50 year mortgages

[milfandcookies]

The Trump administration is working on a plan to introduce this.
 

Who benefits from 50 year mortgage?

[JDHillFan]

5 minutes ago, milfandcookies said:

The Trump administration is working on a plan to introduce this.
 

Who benefits from 50 year mortgage?

Nobody. Asinine idea. 

[milfandcookies]

It benefits the banks right? Paying almost double in interest to them 

 

why would Donald Trump be on the side of the banks? This I do not understand 

 

 

Edited 18 hours ago by milfandcookies

[4th&long]

At this point you just sit back and laugh at sleepy Don and wait for the next guy to take over and undo all the bull#### he's done. 

[Bray Wyatt]

Usually with a 30 year mortgage they say that roughly the first 10 years of payment is mostly interest. I wonder what that would be on a 50 year. People that get that would need to stay in that house for awhile, probably unable to move after 5 to 7 years like some people chose to do now.

[All_Pro_Bills]

12 hours ago, milfandcookies said:

It benefits the banks right? Paying almost double in interest to them 

 

why would Donald Trump be on the side of the banks? This I do not understand 

 

 

Because that's what every Republican and Democrat administration and Federal Reserve Bank President has done since Nixon issued an executive order eliminating the gold convertibility feature of the US dollar. Since then government and their bankers have been creating inflation through monetary and fiscal policy that results in money flowing into financial markets which increases the wealth of the "haves" through capital appreciation while simultaneously increasing the cost of living for the "have nots" through increases in prices at a greater rate than wages. Add in bailing out the markets and the banks whenever the system of money creation fails which results in a crash and you get the idea.

Edited 6 hours ago by All_Pro_Bills

[milfandcookies]

32 minutes ago, All_Pro_Bills said:

Because that's what every Republican and Democrat administration and Federal Reserve Bank President has done since Nixon issued an executive order eliminating the gold convertibility feature of the US dollar. Since then government and their bankers have been creating inflation through monetary and fiscal policy that results in money flowing into financial markets which increases the wealth of the "haves" through capital appreciation while simultaneously increasing the cost of living for the "have nots" through increases in prices at a greater rate than wages. Add in bailing out the markets and the banks whenever the system of money creation fails which results in a crash and you get the idea.

totally. just disappointing because trump with his mountains of debt, and little concern for it, seemed like he was gonna be different.

 

Now he’s just another voice for the banks? Come on now. I am concerned Silicon Valley bro “Vance” is rubbing off on him cause he immediately shared the Trump tweet about 50 year mortgages with glee 

 

its asinine as another poster said 

[IYKYK]

12 minutes ago, milfandcookies said:

totally. just disappointing because trump with his mountains of debt, and little concern for it, seemed like he was gonna be different.

 

Now he’s just another voice for the banks? Come on now. I am concerned Silicon Valley bro “Vance” is rubbing off on him cause he immediately shared the Trump tweet about 50 year mortgages with glee 

 

its asinine as another poster said 

You’re probably going to B word and moan whatever he does. So your opinion means very little.

[milfandcookies]

17 minutes ago, IYKYK said:

You’re probably going to B word and moan whatever he does. So your opinion means very little.

Don’t be a douche. 
 

do you like the idea of 50 year mortgages or not 

[IYKYK]

1 hour ago, milfandcookies said:

Don’t be a douche. 
 

do you like the idea of 50 year mortgages or not 

I’m not the one who is being a douche. You B word and most over EVERYTHING Trump does! Maybe you shouldn’t be so narrow minded. 
As far as a 50 year mortgages? Not gonna happen. Unless democrats get in power again and turn this country into a communist country. 

[milfandcookies]

2 minutes ago, IYKYK said:

I’m not the one who is being a douche. You B word and most over EVERYTHING Trump does! Maybe you shouldn’t be so narrow minded. 
As far as a 50 year mortgages? Not gonna happen. Unless democrats get in power again and turn this country into a communist country. 

you couldn’t be more wrong. I don’t know where to begin. For starters democrats are not the ones proposing these mortgages 

[OrangeBills]

On 11/9/2025 at 8:41 AM, milfandcookies said:

The Trump administration is working on a plan to introduce this.
 

Who benefits from 50 year mortgage?

 

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.  

 

 

 

[teef]

6 minutes ago, OrangeBills said:

 

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.  

 

 

 

what equity can you possibly build?  how long will new buyers be paying for pmi?  who knows if people will be in the position to refinance moving forward?  why take on the cost of a new hot water tank, yard up keep, new roof, etc.  all of this while paying property and school taxes.  unless i'm missing something, it would be much better cash flow wise to just rent.

[milfandcookies]

12 minutes ago, OrangeBills said:

 

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.  

 

 

 

bro if you are in a 50 year mortgage you aren’t building any equity for 20 years.

Like any of these loans you pay interest big time for years before the principle is touched, a 50 year mortgage makes that worse

 

also, “they can refinance later” is a strange endorsement of a loan concept. Basically acknowledging it’s a stupid idea 

 

Edited 2 hours ago by milfandcookies

[The Frankish Reich]

A step back: as far as I know, there is no law preventing banks from writing 50-year mortgages. I looked, and apparently they are occasionally written.

So when Trump offers support for the concept, what does that mean?

 

I think it means getting the government (in the form of Freddie and Fannie) involved in guaranteeing those mortgages. And as we have seen, there is (and probably always will be as a practical/political matter) an implicit guarantee that Fannie/Freddie bonds will not default.

 

Government risk. Taxpayer risk. Moral hazard. Bad idea.

[Joe Ferguson forever]

12 minutes ago, OrangeBills said:

 

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.  

 

 

 

Mortgage rates are still near historic lows over the last 50 years https://www.bankrate.com/mortgages/historical-mortgage-rates/.  Building material costs have skyrocketed, in part due to tariffs.  When it cost more to buy new builds, existing housing becomes more valuable.  Builders started offering mortgage rate subsidies for buyers with few takers.  They just don't have the scratch.  Wages have not kept up with costs.

[milfandcookies]

Yeah the interest rates aren’t really that high historically. My parents talked to me about paying something like 15% (lol) in the 80s on my childhood home in South Buffalo

 

For a 300K home, spreading the loan to 50 instead of 30 amounts to like $200 change in payment. I don’t see how that makes homes more accessible for anyone.
 

But the interest over 50 years puts that final cost into the stratosphere. What a gift for the banks 

 

 

[OrangeBills]

23 minutes ago, teef said:

what equity can you possibly build?  how long will new buyers be paying for pmi?  who knows if people will be in the position to refinance moving forward?  why take on the cost of a new hot water tank, yard up keep, new roof, etc.  all of this while paying property and school taxes.  unless i'm missing something, it would be much better cash flow wise to just rent.

 

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.

[OrangeBills]

40 minutes ago, milfandcookies said:

bro if you are in a 50 year mortgage you aren’t building any equity for 20 years.

Like any of these loans you pay interest big time for years before the principle is touched, a 50 year mortgage makes that worse

 

also, “they can refinance later” is a strange endorsement of a loan concept. Basically acknowledging it’s a stupid idea 

 

 

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

37 minutes ago, Joe Ferguson forever said:

Mortgage rates are still near historic lows over the last 50 years https://www.bankrate.com/mortgages/historical-mortgage-rates/.  Building material costs have skyrocketed, in part due to tariffs.  When it cost more to buy new builds, existing housing becomes more valuable.  Builders started offering mortgage rate subsidies for buyers with few takers.  They just don't have the scratch.  Wages have not kept up with costs.

 

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.  

[4th&long]

1 hour ago, IYKYK said:

I’m not the one who is being a douche. You B word and most over EVERYTHING Trump does! Maybe you shouldn’t be so narrow minded. 
As far as a 50 year mortgages? Not gonna happen. Unless democrats get in power again and turn this country into a communist country. 

What an as shole.