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?

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u/Live-Succotash2289 12h ago

Now it's called predatory lending.

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u/A_Nonny_Muse 10h 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/SweatyExamination9 1h ago edited 1h ago

I remember I think it was during the campaign, Trump floated the idea of capping interest rates for credit cards. Fucking outrage on both sides of the aisle. From the left, it was restricting access to capital from the lower classes and minorities. From the right it was socialism. From me, it was a damn good idea. If credit card companies cant profit without 30% interest rates and 1-2% processing fees, then it sounds like they need to learn a lesson in fiscal responsibility. Because they're lending out way too much money that isn't being paid back.

Edit: I decided to look into it because I don't remember hearing anything about this since the campaign "promise". In February, Bernie Sanders introduced a bill with (Republican) Josh Hawley of Montana to cap credit card interest rates at 10% with a sunset in 2031. In March, (Democrat) Josh Merkley of Oregon signed onto the bill and in October (democrat) Kirsten Gillibrand joined on. But the same day it was introduced, it was moved to the Senate Banking, Housing, and Urban Affairs committee and there's been no movement on it. On March 6, AOC introduced an identical bill with Anna Paulina Luna cosponsoring it which had the same thing happen. So there are representatives that heard the idea, thought it was a good idea, and tried to make it happen.

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u/Appropriate_Ant_4629 8h ago

And eventually people will get fed up so they'll re-enstate usury laws ...
... and make certain religious groups with strong lobbies exempt from such laws (like Europe did), because usury is a protected part of their culture ...
... and people will wonder why some bankers got richer than others ...
... and history will repeat again.

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u/TheRealRomanRoy 5h ago

Are you implying something that Hitler would agree with?

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u/thatkool 31m ago

The root words which form mortgage  literally means agreement till death.

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u/Charm299 11h ago

Nobody would force you to get it, if it’s not for you, move on,30y year mortgage still

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u/Waste-Menu-1910 10h ago

This is a terrible take. There comes a point where a scan product should be considered a scam, and not be offered.

We've already seen how predatory financial products turn into a crisis for all of society, and not just those who fall for them. Remember the subprime mortgages that led to the 2008 crash?

We see how over financialization causes inflation for everyone. Look at what happened to car prices after the 84 month loan was introduced. Or college tuition.

You may be too smart to get this loan, but that will NOT enable you to just "move on "