patrick.net

He’s reacting to the market and trying to find ways to ease the housing crisis. Much like the fact that he’s removing tariffs that are killing the middle class when it comes to things like beef. he is truly a president “of the people and for the people”.

Does the comsumarism explain the real issue in so many things!

Consumerism is the perfection of slavery because it creates competition for prestige and economic logic, making people….

https://youtu.be/4pG-8XLLaE0

If I wanted to enter the housing market, a 50 year loan is as good a handle as any. Why do people believe that it is a 'permanent' handle? How many times do people re-finance as their circumstances change or they move?

I know people in California who support showy materialistic lifestyles by tapping home equity whenever they can until the model collapses and they have to move somewhere cheaper. In places like Orange County where show and materialism are religions, it's almost a standard model of materialistic financial instability. Fake it until you make it (or not).

TDS will criticize Trump for anything, but he is giving a grapple hook to the population to secure a homestead if they want while the new economy starts to build jobs and industries return to America. After that, anybody who wants to can re-finance to shorter term loans. I don't see that as a negative in the long run.

Why not 100 year loans then? Or hell, 1000 year loans?

Why not let nature take its course? Were you promised a rose garden as soon as you bought a house?

Consequences are so out of vogue.

If I wanted to enter the housing market, a 50 year loan is as good a handle as any. Why do people believe that it is a 'permanent' handle? How many times do people re-finance as their circumstances change or they move?

If you’re paying more interest over 50 years than the principal itself — and mortgage lenders balloon interest in the early payments — you never build equity. After 25 years you finally start paying down the loan. It’s a fancy term for renting with full responsibility for maintenance and taxes.

Ceffer says

If I wanted to enter the housing market, a 50 year loan is as good a handle as any. Why do people believe that it is a 'permanent' handle? How many times do people re-finance as their circumstances change or they move?

I know people in California who support showy materialistic lifestyles by tapping home equity whenever they can until the model collapses and they have to move somewhere cheaper. In places like Orange County where show and materialism are religions, it's almost a standard model of materialistic financial instability. Fake it until you make it (or not).

TDS will criticize Trump for anything, but he is giving a grapple hook to the population to secure a homestead if they want while the new economy starts to build jobs and industries return to America. After that, anybody who wants to can re-finance to shorter term loans. I don't see that as a negative in the long run.

Nothing stops you from getting a 50 year loan now other than banks won’t lend for 50 years because they don’t take on that kind of risk.

So Trump version is for government guaranteed credit, which will pass risk onto taxpayers and will skyrocket prices again since that’s what credit does.

SharkyP says

He’s reacting to the market and trying to find ways to ease the housing crisis. Much like the fact that he’s removing tariffs that are killing the middle class when it comes to things like beef. he is truly a president “of the people and for the people”.

Glock-n-Load says

Why not 100 year loans then? Or hell, 1000 year loans?

Why not let nature take its course? Were you promised a rose garden as soon as you bought a house?

Consequences are so out of vogue.

goofus says

It’s a fancy term for renting with full responsibility for maintenance and taxes.

That's called 'lease option' only w/o the option.

Ceffer says

If I wanted to enter the housing market, a 50 year loan is as good a handle as any.

Here is the problem:
A builder has a collection of houses that sell for $455k. The builder finds that people can only afford a $2400/mo house payment, which means a max price of $400k (6% 30 year). So, he has to drop the price $55k to sell. But here comes the 50-year loan. Now that same $2400/mo will buy that $455k home. Prices stay up. Same house, higher price.

HeadSet says

Ceffer says

If I wanted to enter the housing market, a 50 year loan is as good a handle as any.

Here is the problem:
A builder has a collection of houses that sell for $455k. The builder finds that people can only afford a $2400/mo house payment, which means a max price of $400k (6% 30 year). So, he has to drop the price $55k to sell. But here comes the 50-year loan. Now that same $2400/mo will buy that $455k home. Prices stay up. Same house, higher price.

Thank you.

Glock-n-Load says

Why not 100 year loans then? Or hell, 1000 year loans?

Wasn't there interest only loans at some point?

Booger says

Before the 1930s, virtually all loans were interest only with a balloon at the end. One had to pay interest while also saving on the side to pay that balloon at the end. Massive foreclosures during the Depression is why the self-amortizing loan was created.

Booger says

Glock-n-Load says

Why not 100 year loans then? Or hell, 1000 year loans?

Wasn't there interest only loans at some point?

When they did that previous bubble yes!!! Even subprime.

FortWayneHatesRealtors says

Booger says

Glock-n-Load says

Why not 100 year loans then? Or hell, 1000 year loans?

Wasn't there interest only loans at some point?

When they did that previous bubble yes!!! Even subprime.

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Oh, they even went so far as to have negative amortizing loans. That was a real shit show. What you think I'd forget about the "Pick-a-Payment" option.