Posted on 11/10/2025 6:56:25 AM PST by Red Badger
On a 50 year? Your payments are barely a trickle towards equity in the home. They’re HIGHLY HIGHLY weighted towards paying the interest.
These are personal choices people should be free to make for better or worse. Most folks understand its not economically savvy to take on 50 year mortgages but as an option… its something they can consider.
Maybe Trump thinks the answer to the giant federal debt is to redo it in 100 year bonds.
Yes. a fifty year mortgage will do nothing to start making housing more affordable. Just like government subsidies for health insurance UPHOLD current health insurance premiums, and do not bring them down; they paper over them with the subsidies, with taxpayers picking up the cost of the subsidies and insurers getting their current premiums supported. A fifty year mortgage adds to the total cost of the house by a considerable amount, which the buyer is able to ignore because that cost is being stretched out an additional 20 years.
Trumps “aid” merely helps keep housing prices up.
how about we stimulate the supply-side rather than stimulate the demand-side for housing? the deportations help, but efforts to further stimulate housing demand is NOT the direction we need to go down.
People should have the largest possible menu of ways to buy housing.
Agree.
We pay cash. Now.
Much earlier in life we paid cash except for our mortgage.
I do make an exception for non-recourse commercial loans that others are responsible to pay off and not us.
So if you have access to any 25,000 year loans, I think I could figure out what to do with them.
Death will come to us far sooner.
“People should have the largest possible menu of ways to buy housing.”
Fools need rules.
“The origin of the word mortgage is Old French, meaning ‘death pledge’.”
Yep. Same root word as mortal. It’s the only thing I remember from my real estate transactions class.
$10,000/year on Long Island is low. My house just crossed that much. Larger houses have $20k, $30k, or higher annual property taxes.
Good heavens, how do people pay those taxes????????.................
” Look at Europe where they have 100-year, multi-generational mortgages.”
Many of my neighbors in Germany had 100-year mortgages. While it’s true that wages need to rise to keep pace with the cost of living, long-term mortgages can offer flexibility. The only people who risk becoming financial “serfs” are those who fail to apply surplus income toward early repayment.
Fortunately, most mortgages don’t penalize early payoff. Lower monthly payments make it possible for younger couples—especially in their 20s and early 30s with modest incomes—to enter the housing market. As their earnings grow, they can accelerate payments and potentially pay off the mortgage in 20 years.
Same strategy here. Only reason I’m not paying down additional principal at this point is my interest rate is below CD rates.
Eliminate the FHA so such note aren’t federally backed?
OK.
But that won’t be the case.
What’s more, I will reiterate for like the 5th time - none of this happens in isolation. Even if you somehow ensure the taxpayer isn’t vouching for these 50 year notes, you’re still left with basic amortization schedules.
You’ll constrain market liquidity because lots of people on a 50 yr will simply find themselves locked in to the current home because they’ll have created very little equity.
I fully expect to be lambasted for saying this - but I have ALWAYS thought that this is a fundamental problem with DJT’s viewpoint on “debt”.
There’s an old cliche: If you owe the bank $100,000 - that’s YOUR problem. If you owe the bank $100,000,000 - that’s THEIR problem.
DJT has operated his entire life in the world of the 8-9-10+ figure financing world. At bigger numbers, you inevitably have more options because it’s MAD. At smaller numbers? Far less so.
What works for a billionaire does NOT work for most folks and it’s a mistake to reorient finance like it does.
Word mortgage is French Law term meaning "death contract", meaning that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure. Heck, fwiw let's have 250 year mortgages.
Understand.
At the end of the day, mortgages are tools for the wise and bondage for fools.
Liberty is allowing people to pursue happiness as they define it
They made Blackrock and others into the Boogey Man. What they mostly did was BUY when nobody else could get a mortgage during the Great Recession.
They bought entire subdivisions in places like North Las Vegas that Pulte was dying on. They did the same in Phoenix.
Now, some of those houses are worth 10X what they paid.
Now, many of those same companies are selling and as you pointed out they stopped buying in 2022. Housing prices are correcting in most southern US markets. The only place they continue to go up or at least remain tight is here in New England. Where they do not build big subdivisions. Where as in places like Austin, TX houses are selling for 20-25% less than three years ago.
“I fully expect to be lambasted for saying this - but I have ALWAYS thought that this is a fundamental problem with DJT’s viewpoint on “debt”.”
Lowering the federal total debt is never one of DJT’s major talking points. That, in spite of the fact that the annual interest payments on that debt are nearly as high as the annual DOD budget.
Every bit of paying off existing debt will lower the annual requirement on just paying interest on the debt. Devoting the whole tariff revenue to paying off some of the debt, will be a good step.
DJT is a populist, not a conservative. No one will actually “see” the debt or the interest payments on it go down. $2,000 is something folks will see. It makes zero economic sense but it will be popular and win DJT praise from the hoi polloi.
Me too. I got banned for warning people to be careful during a "trans day of violence" that was scheduled. How about you?
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