patrick.net

DeficitHawk says

, I'd have no interest in a 50 year unless it was crazy low interest.

Anything but this would be insane.

Looks like this meme has aged very well...

And now, a less retarded idea.



I think Trump did his usual: Wild idea, get everybody talking about lifetime debt, then pivoting to a real idea. Now everybody who screamed about 50-year mortgages is fucked trying to explain why transferring a mortgage is a bad idea.

Anyone know who is advising Trump on this? 50 yr mortgages, 15 yr car loans, clueless comments on H1B yesterday. What’s going on?

The easiest ways to cement loyalty from the young people, men mostly, who broke in record numbers for Trump:
-boot needless H1Bs and prosecute ethnic nepotism in tech hiring (Indian mostly)
-keep US universities for US students (10% cap on foreign enrollment)
-remove private equity groups from residential real estate (as was law with Glass-Steagall)
-remove ethnic job networks at the low end, especially in landscaping and construction, and prosecute ethnic nepotism (Hispanic)
-end critical race theory, DEI, and disparate impact
-seal the borders and repatriate illegal immigrants

He’s done the last two, but seems oblivious about private equity’s role in inflating house prices. Also unaware or unconcerned about 75% of Bay Area tech being Indian. I can’t think of a group with more divergence in IQ than Indians — some brilliant, but most - chatty dullards. No one needs more to build up cutting edge tech (see the stagnation of adobe, Microsoft, NetApp, etc, since nepotism networks took over — no innovation, just milking existing technology and selling subscription models).

He imposed the $100k H1B fee, paid by the employer.

Now the calculus, especially for companies looking to staff for a 1-2 year project, isn't so cut and dried.

DemoralizerOfPanicans says

He imposed the $100k H1B fee, paid by the employer.

Now the calculus, especially for companies looking to staff for a 1-2 year project, isn't so cut and dried.

Is that for existing H1Bs, or just new hires? (I’ve read it applied to 2026 hires only, and the 100k might not apply from 2027 onward.)

goofus says

Is that for existing H1Bs, or just new hires? (I’ve read it applied to 2026 hires only, and the 100k might not apply from 2027 onward.)

New hires.

DemoralizerOfPanicans says

And now, a less retarded idea.



I think Trump did his usual: Wild idea, get everybody talking about lifetime debt, then pivoting to a real idea. Now everybody who screamed about 50-year mortgages is fucked trying to explain why transferring a mortgage is a bad idea.

I assume you'd have to stay with the same lender, requalify and the banks would probably need to raise new loan rates. So you're second mortgage(?) to cover any additional loan amount would be at a higher rate. High enough for the bank to recover what they would have made it they had done an entirely new loan. The quants will figure out how to work it so they don't lose any $$.

Trump never mentioned 15 year car loans.

Glock-n-Load says

Trump never mentioned 15 year car loans.

WH did.

https://patrick.net/comment?comment_id=2222512

https://wolfstreet.com/2025/11/11/a-50-year-mortgage-does-nothing-for-affordability-is-a-terrible-deal-for-homeowners-and-a-superb-deal-for-banks-investors/

How does the government push 15-year car loan? Cars loans are not government backed, unlike house mortgages.

Why would anyone want a long-term loan on a seriously depreciating asset?

Just imagine the "demand forward" fiasco. Tons of cars sold to the irresponsible masses when the 15-year loan becomes available, then sluggish sales for the next decade.

HeadSet says

How does the government push 15-year car loan? Cars loans are not government backed, unlike house mortgages.

You just answered your own question.

HeadSet says

Why would anyone want a long-term loan on a seriously depreciating asset?

The same ppl who have 5 year loans for seriously depreciating assets.

HeadSet says

Just imagine the "demand forward" fiasco. Tons of cars sold to the irresponsible masses when the 15-year loan becomes available, then sluggish sales for the next decade.

0h before that the repo rate will go through the roof. Used car market will be flooded even more.

MolotovCocktail says

0h before that the repo rate will go through the roof. Used car market will be flooded even more.

As long as you can cash out re-fi, I don't see anu possible problems.

MolotovCocktail says

The same ppl who have 5 year loans for seriously depreciating assets.

Good point, but if one keeps the car for ten years, at least he has no payments for 5 years. With a 15-year loan, the buyer is forever underwater trading in every 10 years or so. Then again, I am likely overestimating the ability of the public to act responsibly.

HeadSet says

Good point, but if one keeps the car for ten years, at least he has no payments for 5 years. With a 15-year loan, the buyer is forever underwater trading in every 10 years or so. Then again, I am likely overestimating the ability of the public to act responsibly.

The problem with cars is the interest is the interest. You pay it regardless of early or larger payments.

Homes you can pay it down and make the interest payments reduced away over time. If I buy a house and two months later pay it off because of an inheritance or lottery win I don't pay the scheduled interest. Can't do that with cars as far as I'm aware of unless loans have changed. I don't buy cars often though.

I'm against longer loan terms either way.

Misc says

MolotovCocktail says

0h before that the repo rate will go through the roof. Used car market will be flooded even more.

As long as you can cash out re-fi, I don't see anu possible problems.

WookieMan says

HeadSet says

Good point, but if one keeps the car for ten years, at least he has no payments for 5 years. With a 15-year loan, the buyer is forever underwater trading in every 10 years or so. Then again, I am likely overestimating the ability of the public to act responsibly.

The problem with cars is the interest is the interest. You pay it regardless of early or larger payments.

Homes you can pay it down and make the interest payments reduced away over time. If I buy a house and two months later pay it off because of an inheritance or lottery win I don't pay the scheduled interest. Can't do that with cars as far as I'm aware of unless loans have changed. I don't buy cars often though.

I'm against longer loan terms either way.

Any vehicle loan I have had was paid down faster than the original amortization schedule, and I paid reduced interest because of it too. Then again, I have only used credit unions for these loans, and they act just like a mortgage would with prepayment….

Misc says

MolotovCocktail says

0h before that the repo rate will go through the roof. Used car market will be flooded even more.

As long as you can cash out re-fi, I don't see anu possible problems.

Just yesterday, I had a friend who used to be a car sales manager tell me that this year there will be 800,000 repos. Next year there will be 3,000,000.

GNL says

Just yesterday, I had a friend who used to be a car sales manager tell me that this year there will be 800,000 repos. Next year there will be 3,000,000.

A sign that $50k 'low end' new cars are going to become a historical footnote.

Misc says

As long as you can cash out re-fi, I don't see anu possible problems.

I am pretty sure this is a joke, a dig at hard sell "no money down" real estate pushers.

DemoralizerOfPanicans says

And now, a less retarded idea.



I think Trump did his usual: Wild idea, get everybody talking about lifetime debt, then pivoting to a real idea. Now everybody who screamed about 50-year mortgages is fucked trying to explain why transferring a mortgage is a bad idea.

You are just making excuses for him. It’s simpler, he went with advisory from Pulte.

Because everyone knows government action increases costs, Fannie, Freddy, and so on. Get rid of those and prices go down since there is no more free money. But that won’t happen, because too many very wealthy people make their living off this government socialism.

No builder will bite the hand that feeds.

MolotovCocktail says

A sign that $50k 'low end' new cars are going to become a historical footnote.

They never existed. The low end NOW is about $20-23K (Nissan Versa, Kia Forte, Toyota Corolla, Honda Civic etc). Altima is $27K (and it's huge and loaded better than 2010 Rolls-Royce). Whatever is costing $50K now is not "low end". Not even low end EV.

https://babylonbee.com/news/trump-unveils-new-eternal-mortgage

https://babylonbee.com/news/banks-now-requiring-your-grandkids-to-co-sign-your-50-year-mortgage

Eric Holder says

MolotovCocktail says

A sign that $50k 'low end' new cars are going to become a historical footnote.

They never existed. The low end NOW is about $20-23K (Nissan Versa, Kia Forte, Toyota Corolla, Honda Civic etc). Altima is $27K (and it's huge and loaded better than 2010 Rolls-Royce). Whatever is costing $50K now is not "low end". Not even low end EV.

Try adding premium package and options could make it almost double!
I started with mid 30s base and left with 64 🤡
That includes one year insurance and below 5 APR.

Blue says

Eric Holder says

MolotovCocktail says

A sign that $50k 'low end' new cars are going to become a historical footnote.

They never existed. The low end NOW is about $20-23K (Nissan Versa, Kia Forte, Toyota Corolla, Honda Civic etc). Altima is $27K (and it's huge and loaded better than 2010 Rolls-Royce). Whatever is costing $50K now is not "low end". Not even low end EV.

Try adding premium package and options could make it almost double!

Well, try not to.

zzyzzx says

Everyone is focusing on the wrong problem. A fifty-year mortgage can be paid off by adding extra principle or when a sale is made. The REAL problem with a 50-year mortgage is an amplification the same issue with a 30 year mortgage - the lower monthly payment prevents house prices from declining to true affordable levels.

A sensible goal in a society that values freedom would be to encourage paid off homes.

Exactly.

Just adding more debt just keeps prices too high.

And lower prices are what we need, even if pisses off the boomers and the banks.

Patrick says

And lower prices are what we need, even if pisses off the boomers

Not all boomers like the high prices. Inflated values means higher assessment which means higher taxes. Some boomers also would like to see their kids able to afford homes. Another issue is when one wants to downsize. My neighbor two doors down are now empty nesters and want to sell and move to a smaller house. Problem is, the smaller houses are also inflated and the high prices means higher realtor commissions. My neighbors decided to stay put for now as moving would not save any costs.

HeadSet says

Inflated values means higher assessment which means higher taxes.

Not in IL. Our taxes are high, but they generally don't increase annually at all based on other home sales. It's based on your purchase price and then on government increases that are legally capped here without a vote on it . At least the county I'm in. Sold already but in 12 years our taxes went up $300/yr. Basically nothing. Not sure how it works elsewhere.

WookieMan says

Can't do that with cars as far as I'm aware of unless loans have changed.

Just don't sign a loan with pre-payment penalties. Or, manage your life so you qualify for no interest loans., i.e., great income and great credit.