26 Comments
User's avatar
Michael's avatar

Judging by how ridiculously ignorant Americans are, this idea will likely be met with applause and fanfare. 50 year mortgages, 25 year student loans, 8 year auto loans, endless credit card debt... what could go wrong?

Russ's avatar
Jan 1Edited

My thoughts exactly. We are too debt oriented. Sooner or later, the bills will have to be paid. A country that lives on debt is not free.

"The people collecting interest for two extra decades." The actual "people" who collect the interest has always been a mystery for me. What sane person wants to lock up their money for a 30 year loan, much less a 50 year loan? It appears very few, these mortgages are packaged up and sold in the stock market or by private investors.

During the housing crash in 2008 those mortgages were a nightmare to unwind with many foreclosures. I do not understand why a mortgage worth $500k would be sold for $200k, without the owner being offered the right for first refusal. I bet many could have stayed in their homes if they knew the auction price. I realize it would require another mortgage finance versus cash, but it would preserve home ownership.

Yet it seems we want to go down that road again. What would happen is the US got out of the housing market. No FHA, NO VA loans, stop Wall Street from owning single family residences, limit investors to just one AnB.

Lisa's avatar

Like renting but with interest 🙄

Randy Warren's avatar

Just another FUCKING example of the con artists and grifters that are running a criminal treasonous administration with the ORANGE ASSHOLE at its head!

Dan Waldis's avatar

No reason to sugar coat it (haha -- kidding). I'm with you.

David Clark's avatar

Exactly what Trump and Republicans want, an entire country in debt to them. They can bite a nasty arse.

Sean McGuirk's avatar

Scott Turner will not have ANYthing to do with the implementation of approval for 50-year mortgages.. Those who do, just sent him out to take any flak. Bill Pulte is the chief MAGAtt appointee behind this, and other schemes, including the reckless, baseless prosecutions of Tish James, Eric Swallwell, Adam Schiff for alleged mortgage fraud. It is all MAGAtt revenge under color of "law." Pure gangster moves.

Bill Strong's avatar

You didn't emphasize that the one winner in this deal is the financial institutions that collect higher interest for longer. I got out of a 30-year mortgage in 25. I've never had a car loan longer than 3 years (3 of them). When I paid off a second car I kept making the payment to myself, earned a bit of interest and paid for most of the next car. I did have two mortgage refinances - one to get out of a 12 3/4% interest started in 1980, the second to build a small addition. I retired at 64 debt-free w/o no bills beyond monthly utilities. I have two brothers who did none of these who are now unable to get out of debt. One took on a new 30-year mortgage on a 60-year-old house at age 60. He's sunk. Both think I took the smart route.

Douglas Gilligan's avatar

Of course you did well, but as you pointed out, not everyone takes your path. The banks count on that.

I refuse to take on debt of any kind, but I am at a stage where I can afford to do that. If you can not get the down payment you rent, you are not building equity. If you need to drive to get to work and still have time with your family, you need a car, most need a loan to get a car. Cars have costs too. Most people do not make enough to be able to afford to be smart enough to passionately reduce and avoid debt AND own a house in decent condition.

I am having a house built that will (per design) last long after I pass away, with every intent to leave to my family to have a place to live, perhaps in times of need. Most houses are not built to last well after 60 years without LOTS of extra costs.

Hound's avatar

Let’s go from the general to the specific. RRE, Republicans Ruin Everything.

Theft by any other name is still theft. The banks crashed the world economy in 2007–2008. There was massive financial fraud and none of them went to prison. They should’ve gone to prison and been tortured and tortured and tortured and tortured and tortured in order to send a message to other billionaire slime.

Everything Trump and his Republican slimeballs do his related directly to greed and wealth.

That’s how it is peasants/serfs. Somebody needs to press the reset button. Somehow I think the reset button is gonna look like a mushroom shaped cloud. ☢️

If Americans had the courage and the common sense of the Ukrainians this would never have happened.

Jaclyn🏴󠁧󠁢󠁥󠁮󠁧󠁿Brit's avatar

Only thing I can think is that you'd maybe die before you're done? Still a rip off though.

Carole's avatar

And nothing to pass on to your children but the unpaid balance

Sohel Bahjat's avatar

I think that they already have offered nothing but false promises and lies and that only the destruction they promised has come true!

@shamrock1101's avatar

50 yr mortgage sounds like another huge collapse in the financial industry. Maybe we shouldn't bail them out this time. Just screw the average American again.

Skinnyscotty's avatar

The local news in Los Angeles recently broadcasted that the burned out vacant lots in the Malibu area are being purchased by large corporate investors rather than individuals. It seems, according to your article, that will only push prices higher. What can be done to keep properties from being swept up by these large investor groups?

Douglas Gilligan's avatar

Who is buying a house? Not young people, unless they are getting major help from 'well off' family.

Top earners went to college, and are busy paying down their student loans. Assuming they are very good earners and get ahead of that curve, and ready to settle down, we are talking, of the best, around 30 years old (more likely significantly older) unless they got a sizable inheritance because typically you need at least about 1/6 down payment to get a loan.

Add 50 years on top of 30 and you are 80 years old before you pay off the house. Note that 67 years of age is considered "Full Retirement Age".

They said "something that might help Americans afford homes across generations." because it will take multiple generations to pay it off, assuming you did not need to get a second mortgage due to some major life (or death) event.

Note that most houses need a new roof and other major work by about the 40 year mark.

Houses are built in a way to get people into houses, so they cut corners in many areas. Houses are built so they will burn (hence fire departments) and get termites (hence mandatory termite inspection for a sell of the house), Mold, Mildew, Water damage on the floor boards under the carpet or in the bathroom...

By 50 years, when the house is owned by the second (or third) generation, assuming the bank had not repossessed it and is renting it out, because a LOT of families have periods of time when everything goes wrong for a while... you have to wonder in what condition the house will be in and what condition the family will be in.

To me this smells like a gift to the banking industry and the ongoing effort to keep everyone in perpetual debt to the banks.

Douglas Gilligan's avatar

At 16% (median) down payment for a median priced house of over $400,000 that makes for about a $64,000 down payment, plus other incidental expenses, including the real estate agents commissions and other closing costs... and considering most young professionals with say five years of experience are earning up to around $100,000, that means even these people, generally carrying heavy student loan debts, and trying to live would have to save major portions of every check just to save for the down payment in five years. Don't forget the taxes owed on that hundred grand and basic living expenses, including rent...

Not normally going to happen. Just saying. Which bumps up the starting age on any loan.

Jean Conley's avatar

Bingo. And as far as screwing us, they already have. I'd say for at least 10 years now. They definitely didn't stop during Biden's administration. They're really on a roll now...........

jill_uss's avatar

Absolutely ludicrous idea, 50 year mortgage, when the median age to purchase first house is 40 years old! Do you have any idea how much friggin interest you will pay. Damn Republicans are for banks and corporate America. We have to build more affordable smaller homes. Get Private Equity out of the home buying business. Call your Senators and Congressional Representative.

Carole's avatar

Boy they really think they’ve outsmarted a bunch of dumb sheep- who will profit from this totally ridiculous idea of a plan??? The money guys- the bankers, realtors and money lenders- NOT NEW LITTLE FAMILIES JUST TRYING TO NEST. The regime has hit another idiotic low

Ray's avatar

Trump has destroyed the republican party as he destroys everything, he's destroyed AMERICA and the world is now laughing at USA because of trump. Release all, yes all the epstein files.

People reclaim America from this demented child rapist.

Don't you want JUSTICE for these females ? If there is any evidence out there wouldn't you want to to come to light and put these PEDOPHILES in prison. I say Democrat ,but a judge may be ,I am sure trump and his administration are not going to be forthcoming coming.