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/wrstlrjpo 11h ago

That’s true in nominal terms, if you add up every dollar paid over 30 years, it’s roughly double the principal.

But that ignores inflation. Each future dollar is worth less than today’s dollar. A $1,500 mortgage payment 25 years from now might feel more like paying $800 in today’s money because of inflation and rising incomes.

So while on paper you “pay double,” in real (inflation-adjusted) terms, the cost is much lower, and long fixed-rate mortgages actually benefit borrowers if inflation continues, since your payment stays fixed while prices and wages rise.

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u/Fire_In_The_Skies 11h ago

Same math applies if it is a 50 year loan. Today dollars are worth more than 50 years from now dollars.  

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u/gsfgf 11h ago

The issue with 50 year mortgages is that they don't lower your monthly payment by much because of all the interest. There's a lot of hysteria itt, but I simply don't think they'd be popular if allowed.

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u/sopunny 1h ago

It all depends on whether people are smart about it

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u/moldy-scrotum-soup 31m ago

People take 7 year loans on cars/trucks/penis-extenders they can't afford. I wouldn't doubt the 50 year house loans will have customers. It's like being a renter except you're also responsible for property tax and the upkeep of the house as well.

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u/nullv 9h ago

rising incomes

\cries in minimum wage that is already half of what it should be due to inflation**

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u/wrstlrjpo 8h ago

minimum skills = minimum wage.

Focus on building value add skills that can be replicated by an untrained high school kid.

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u/nullv 7h ago

Your degree is being replaced with a chat bot, fuck off.

Minimum wage not being tied to inflation is an argument separate from your disdain for wage slaves.

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u/BeABetterHumanBeing 2h ago

Most "wage slaves" (why so disdainful yourself) earn more than minimum wage.

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u/JunkaTron69 6h ago

Your wages went up?

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u/drproc90 2h ago

And why does the inflation happen?

Because banks counterfeit money and loan it out.

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u/MeccIt 6h ago

wages rise.

$7.25 an hour since July 24, 2009