5Oyr mortgage option for drivers?

[Over70irregs]

Not sure of pro/cons. With rates high and homes out of reach. Will 40 or 50 yr mortgages be offered to kick monetary policy down the road? Even with prices currently falling?

https://www.ftadviser.com/mortgages/2022/07/04/are-50-year-mortgages-a-good-idea/

 

[rod]

I had a mortgage once (1972-1976)----for about 5 years. There was also a time when I had a car payment (about 1966)--for about 6 months. Never again.

 

[SorryLazyPOS]

I had a mortgage once (1972-1976)----for about 5 years. There was also a time when I had a car payment (about 1966)--for about 6 months. Never again.

Yeah but your house was probably like 1/3 your income.

 

[scratch]

When I built my first house in 1984, the mortgage rates were 13-14%. That house cost $75K to build and is now worth $250K. The one I'm in now cost $326K to build two years ago and today it's worth $450K. I did take out a loan for half the cost and I locked in at 2.99%. My principal is $397 a month and I pay an extra $500 a month so I will pay it off in less than half the time. Home prices are simply too high, hopefully, since lumber is dropping in price maybe that will help.

 

[Thebrownblob]

When I built my first house in 1984, the mortgage rates were 13-14%. That house cost $75K to build and is now worth $250K. The one I'm in now cost $326K to build two years ago and today it's worth $450K. I did take out a loan for half the cost and I locked in at 2.99%. My principal is $397 a month and I pay an extra $500 a month so I will pay it off in less than half the time. Home prices are simply too high, hopefully, since lumber is dropping in price maybe that will help.

Yep we’ve been living through a period of time when money was so cheap and yet a lot of complainers did not capitalize. Weird I’m not even that old and I got in on that deal. Lock my home mortgage in at 2.75 for 15 years. And I’m taking less than half of the time it’s pay it off.

 

[Cowboy Mac]

Not sure of pro/cons. With rates high and homes out of reach. Will 40 or 50 yr mortgages be offered to kick monetary policy down the road? Even with prices currently falling?

https://www.ftadviser.com/mortgages/2022/07/04/are-50-year-mortgages-a-good-idea/

This is a terrible idea. Please do not do this. Go look at the interest you will be paying over the life of that mortgage. You will pay at least the cost of the house in interest alone.

 

[nWo]

Stop buying mcmansions

 

[nWo]

That $700 truck payment would do major damage applied to your mortgage principal.

 

[Over70irregs]

I hope it’s not the case but we will see. Unfortunately the market seems like a farce without cheap $. There is no liquidity without RE appreciation. No manufacturing. Low pay service jobs that cannot….. keep up.

 

[JL 0513]

That $700 truck payment would do major damage applied to your mortgage principal.

That would be an entry level truck these days.

 

[IVE GOTTA PACKAGE 4U]

If you need 50 years of air for us maybe you need to go get something a little smaller

 

[JL 0513]

Stop buying mcmansions

That's pretty much all that is being built now.

Mine is only 4,500 sqft but I do have 2 kids.

 

[DriveInDriѵeOut]

If you're borrowing money for an appreciating asset at a lower interest rate than inflation, who's on the winning side of that arrangement?

 

[rod]

Yeah but your house was probably like 1/3 your income.

My first house was 18,000. I made $6.75 an hour. If you want to do the math knock yourself out.

 

[PT Car Washer]

That's pretty much all that is being built now.

Mine is only 4,500 sqft but I do have 2 kids.

Only 4,500 sqft?

 

[JL 0513]

Only 4,500 sqft?

I didn't want to over do it.

 

[Over70irregs]

Real estate as a speculative asset and wealth building tool has completely screwed entire generations out of home ownership. I hope I live to see the day that RE is demonetized. Everyone deserves better. Everyone deserves sovereignty .

 

[Whither]

That's pretty much all that is being built now.

Mine is only 4,500 sqft but I do have 2 kids.

Here it's pricey condos or $400k+/2500+ sq ft houses in the "exurbs", which used to be farmland a decade ago.

 

[Box Ox]

My first house was 18,000. I made $6.75 an hour. If you want to do the math knock yourself out.

What year? I just might.

 

[rod]

What year? I just might.

1972