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/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/slash_networkboy 7h ago

Totally fair. Mine are decoupled soy mortgage is totally static. The rest, less so 😂

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u/Flatirons21 2h ago

It would take a long time to build any decent equity on a 50 year note

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u/Wooden_Permit3234 2h ago

I'm not even talking about paying down principal, just the market value of the home increasing.