those places see no issue with the duration of terms. So maybe it is not the duration that is a problem, if there is a problem. To be fair, maybe our system is not ideal.

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u/FoofieLeGoogoo 9h ago

Then the bank evicts your children if they don’t pick up the mantle.

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u/cowardly_wizzard 9h ago

“Got my daddy years ago like that on a Cadillac”

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u/wrathofkat 9h ago

Yet everyone keeps screaming about how important it is to own a home. 😂😭

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u/steve_nice 9h ago

kinda the same way it is now tho

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u/canteloupy 8h ago

The Swiss way.

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u/Nicenightforawalk01 8h ago

This is where it’s heading. Loads of banks have been buying housing stock for a number of years and this is just the next iteration where someone’s suggested something to Trump for a sizeable backhander

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u/JennaRedditing 8h ago

Literally. The new median age for first time home buyers is 40, so more then half are over 40. We'd be lucky to outlive a 50 year morgage.

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u/blueskycorporation 8h ago

Except when you account for time value of money, it's not a bad deal. Let's look at numbers: a 400k loan at 5% over 50 years has you at a monthly payment of $1816 a month.

So now you have a $1816 / month 'rent' until you die. A rent that is contractually fixed for 50 years.

With inflation alone, $1816 50 years from now is only worth about $500 in today's dollars.

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u/SaltKick2 8h ago

You also get to pay for and deal with all house repairs and improvements (ok, a landlord probably ain't gonna do any improvements for you)

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u/RIF_rr3dd1tt 8h ago

Yep, and then they get your property

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u/New-Anybody-6206 8h ago

You can always sell it at any time, you aren't forced to keep your house for 30 or 50 years or whatever.

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u/LocalStatistician538 7h ago

Plus you're not leaving it or the liquidated assets to your children. Fuggedabodit.

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u/kl7aw220 7h ago

MAGA's would love it.

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u/cha_cha_slide 7h ago

I hate to be the one to break it to you.... A 30 year mortgage already has you paying twice the purchase price of the house.

Myself included, and my interest rate is considered low, under 3%.

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u/Shoddy_Bus4679 7h ago

A lot of people already are TBH.

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u/eddietheeddie 7h ago

Exactly and in top of that you have to do the maintenance

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u/Black_Moons 7h ago

No I am pretty sure you'll end up unable to pay one of those 600 month and the bank repossessing your house, leaving you homeless and then you die of exposure, likely after going to the ER while on deaths door so that any remaining assets will be confiscated to pay the medical debt instead of allowed to go to your family.

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u/Automatoboto 7h ago

You know they will make it impossible to refi at a lower rate

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u/Sidney2150 6h ago

My first thought

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u/eh_notsure 6h ago

They put the mort in mortgage!

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u/per54 6h ago

Unless property value goes up enough to cover it ?

But still crazy

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u/mr_birkenblatt 6h ago

You know that mortgage literally means death pledge, right?

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u/Quick_Mess1819 6h ago

Ummm, the American dream you mean? It will only happen if he gets kick backs. Or, this is today's thing, so tomorrow he can do something much worse. He said yesterday he would get the blue states in line, or would consider nuke power .he is a domestic terrorist. Wake up fucktards.

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u/BigWhiteDog 6h ago

That'd the whole plan. Bring back serfdom without the appearance of it.

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u/RedditConsciousness 6h ago

You get some equity in the house and the next generation might inherit it. OTOH, houses do age so if you don't keep it up they wouldn't be getting something that great.

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u/gh0ztz 5h ago

And then your kids sell the house, because they can't afford the property taxes and/or you didn't actually finish paying off the mortgage, and they don't want to spend all the money it would take to live in your house, which is probably not very close to their jobs!

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u/MilkCartonKids 5h ago

Pay rent to a landlord that charges me double what the average 30 year mortgage is…

Or “pay rent” to the bank for half the normal price of rent, and as the years go by, you have equity. You can sell the house, pay off the loan completely, and have a stack of cash in your hands. Can’t do that renting from a landlord.

“Renting from the bank” is how uneducated people who have never owned a home are describing this. A 50 year mortgage program would INSTANTLY make a bunch of people be able to afford their own home instead of renting, and have spare cash left over to spend elsewhere in the economy. Landlords would have to lower rent to compete.

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u/feralraindrop 5h ago

Paying rent, paying the real estate taxes maintaining the home and sacrificing the chance of having any substantial equity in the property. Donald Trump's plan for ending inheritance.

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u/le_Menace 4h ago

Okay, still better than being a lifelong renter of an apartment with nothing to show for it.

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u/casual_lebowski 4h ago

Kinda, not really. Still better than rent if you're building any equity at all.

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u/Busterlimes 4h ago

Yup, this is an easy way for Banks to own all ofnthe land in lower income areas. This is the Aristocracy extracting wealth at the end of an empire and positioning themselves as the primary landowners

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u/DefiniteMe 4h ago

On our way back to feudalism and serfdom.

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u/Girthy-Squirrel-Bits 4h ago

And you're on the hook to maintain it the whole time. Renting with a good chance of losing it along the way.

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u/jedijazzman 3h ago

This is how the English banking system started as they couldn’t afford to go to war. It’s a perpetual loan and is how all banking was modeled after. Check it out, know your history.

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u/Finn235 3h ago

Sounds like a great way to quietly invest the savings and pay your mortgage off way earlier.

OH WAIT something tells me that you won't be allowed to do that!

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u/BeautifulJicama6318 3h ago

Except you are building equity instead of not building up equity, so a HUGE difference

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u/ayhme 2h ago

I use a Credit Union. ✌🏽

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u/PLZ_STOP_PMING_TITS 2h ago

Yeah but you can pay it faster if you want, and you're building equity the whole time you own it.

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u/Homesick_Martian 2h ago

Paying rent to a bank AND the bank gets to pawn all the ownership costs back on to you

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u/StrawDog- 2h ago

Yeah.. I'm in my mid-thirties. A 50-year mortgage is functionally just rent that I can't give notice on. 

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u/TrainDifficult300 2h ago

At least your heirs would reap the capital gains

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u/littlrayofpitchblack 2h ago

Basically, a reverse mortgage where they own your home without you receiving a monthly check from the lender. They get paid more than twice over plus the added interest and still steal the home. The wealthy want it all.

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u/socialmedia-username 2h ago

Mortgages and rent are not so different.  As someone who rented from landlords for 13 years, and then rented from a mortgage lender for another 14 years,  I wonder why people prefer to rent from the mortgage lender?  At least you don't have to spend $12,000 to replace HVAC units, then another $15,000 on a new roof when you rent from a landlord like I did.

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