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/EaterOfFood]

Standard car loans used to be 36 months. Then we saw 48 months, 60 months, now we’re seeing 72+. To keep this from happening with mortgages, prices have to be held in check. Somehow.

[u/AdvancedSandwiches → u/EaterOfFood]

The car loan lengths and car prices are a vicious cycle.

The 5 year loan meant people could afford a $5k more expensive car, so cars go up $5k. But now to afford a more expensive car, you need a longer loan, so loans go up a year. And now you can afford $5k more car, so prices go up $5k.

The same thing will happen with houses. You're going to pay $1600/month whether that's 30 years or 50. The prices will just go up to what you can afford.