OrangeBills

To add some light to this discussion, I did the auto-lineup function on my ESPN Fantasy lineup thing and it subbed out Josh Allen for some other guy I really worked over how to handle this...it was just computer math, so I decided to let it ride figuring I might be providing some reverse-karma in the end, Josh had a historic game, which my Fantasy team missed out on...I'll prob still win that...and I didn't hex the Bills chances... Psyched to have AI be wrong this time...

Can’t fault the administration from trying No less than Torsten Slok from Apollo is out with an extremely damning report, perhaps the worst indictment yet of the Biden Administration In 2010, the median age of a US home buyer was 39 Today it is 59 goodnight worst government in the history of the world, arguably, to topple this Civilization

15 million more than the great Obama!!

Just some final clarifications...first of all, NOONE is saying that a 50 year Mortgage is a great idea, or better than a 30-year loan. We're not comparing it to a lower duration loan, we're comparing it having to alternatively pay high rents (which is just as thrown away as Interest cost) or not be able to afford a home. Secondly, Home Ownership is a great investment when IRs are trending down, as they have for the last 40 years. Not as good as when they are going up, from an asset appreciation standpoint, as they have been lately (already owning your home when rates are soaring is AWESOME, however). But that's not really why you buy a home in the first place, it's a tangential benefit... Thirdly, there are various intangible benefits to owning a home vs renting...in general, you're going to find better neighborhoods and schools owning vs. renting, so that may drive some new homeowners to tackle. the 50-year plan for now, with plans to refi when the rates collapse during The Great Trump Recession. Lastly, and I thought I'd made this point already about this being the worst homebuying market because BOTH rates AND prices are high (as opposed the 1970s when rates were atrocious, but prices were rock-bottom)...but let me explain how I KNOW this is the worst housing market... A couple of years ago, my bank Chase found itself so upside down in it's loan with me (2.87% Fixed for 25 years) that they actually offered me the following: cut my payment in half each month and pay twice, 1st and the 15th, and it will cut my duration from 25 to 21.5 years... This is truly unprecedented...Banks HAVE offered to allow payments "every two weeks" but the faster amortization comes from the fact that you're making an extra payment every year (26 bi-weekly payments vs. 12 monthly) every year...in this case, the bank is giving me the benefit of bi-weekly amortization which just means they're incrementally getting some of their money back faster (every two weeks)...when I spoke to the Mortgage Banker he was like, yeah, they've never done this so it's a good deal. They are effectively adjusting their amortization schedule for me because the prior 4 years absolutely destroyed this rate/price relationship. So, I don't think it's worth the indignation about the 50-year...nobody is saying it's a "great deal"...SOME people would maybe decide it's the "best deal" so they can get in a house with their kids (if anyone is still doing that) and get the party started, and hopefully refi the loan in a couple years at a bit of cost but good deal long-term. The reality is that your vote matters Cheers.

Oh stop, where were you when Biden said dumb things every day (at least, the days he was working), and where have you been when our Gov't has subsidized and bastardized prices across a million things in our society from College to Housing to Healthcare (ACA subsidies, anyone?)

No, I work in Finance but not Mortgages or Commercial Lending at all I'm just trying to help people understand what is going on out there, so that somewhat sensible solutions to a very serious problem are addressed in practical terms, not this rampant Anti-Trump reactionary stuff...like I said, people mocked his 100 year bond suggestion, but that looks pretty smart now (if you know Finance) The 15-year Auto loan is just stupid and can be attributed to Trump says things

You keep saying "how much interest would I have paid?"...Um, you'd have paid less interest than the Montly rent you paid that was just thrown away. Your monthly rental payment will have included all the factors of home ownership - the owner's financing costs, Insurance, taxes, etc etc So while the long-term interest question/point is valid (in terms of 30yr vs. 50yr., it's not relevant over a considered 7-10 year own/rent decision I would assume if my monthly 50-year payment was $2,000 that I would be amortizing maybe $300/month, which over 7 years is $25,200 of Equity built up (not assuming down payment or asset appreciation)... If I put down 5% down on a $500,000 home, and the asset appreciated 10% and that was my loan payment, then I'm looking at $100,000 of Equity 7 years later, and I got to live in a better place, etc etc. You guys are freaking out about the 3-5% of people who would live in the same house for 50 years, who by the way could pre-pay to over come this stuff. No sensible

Fine, but you are getting indignant without factoring all the variables involved here Like location and quality of the home/apt/condo...if the Lease payment is similar to a 30-year mortgage (again, these are USUALLY similar) and the 50-year is $200-$300 less AND I build some Equity over 7 years, maybe that's what I'd opt to do to also live in a better place? Especially if they bring down the frictional costs associated with buying & selling (another variable) The fact is during the first term the Trump Admin wanted to sell 50 and 100 year Treasuries, and everyone called them dumb...which was stupid, because it wasn't long till we were borrowing TRILLIONS at durations in the 30 day to 2 year time-frame, creating financial pressures in our system So, let's hold off on the "they're stupid" stuff

I mean, the current spread between the 20-year Treasure and 30-year Treasury is a couple basis points (4.68% vs. 4.70%) How much more would you think Banks would demand for a 50-year over a 30-year (when they know the average home ownership period is 7-10 years, which BTW makes a 30-year mortgage not smart but so be it)

It is a terrible idea, offset only by the much worse reality facing the country here. Is it possible that the Trump admin is talking about 15 year Auto loans and 50 year mortgages to prove a point to the Fed that rates need to be materially lower? (or else prices are going to crater)

There is no pre-payment penalty, you can increase your monthly payment or refinance when rates eventually go lower (which, since you think Trump is an idiot you must be factoring in) Personally, I think we're in a Recession - actually we've been in a Recession for 3-4 years just with Trillions of deficit-spending masking that...so we should see lower interest rates up ahead so borrowers could refi at lower rates and shorter terms This is all just trying to fix the calamity the prior Administration has created in the price/rates balance that will have shut out a generation or two from home ownership, which remains one of the largest wealth creation assets for Americans.

no one is saying this is a “good idea” it’s a bad idea in response to many, many bad decisions by the prior administration that have led to higher prices and higher rates The cash flows at the borrower level would be about even (mortgage payment vs lease) only a portion (small up front to be sure) would go to Equity (say $500 of $2,000 to start, still better than tossing that money away in a lease, but doesn’t sound like people are gonna agree with this cause they hate the Trump admin) that’s fine, but there is just no question that the CPI supports the idea that all inflation is just Biden’s fault and here’s why we’re here talking about 50 year mortgages the WSJ ran an article assessing this about the why I did yesterdays only they assume a 20% down payment on a $400k house which is dumb cause if you have $80,000 you’re not doing this but anyways i wouldnt do it, I did a 25 year, but here’s where we are

1) every mortgage in the last 3 years was made thinking it would be refi'd later 2) I'm not saying these are "great" loans...they are effectively Leases where we build Equity at a slower rate 3) There are other factors at play in Real Estate, like location, property type, etc These are Biden-covered glasses comments, and again operating in a vacuum You can't just look at "Mortgage Rates" without looking at the Price function. The fact is when rates were very high, prices were much, much lower than they are today (obviously adjusted for inflation) The cost of building materials SKY-ROCKETED for 3 years, tariffs have had very little to do with it. Inventories generally run 3-6 months so those tariff increases would have just started hitting. You are correct that the problem is price.

I think you answered many of your own questions by asking other questions, but I'll try here. And I'll say, I haven't seen a payment schedule for a 50 year proposed mortgage in a while... You wouldn't build a ton of Equity right away due to Mortgage payment tables, true, but you would build "some" as opposed to zero. I assume generally a mortgage payment of 50 years would resemble what a rent payment would be, so Cash Flow is about the same. If you're buying new construction, let's hope you wouldn't face major capital improvements like furnace, roof and hot water for some time...property and school taxes would necessarily be wrapped up in any rent payment anyway. But you WILL be building Equity and after 20 years of "renting" you'd be glad you did...notice too the Trump admin is looking to bring down the frictional costs associated with buying/selling a house, etc So if you bought a $400,000 house with 5% down ($20,000), I'd say after 7 years you'd have $52,000 of Equity built up (I used 7/50 years = 14% of the term and discounted that pretty heavily to an 8% Equity build, so $400,000 * 0.08 = $32,000 addt'l Equity So if you sold and moved, you'd get your deposit back and maybe make a little bit...none of this takes into account that the asset is likely a better asset in a better place, on average, than a rental property.

People need to start contemplating things not in a vacuum, but within the totality of circumstances...like I understand our tribal, blame-driven society likes to think about 4-year intervals (blame the current President mentality), but this is likely just a simple response to the problem of Housing Affordability The bottom line is, there have been four calamitous things that have taken place that have put buying a home out of reach in just the last 5 years: 1) the radical dislocation of the Housing Market due to a Covid response that should never have happened, both Demand shifts and Production 2) the fastest ever spike in interest rates (and thus Mortgage rates) as a result of the Biden Administration's wreckless spending (BBB, IRA and everything else we're still learning about 3) the corresponding spike in Property Taxes (home values way up, mill rates flat to up = higher taxes (mine are up ~$2500 in five years, or about 20%) 4) all of this has led to a reduction in New Homes being built, and Existing Home Sales in the gutter (annualized low rate for 3 years, just incredible) So, the Trump administration is likely taking a practical look at how people should be buying homes...the reality is that the Biden Administrations' policies DESTROYED the relationship between income and Housing costs...so to lower the monthly payments to levels people can afford, at these high prices and high rates, you extend the loan duration (in this case, to 50 years - remember, 30 year mortgages have not existed forever: AI - 30-year mortgages became common in the 1960s after being authorized by Congress in 1948 for new construction and 1954 for existing homes. The borrower can refinance to more reasonable (shorter duration, lower rates) in the future, but the key is they'll start building Equity on these Lease terms, which is really what a 50-year mortgage is, as opposed to just throwing that money away.

This is such a dumb response to what I said, that I can't believe it actually. Whatever. You'll learn someday, someway

Very Low-Info to not understand why this is happening. There are ZERO vehicles being repo'd that were bought in the last 10 months. There are MANY from the prior 4 years when your catatonic hero completely destroyed the price/rates dynamic and set generations of Americans up for financial catastrophe. Go read some books or something. Learn about Finance, Economics, something, anything!

97% of Princeton professors/Admins have donated to Democrats, if they donated politically

They haven't been for at least 5 years

My guess is you are smart enough to know that this isn't true, but you're going along for reasons. If that's not the case, let me state that what Trump is doing is ENTIRELY devoted to AMERICANS who have been suffering due to Leftist policies.

I have him blocked but unfortunately see his posts in replies...this Roundybout is a disgrace to human beings That is an opinion, it's not "hate", you are allowed to think that someone else (who has demonstrated it) is a terrible human being.

Feels like Derrick Henry has that many against the Bills alone, but I like your point!

lol, moron there have been five a handful of months

Simply, you are a bad person. That's it. The good news is, my son and daughter of college age recognizing that people like you are bad people. This is good.

Forgive him, he's not a bright person. It's OK, I'm of the view that Leftism is mental illness...I welcome people back to reality with open arms