The article I saw about 50 year mortgages made them sound even more fucking stupid. It was something like a 400k house would decrease from 2300 to 2000 a month. 300 bucks. If they really cared about cutting mortgage costs all the middlemen would get kicked out. There's just so many people that have to get paid in the mortgage process a lot of times for very little.
But hey at least you die before you can even pay off 'your' house so the bank gets to keep it and will have collected more in interest than the house itself is even worth. I guess that's what you call The Art of the Deal.
Well a 400k house is probably going to be worth 2.5-3 million if not more in 50 years. There is a point where inflation would be bad for the banks but we aren't doing that here.
Well a 400k house is probably going to be worth 2.5-3 million if not more in 50 years.
And 2.5-3 million will have significantly less purchase power than it does today. I'm not sure if that's worth it considering you're gonna pay at least double the amount of your loan in interest alone over 50 years. So over 50 years you'll have made a 'profit' of 1-2 million if you sell your house and then you'll be without a roof over your head at age 70. Sounds like a pretty shitty investment.
Don't forget the part where for the "privilege" of a $300/mo savings you're going to pay basically twice as much in interest to the bank (to the tune of several hundred thousand dollars) over the course of the mortgage.
The article I saw about 50 year mortgages made them sound even more fucking stupid. It was something like a 400k house would decrease from 2300 to 2000 a month. 300 bucks. If they really cared about cutting mortgage costs all the middlemen would get kicked out. There's just so many people that have to get paid in the mortgage process a lot of times for very little.
Well golly, that means someone only needs to make 96k a year to not be "housepoor" instead of 110k.What a great deal.
But hey at least you die before you can even pay off 'your' house so the bank gets to keep it and will have collected more in interest than the house itself is even worth. I guess that's what you call The Art of the Deal.
Well a 400k house is probably going to be worth 2.5-3 million if not more in 50 years. There is a point where inflation would be bad for the banks but we aren't doing that here.
And 2.5-3 million will have significantly less purchase power than it does today. I'm not sure if that's worth it considering you're gonna pay at least double the amount of your loan in interest alone over 50 years. So over 50 years you'll have made a 'profit' of 1-2 million if you sell your house and then you'll be without a roof over your head at age 70. Sounds like a pretty shitty investment.
Don't forget the part where for the "privilege" of a $300/mo savings you're going to pay basically twice as much in interest to the bank (to the tune of several hundred thousand dollars) over the course of the mortgage.