milfandcookies Posted 4 hours ago Posted 4 hours ago 2 minutes ago, teef said: stop what? we had an awful time with sleep joe, and now we have to go round 2 of it. what did you think about when you heard the 15 year car loan. i bet you thought it was ***** insane. i'm willing to be that anyone of an age to buy a car immediately thought it was a shocking stupid idea. but you know who didn't think that? the president of the united states. to that pop in your head only to quickly tweet that out is a big problem. it's the first time i've really thought that trump was getting disconnected from reality. i don't want to deal with this again. none of us should. enough. I think maybe it’s because Trump has never had a car loan in his life so maybe he just doesn’t get it? Or like I thought before, someone is influencing him like the Silicon Valley bros he has in his ear this term 1
Orlando Buffalo Posted 3 hours ago Posted 3 hours ago 2 hours ago, teef said: it's a terrible idea unless you love paying interest to a bank. on average, extending a 30 to 50 year loan will decrease payments by about $300. It will add 500k to the interest. this isn't the invention of 50 year loans. it's just the first time anyone has suggested it to battle the housing issue. if people actually see this as an option, it's going to be a disaster. all a 50 year mortgage does is allow someone to purchase something they can't already afford. you think this is a good suggestion by trump? A house is in general an appreciating asset, while everything else you finance is a depreciating asset. Financing a house is a necessity for 98% of our country when starting off. If the 50 year mortgage allows you to get the house, which appreciates and you then pay it off in 25 years because you make more money it was a great decision if the house is what you want. Bad financial decisions is the hallmark of the Democrat party which makes me think this a good idea since they are so upset. As for the 15 year car loan, I can't defend, that is aimed directly at the low information morons, I can't even imagine the loan rate. 1
leh-nerd skin-erd Posted 3 hours ago Posted 3 hours ago 12 minutes ago, Orlando Buffalo said: A house is in general an appreciating asset, while everything else you finance is a depreciating asset. Financing a house is a necessity for 98% of our country when starting off. If the 50 year mortgage allows you to get the house, which appreciates and you then pay it off in 25 years because you make more money it was a great decision if the house is what you want. Bad financial decisions is the hallmark of the Democrat party which makes me think this a good idea since they are so upset. As for the 15 year car loan, I can't defend, that is aimed directly at the low information morons, I can't even imagine the loan rate. Just hopping in for a moment in your dialogue with @teef. For my money, very well done dialogue between you guys and I appreciate it. My only add here is that in spite of overwhelming data at the fingertips of most Americans, it’s less about the “morons” and more about people who just don’t understand some basic math. When you add in a compulsion for immediate gratification, the lure of easy money (at a substantially elevated interest rate), the failure to understand the notion of being “upside/down” on a vehicle that depreciated rapidly….and the notion that personal bankruptcy is no big deal, it’s a recipe for disaster. In this regard, while we can bash Dems or bash Rs, it’s a failure of our education system at a minimum. 1
All_Pro_Bills Posted 2 hours ago Posted 2 hours ago (edited) 50 minutes ago, Orlando Buffalo said: A house is in general an appreciating asset, while everything else you finance is a depreciating asset. Financing a house is a necessity for 98% of our country when starting off. If the 50 year mortgage allows you to get the house, which appreciates and you then pay it off in 25 years because you make more money it was a great decision if the house is what you want. Bad financial decisions is the hallmark of the Democrat party which makes me think this a good idea since they are so upset. As for the 15 year car loan, I can't defend, that is aimed directly at the low information morons, I can't even imagine the loan rate. First, almost everyone agrees a 50 year mortgage is a bad contract for the home buyer. A wonderful deal for the lender. If you run an amortization table the amount of principal of the monthly payment applied to the loan doesn't exceed the interest amount until sometime in year 37. So after 37 years of payments you haven't accrued very much equity in the home and are dependent on appreciation in the market value of the home to derive any real equity. You might be better off renting. Second, until you sell your home the appreciation in its value doesn't do anything for you. A 100% increase in your homes value will not provide you with any extra enjoyment, it won't increase the size of your kitchen, or make the basement hold any more stuff as you look around and wonder what's in all these boxes? One thing capital appreciation will do is qualify you for a nice big HELOC. Although the interest rate is about the lowest you'll get from any loan I would advise anyone to proceed with caution. The party home appreciation helps the most is the municipality of your residence which is more than happy to keep raising your property taxes every year at a rate which is multiples of your increases in income. Something that was the amount of a car lease on a Toyota Camry is now the equivalent of an additional mortgage payment each month. Then there are repairs, replacements, and upgrades to pay for like a new HVAC system or a roof. So at least being aware of these things is helpful in estimating a total cost of ownership of a home. Generally, if you plan on staying in the home then paying off the mortgage as fast as possible is the best approach. If you can accomplish that and bank say 1,500 to 2,000 a month instead of servicing a mortgage you can accumulate a lot of cash that can lead to you living a life of at least partial freedom from being a debt slave. Edited 2 hours ago by All_Pro_Bills 1 1
teef Posted 1 hour ago Posted 1 hour ago 1 hour ago, Orlando Buffalo said: A house is in general an appreciating asset, while everything else you finance is a depreciating asset. Financing a house is a necessity for 98% of our country when starting off. If the 50 year mortgage allows you to get the house, which appreciates and you then pay it off in 25 years because you make more money it was a great decision if the house is what you want. Bad financial decisions is the hallmark of the Democrat party which makes me think this a good idea since they are so upset. As for the 15 year car loan, I can't defend, that is aimed directly at the low information morons, I can't even imagine the loan rate. it doesn't always appreciate. look at some of the homes in florida after the hurricanes. some have dropped wildly in value, and with the increasing insurance costs of insurance, some of the real estate down there is taking a hit. can you imagine if people had 50 year mortgages. and if someone is taking out a 50 year mortgage, there's a very good chance they don't have the ability to pay it off in 25 years. if they could they would have taken a traditional 30 year and saved a ton. republicans are also furious about this. i think trump went a little rogue and moved too fast on this. again, this isn't political at all...it's financial. 1 hour ago, All_Pro_Bills said: First, almost everyone agrees a 50 year mortgage is a bad contract for the home buyer. A wonderful deal for the lender. If you run an amortization table the amount of principal of the monthly payment applied to the loan doesn't exceed the interest amount until sometime in year 37. So after 37 years of payments you haven't accrued very much equity in the home and are dependent on appreciation in the market value of the home to derive any real equity. You might be better off renting. Second, until you sell your home the appreciation in its value doesn't do anything for you. A 100% increase in your homes value will not provide you with any extra enjoyment, it won't increase the size of your kitchen, or make the basement hold any more stuff as you look around and wonder what's in all these boxes? One thing capital appreciation will do is qualify you for a nice big HELOC. Although the interest rate is about the lowest you'll get from any loan I would advise anyone to proceed with caution. The party home appreciation helps the most is the municipality of your residence which is more than happy to keep raising your property taxes every year at a rate which is multiples of your increases in income. Something that was the amount of a car lease on a Toyota Camry is now the equivalent of an additional mortgage payment each month. Then there are repairs, replacements, and upgrades to pay for like a new HVAC system or a roof. So at least being aware of these things is helpful in estimating a total cost of ownership of a home. Generally, if you plan on staying in the home then paying off the mortgage as fast as possible is the best approach. If you can accomplish that and bank say 1,500 to 2,000 a month instead of servicing a mortgage you can accumulate a lot of cash that can lead to you living a life of at least partial freedom from being a debt slave. thank you for articulating this so well.
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