Current Events > Soon we'll need 60-year mortgages to make home ownership "affordable."

(+) Yeah! (+)

80/80

it will happen: https://homeguides.sfgate.com/longest-mortgage-7677.html

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Ignoring the fact that that article claims this is an old trend first started in Europe and Japan, it also makes a pretty compelling case for why it's better than renting.

Supporters of longer term mortgages believe that it will help people who could not normally afford a house to move into the market. As the term of the mortgage is longer, the monthly payments are lower, and in most cases will be lower than a rental payment for an equivalent property. The long-term mortgage makes housing more affordable and brings a larger number of people into the market. Supporters argue that this will stabilize the housing market and eventually raise home prices.

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It will cut the monthly mortgage in half so im fine with that.

GIT-GUD posted...

It will cut the monthly mortgage in half so im fine with that.

ya I dont see a problem with this but I could be wrong.

the odds of me paying off my 30 year is about the same as paying off my 60 year, and if I sell before Ill have half my principal investment, but Im not only playing half that, but likely less on the mortgage insurance I still have atm and shit.

seems like a pretty good thing tbh but I havent looked into it much.

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Home ownership shouldn't exist.

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Not an expert, but I believe this pretty much means you are paying a shit load more in interest, and the value of the house that you actually own is much lower.

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Mortgages are usually cheaper than rent anyway.

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So basically you are just paying rent to the bank for the rest of your life instead of a landlord. You buy a house at 20 and your mortgage will be paid off at 80 which is more than the average life expectancy so you will mostly likely die before you pay it off. You will never really own the house.

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just build actual housing lmao why do we come up with the most convoluted solutions to simple problems?

AlCalavicci posted...

Not an expert, but I believe this pretty much means you are paying a shit load more in interest, and the value of the house that you actually own is much lower.

"but its lower than my monthly rent!"

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there was a time where 30 years was unthinkable

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Ex-Kefiroth posted...

Fuck paying even a cent of interest to a bank. They can rot.

Yeah the idea of taking out a 6 year loan is nuts.

Cars are averaging around $40,000 new now as well.

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my dad paid $60k for a new Dodge Ram 1500 some years back

Paid cash though.

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Why not just make the price of houses lower?

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Flauros posted...

Why not just make the price of houses lower?

hahahahahahahahahahahahahahahahaha

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Quicksilver posted...

So basically you are just paying rent to the bank for the rest of your life instead of a landlord. You buy a house at 20 and your mortgage will be paid off at 80 which is more than the average life expectancy so you will mostly likely die before you pay it off. You will never really own the house.

Who cares? You can own as much things as you want. You don't take it with you when you're gone. The thought of owning something forever is a fantasy. We don't even own ourselves forever.

Even when you truly own it, you still gotta pay rent aka property taxes.

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I'm 9 years into my 30 years. I should be done with it sooner than 30 because I'm paying additional to the principal

BlingBling22947 posted...

my dad paid $60k for a new Dodge Ram 1500 some years back

Paid cash though.

At his familys expense . . .

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Maybe this is true if you insist on living in an expensive area. Houses around here come out to be ~$100,000 tops.

A lot of them are under $70k

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Sounds pretty sweet to me. Longer term mortgage means lower payments. Lower payments means you can knock more principle off your mortgage every month if you so choose or use to invest elsewhere.

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Most people don't pay off the mortgage. After 5 years or so they sell the house and use what they gained as a down payment for something better. Then they sell close to retirement and downsize.

Average person doesn't buy 1 house at 30 to live in that same house for 25 or 30 years and then some. They probably go through 3 or 4 homes in their lifetime.

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Solid Snake07 posted...

Sounds pretty sweet to me. Longer term mortgage means lower payments. Lower payments means you can knock more principle off your mortgage every month if you so choose or use to invest elsewhere.

this was my initial thought as well. But I could see the concern discussed in this topic.

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I just need $60K principal to pay off, then it's mine. The tenants pay the entire mortgage.

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Doesnt seem bad, even if you dont finish paying it then it is better to pay the bank so you own some % of the property than pay a landord and own nothing. At the very least when you are old you can leave something to your kids.

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considering myself very fortunate as i'll be paying my house off in 18 years.

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yunalenne10 posted...

I just need $60K principal to pay off, then it's mine. The tenants pay the entire mortgage.

XD

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So everyone dies before paying their mortgage off, leaving their kids saddled with the remainder? And paying probably 400% more interest over the mortgages lifetime. Lol no.
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I'm going to say this is not a good idea. It just adds more and more debt without fixing other issue. There is such a thing as not being able to afford something.

I don't know if this is better or worse than people that get 10 year car loans, which only encourages them to buy something more expensive because the payments are more affordable. And yet it's creating its own financial crisis.

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lilORANG posted...

So everyone dies before paying their mortgage off, leaving their kids saddled with the remainder?

why do people think debt works like this

Broseph_Stalin posted...

why do people think debt works like this

Because a dead person's estate is literally responsible for their debt. Do you think it just vanishes?
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I guess not having kids or close family will pay off in 30 years

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lilORANG posted...

Because a dead person's estate is literally responsible for their debt. Do you think it just vanishes?

That's not the same as being saddled with debt, you don't inherit debt.