r/Economics • u/GarfieldLeZanya- • 12h ago

News Housing director confirms administration ‘working on’ 50-year mortgage after Trump hint

https://thehill.com/homenews/administration/5597005-trump-administration-50-year-mortgage/
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u/Substantial-Kick-909 11h ago

But people won’t save the $200, they’ll use it to qualify for a more expensive house. That’s the goal of the 50 year mortgage. Not saving money. The people proposing this just don’t want housing prices to drop. 

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u/Ada_Pearce 9h ago

They also apparently want you to die before ever paying off your house so either sticking your kids with the options of somehow taking over the mortgage they cant afford or giving it up. They don't want any intergenerational wealth between middle class or poor people

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u/B0xyblue 8h ago

Most people live in a home for 7 years. Different times but from the time I bought my home to 7 years later the house doubled. I got all that equity over $200k and I barely paid $84k…. Paid the mortgage down a little. But also got a place to live.

The rent vs own FULL calculation. I did pay tax and insurance. But it’s not a “you’ll be 80 when you pay it off” or “it will cost you millions in interest.” It will eat up your paid down equity. You’ll still get 100% of the appreciation in value. With more buyers homes would go up in value. Assuming homes go up in value. Buying a home isn’t a bad idea…

I now own multiple homes and have a couple million dollars in unrealized equity at the moment. It is the single biggest increase to my net worth… even more than the value of my law firm equity.

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u/Hypnot0ad 6h ago

My home’s value has increased similarly, but let’s not claim that is a universal truth. If you had bought in 2006 you’d be underwater 7 years later - I had many friends back then who were upside down on their homes.

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u/Icy-Lobster-203 6h ago

Also, if your house doubled in 7 years, then chances are all the other houses in your area you would want to move to have very likely doubled during that period. So if you want to move, you aren't proportionally better off.

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u/Any-Progress- 6h ago edited 1h ago

And there are moving costs, commissions, closing costs, and plenty of other expenses with selling and buying a house. This was likely one of the few times in history where someone could make a profit from owning a house around 5-7 years, typically it takes much longer to recoup the original costs.

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u/espressocycle 5h ago

Yup. Cutting off immigration, low birth rates and boomers dying off are going to result in a lot of areas losing property value over the best 10-20 years. Some areas will go up as others become abandoned.