As usual, Trump absolutely fails to understand the real issue, which is INTEREST. It should be f***ing ILLEGAL to charge 125% of the borrowed amount in interest for a mortgage, but that is exactly what every bank does, on every 30 year note it issues.
Go plug in these stats into any mortgage calculator, and see for yourself: 6.2% 30 year fixed with 20% down on a $400k house.
Amortization figures:
Monthly loan payment: $1959.90 - no property tax or home insurance, just the loan.
Loan amount: $320,000
Total Interest Paid: $385,564 <- that, right there, should be illegal! 120% the borrowed amount!
Total cost of loan: $705,564
Usury must be made illegal again, this is highway robbery.
Yes, but with the 50 year mortgage home prices will go up another 130% because starter homes are still not being built, while people sign up to pay $1 million in interest, default and collapse the market (again!).
As long as the payments are some low number within their monthly wages, they don't care. Interest? That's someone else's problem, an abstraction inconceivable to the Eternal Now.
I want to agree but it also is the homeowner CHOOSING to take three decades to pay it off.
So for the benefit of taking a third of a century, that's the cost.
Keep in mind you are not forced to take the full 30 years. You can pay it off earlier. It really is a restriction on the lender not on the borrower. The borrower can take out a 30 yr mortgage and pay it off in 12 months if they were inclined and able.
Let's say it wasn't a percent. What if the agreement was, you can take up to thirty years to pay off the loan, but so long as the principal hasn't been paid, every month I charge you a flat fee of $X. Would that be acceptable?
Amortization tables can be done for free in one minute on a hundred websites. It's not voodoo. Anyone can do it. We either need to accept that borrowers are responsible for their actions OR decide some people are too fucking stupid to take out debt and also rescind their voting rights, driving privileges, among other things. But we can't have a system where an individual can vote and drink and drive and smoke and own an AR-15, but CANT be expected to understand a the terms of a fucking mortgage.
Lender is only able to charge 20% max over borrowed amount, spread over 360 payments. GAAP rules need to be changed to account for this, as right now banks make money over the term of the loan based on the interest paid by the lender every month, which is also why mortgage interest is front loaded into loan repayment amortization schedules.
This is all ignoring that the government is the one paying the front risk for home loans to begin with. The fact banks have the audacity to charge interest, which was created to mitigate risk they don’t actually incur, makes the entire system redundant and quite literally a socialist creation.
I agree that some of their risk measures are redundant, like PMI in case you can't pay the mortgage, but they can also simply repo the house if you don't pay, what is the point of both?
That said, what is your alternative to them charging interest? What if someone wants to buy a home but doesn't have the funds to pay in full. What then?
Why are the banks charging interest to cover risk that is paid for by the government? When’s the last time banks actually lost money from home loans? Again, we socialized losses for banks but for some reason privatized profit.
That's a series of questions, but not an answer. I can infer, but I'd like you to actually explain the alternative? Just, take the purchase price and divide it by 360 and call it a day? And what if they miss a payment, or don't pay it off in 360 months? Interest controls for all of that.
Are you really pretending that banks are fronting the risk on home loans? What happened the last time banks took a hit on home loans? Again, government socialized the risk.
No, I'm not pretending anything. I'm literally just trying to hear you out and I'm asking you questions that I'm genuinely interested in hearing your answers. I think the problem is you have incorrectly assumed I'm acting in bad faith.
Are we sure it is his hubris or just another ploy to enrich his banker friends in Black Rock and other banks? After all, his kids are all married into the circles.
I wonder how long until generational homes make a return... except this time, they'll be called that because your grandchildren will still be paying them off.
That's pretty bad, pretty, pretty bad. Who wants to be tied to a mortgage for their entirely adult life? The reason people cannot afford a house are price, availability and salaries (CoL). You fix those three, you fix most things.
Nobody wants to but like, this is to be expected. And honestly, people will probably do this. as much as it sucks, you’re buying a monthly payment. Not a house. Rent? Same shit. But no equity.
I would never do it given my situation but there are absolutely people that would. My aunts rented an apartment for the last 50 years of their lives. Money completely down the toilet.
The interest paid on a 50 year loan is vomit-inducing, but getting literally nothing forever is even worse.
Of course, this is a terrible move optically because dealing treating the root causes of the affordability issues would be infinitely better than trying to treat them indirectly like this.
People already do this. They take out a thirty year loan, and a decade later they refinance for another thirty years, wash rinse repeat. This is just removing the extra steps. Do you know how many boomers bought their homes in the late 80s/90s and STILL have 10, 20 years left on their mortgage? Homes that they bought ~30 years ago? It's insane.
All bankers need to be put into work camps, the entire damn financial industry. Every single hedgie, every single broker, every single last one of them. The stock markets must be dismantled, the commodities markets shut down, loans made illegal, and banks required to keep 150% reserves.
One thing i notice is.. commies dont go after banks. They dont seem to ever be effective in stopping billionaires. They seem to only harass working people.
Okay, how about instead of this the borders are closed, visas for foreigners are suspended, you stop offshoring, jobs for citizens first and wages are looked at.
And that advise is what I think should happen in the UK, not sure what wages are like in the USA but they can't be lower than here.
As usual, Trump absolutely fails to understand the real issue, which is INTEREST. It should be f***ing ILLEGAL to charge 125% of the borrowed amount in interest for a mortgage, but that is exactly what every bank does, on every 30 year note it issues.
Go plug in these stats into any mortgage calculator, and see for yourself: 6.2% 30 year fixed with 20% down on a $400k house.
Amortization figures:
Monthly loan payment: $1959.90 - no property tax or home insurance, just the loan.
Loan amount: $320,000
Total Interest Paid: $385,564 <- that, right there, should be illegal! 120% the borrowed amount!
Total cost of loan: $705,564
Usury must be made illegal again, this is highway robbery.
Yes, but with the 50 year mortgage home prices will go up another 130% because starter homes are still not being built, while people sign up to pay $1 million in interest, default and collapse the market (again!).
As long as the payments are some low number within their monthly wages, they don't care. Interest? That's someone else's problem, an abstraction inconceivable to the Eternal Now.
I want to agree but it also is the homeowner CHOOSING to take three decades to pay it off.
So for the benefit of taking a third of a century, that's the cost.
Keep in mind you are not forced to take the full 30 years. You can pay it off earlier. It really is a restriction on the lender not on the borrower. The borrower can take out a 30 yr mortgage and pay it off in 12 months if they were inclined and able.
Let's say it wasn't a percent. What if the agreement was, you can take up to thirty years to pay off the loan, but so long as the principal hasn't been paid, every month I charge you a flat fee of $X. Would that be acceptable?
Amortization tables can be done for free in one minute on a hundred websites. It's not voodoo. Anyone can do it. We either need to accept that borrowers are responsible for their actions OR decide some people are too fucking stupid to take out debt and also rescind their voting rights, driving privileges, among other things. But we can't have a system where an individual can vote and drink and drive and smoke and own an AR-15, but CANT be expected to understand a the terms of a fucking mortgage.
Lender is only able to charge 20% max over borrowed amount, spread over 360 payments. GAAP rules need to be changed to account for this, as right now banks make money over the term of the loan based on the interest paid by the lender every month, which is also why mortgage interest is front loaded into loan repayment amortization schedules.
Does that mean if the principal is $100, the bank can charge $20? (100+20)
Or does it mean the bank can charge $120? (100+120)
Genuinely asking.
And under what circumstances?
and that is total complete BS too
This is all ignoring that the government is the one paying the front risk for home loans to begin with. The fact banks have the audacity to charge interest, which was created to mitigate risk they don’t actually incur, makes the entire system redundant and quite literally a socialist creation.
I agree that some of their risk measures are redundant, like PMI in case you can't pay the mortgage, but they can also simply repo the house if you don't pay, what is the point of both?
That said, what is your alternative to them charging interest? What if someone wants to buy a home but doesn't have the funds to pay in full. What then?
Why are the banks charging interest to cover risk that is paid for by the government? When’s the last time banks actually lost money from home loans? Again, we socialized losses for banks but for some reason privatized profit.
That's a series of questions, but not an answer. I can infer, but I'd like you to actually explain the alternative? Just, take the purchase price and divide it by 360 and call it a day? And what if they miss a payment, or don't pay it off in 360 months? Interest controls for all of that.
Are you really pretending that banks are fronting the risk on home loans? What happened the last time banks took a hit on home loans? Again, government socialized the risk.
No, I'm not pretending anything. I'm literally just trying to hear you out and I'm asking you questions that I'm genuinely interested in hearing your answers. I think the problem is you have incorrectly assumed I'm acting in bad faith.
Would you mind answering my questions, please?
Are we sure it is his hubris or just another ploy to enrich his banker friends in Black Rock and other banks? After all, his kids are all married into the circles.
50 year mortgage?
Assuming you buy at 25 (very, very young nowadays), you pay off at seventy-five years old.
That's roughly average life expectancy.
That's fucking renting.
Most "owned" houses are just rentals from the bank.
And when you own it, you rent from the government.
I'm not a big fan of the government.
.45-70 is an alright form of government.
Yeah it’s always been renting dude. Welcome to the kike banking system.
I tried telling my parents that property tax is one of the pillars that Marx talked about. They just laughed at me
Looks like slavery is back on the menu, boys!
I wonder how long until generational homes make a return... except this time, they'll be called that because your grandchildren will still be paying them off.
How antisemitic of you to notice
That's pretty bad, pretty, pretty bad. Who wants to be tied to a mortgage for their entirely adult life? The reason people cannot afford a house are price, availability and salaries (CoL). You fix those three, you fix most things.
His handlers won't profit off of fixing those problems. They profit off of perpetual debt.
Nobody wants to but like, this is to be expected. And honestly, people will probably do this. as much as it sucks, you’re buying a monthly payment. Not a house. Rent? Same shit. But no equity.
Turd hoagie or a shit sandwich ? Take your pick.
If you're paying for 50 years, you're not getting real equity until 25 years into the loan
I would never do it given my situation but there are absolutely people that would. My aunts rented an apartment for the last 50 years of their lives. Money completely down the toilet.
The interest paid on a 50 year loan is vomit-inducing, but getting literally nothing forever is even worse.
Of course, this is a terrible move optically because dealing treating the root causes of the affordability issues would be infinitely better than trying to treat them indirectly like this.
People already do this. They take out a thirty year loan, and a decade later they refinance for another thirty years, wash rinse repeat. This is just removing the extra steps. Do you know how many boomers bought their homes in the late 80s/90s and STILL have 10, 20 years left on their mortgage? Homes that they bought ~30 years ago? It's insane.
All bankers need to be put into work camps, the entire damn financial industry. Every single hedgie, every single broker, every single last one of them. The stock markets must be dismantled, the commodities markets shut down, loans made illegal, and banks required to keep 150% reserves.
One thing i notice is.. commies dont go after banks. They dont seem to ever be effective in stopping billionaires. They seem to only harass working people.
What a cohencidence.
Stalin was literally a bank robber.
Oy vey!
a certain painter from Austria tried that in the 40s.
The last guy to try this has been vilified in every sector of the media for eighty years
Lmfao FUCK THAT. That's literally you buying the house for the bank. What's gonna happen you're 80 years old, dead and owning mortgage payments?
You've paid $500,000 so far on a $300,000 house, which the bank now also gets, now worth $600,000.
Not to mention house prices will raise to match making it unaffordable again.
"Help young people buy a house"
Okay, how about instead of this the borders are closed, visas for foreigners are suspended, you stop offshoring, jobs for citizens first and wages are looked at.
And that advise is what I think should happen in the UK, not sure what wages are like in the USA but they can't be lower than here.
I can't even decide which is worse: floating the concept of 50 year mortgages or saying FDR was a great president.
Good news, his approval rating among young people plummeted a while back so there's not much room for further decline.
Or, and this is a wild idea mind you, we could increase the supply of houses, and reduce the demand for them.
Are you pedes ready for lifelong debt slavery? At least we're not speaking German!
Zognald!
Inflation inflation inflation. Gold standard anyone? Stop printing money?
Sorry president, we want 15 year amortizations because housing prices went down to 1/3 what they are now.
What is he thinking!? It's bad enough the world economy is completely built on debt, let alone usury. Now this?
Good luck with owning anything, every generation after Z!
Kick out all illegals and prevent any from coming. Reduce legal immigration acceptance by 90% for 50 to 100 years. Stop printing money...
Done and done.
The thought of that interest paid over 50 yrs is painful.