Honestly in the current housing market as it exists, this is a good symptom of how fucked it all is.
Ignoring all the generational debt and absurd prices, something everyone already has spoken about at length, most people don't make it to the end of their mortgage anyway. So the 30 or 50 is meaningless to the common person, one is just a smaller number than the other and they'll be selling in about a decade anyway.
Why is that such a common thing to sell when you are 1/3 to almost halfway done with your mortgage, just to restart it way later in life guaranteeing you cannot have it paid before possible retirement? I think the answer to that is much more important to "fixing" this than people give credit for.
30 vs. 50 is definitely meaningful to the common person because you build about 15% equity after 10 years with a 30y vs. almost nothing with a 50y.
If your argument is that the common person is too dumb to care about this, then yeah you could say it's not meaningful. But the only way this doesn't kneecap them financially is if housing prices keep appreciating like a rocket forever. When that ends, the line to pay the piper will be LONG.
You're right, I hadn't even considered the equity angle. That does make it considerably worse.
But yes I do think most people are too dumb to think about this, though not because of their own retardation but because it has gotten so complicated (by design) that the common man couldn't realistically be expected to understand it all.
Honestly in the current housing market as it exists, this is a good symptom of how fucked it all is.
Ignoring all the generational debt and absurd prices, something everyone already has spoken about at length, most people don't make it to the end of their mortgage anyway. So the 30 or 50 is meaningless to the common person, one is just a smaller number than the other and they'll be selling in about a decade anyway.
Why is that such a common thing to sell when you are 1/3 to almost halfway done with your mortgage, just to restart it way later in life guaranteeing you cannot have it paid before possible retirement? I think the answer to that is much more important to "fixing" this than people give credit for.
30 vs. 50 is definitely meaningful to the common person because you build about 15% equity after 10 years with a 30y vs. almost nothing with a 50y.
If your argument is that the common person is too dumb to care about this, then yeah you could say it's not meaningful. But the only way this doesn't kneecap them financially is if housing prices keep appreciating like a rocket forever. When that ends, the line to pay the piper will be LONG.
You're right, I hadn't even considered the equity angle. That does make it considerably worse.
But yes I do think most people are too dumb to think about this, though not because of their own retardation but because it has gotten so complicated (by design) that the common man couldn't realistically be expected to understand it all.