OMG no.
First, any time you’re leaning on FDR for ideas just stop. For the love of mike, STOP!
Second, we already *have* 50 year mortgages: They’re called renting.
Look, I can appreciate wanting to think outside the box but the key to thinking successfully “outside the box” is understanding how inside-the-box works.
Sometimes he’s like Rush. And proves these 50 years are a problem. A 30 year is too much. 15 to 20 years? Well good.
Average mortgage is only held for less than 15 years. People move, croak, face foreclosure, etc. The pittance of equity on a 50 year deal wouldn't touch the wear and tear of life.
OMG no.
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First thing, I’m not advocating for long term debt structures for individuals, but I wouldn’t be so quick to shrug them off.
“The devil’s in the details.”
I’m not a fan because stretching current real estate debt out will only continue high valuations, instead of sellers dropping their pricing.
However, mortgage debt has a complex history and prior to the current government real estate market created after the Great Depression & WW2, an individual generally had to secure a bigger down payment and had shorter length on the note.
I’m a skeptic for now, but history shows that longer terms weren’t the end of the world for creditors or debtors post WW2.
we already *have* 50 year mortgages: They’re called renting.
Yeh but if you rent you cant live in it after you die
Trump’s NOT saying everyone has to have a 50 year mortgage - he’s saying it should be an option. The idea has merit. And if it turns out with higher wages as people get older, they can always pay the house off sooner.
\ When my mother was young people would save up their money to buy a home - all of it. Save up the total price of a home before moving in. The change - when a mortgage was possible opened up home owership to a lot more people. This would be the same.