The 50 year mortgage or death Gauge ?

[SOL]

A new UK lender is set to offer 50-year mortgages — why can’t they work in the US?

Homebuyers in the U.K. will soon have an option to lock in on a fixed rate, 50-year mortgage.

If paying for a home for half a century sounds daunting to you, you’re not alone, but some are saying it could make the housing market more accessible.

[Perenna]9https://www.perenna.co.uk/fixed-for-life-mortgage), a U.K.-based lending firm, has been granted a license by the country’s financial regulators and it plans to offer 30 to 50-year fixed rate mortgages.

The startup lender will begin by offering 30-year fixed mortgages and plans to roll out the half-century option in the near future.

With U.S. homebuyers also struggling to save up colossal down payments and secure affordable mortgage rates, could a similar idea take off here in the U.S.?

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50-year term touted as solution to affordability issue
Long term, fixed rate mortgages are being suggested as a way to help younger generations access a housing market that is now out of reach for most.

Before his resignation as U.K.’s prime minister, Boris Johnson told reporters last month that inheritable 50-year mortgages might be able to ease that country’s home affordability problem.
https://finance.yahoo.com/news/uk-lende ... 00045.html


Simple logic states that if you need 50 years to pay for a house, you can't afford one. However, that will not stop individuals from pursuing a dream that makes no sense. Furthermore, until the last cent is paid off, you don't own the property. The bank holds the title until you make the last payment

The U.S will probably introduce something like this. The banks must be salivating at the prospect of enslaving individuals for 50 years.

Japan takes the cake though, they have a 100 year mortgage that can be passed from generation to generation, kind of like sharing a prison sentence

[Budge]

A new UK lender is set to offer 50-year mortgages — why can’t they work in the US?

Homebuyers in the U.K. will soon have an option to lock in on a fixed rate, 50-year mortgage.

If paying for a home for half a century sounds daunting to you, you’re not alone, but some are saying it could make the housing market more accessible.

[Perenna]9https://www.perenna.co.uk/fixed-for-life-mortgage), a U.K.-based lending firm, has been granted a license by the country’s financial regulators and it plans to offer 30 to 50-year fixed rate mortgages.

The startup lender will begin by offering 30-year fixed mortgages and plans to roll out the half-century option in the near future.

With U.S. homebuyers also struggling to save up colossal down payments and secure affordable mortgage rates, could a similar idea take off here in the U.S.?

Don’t miss
Too many Americans are still missing out on cheaper home insurance

There’s a ‘perfect storm’ brewing in the multifamily housing market — here are 3 of the easiest ways to take advantage

You could be the landlord of Walmart, Whole Foods and Kroger (and collect fat grocery store-anchored income on a quarterly basis)

50-year term touted as solution to affordability issue
Long term, fixed rate mortgages are being suggested as a way to help younger generations access a housing market that is now out of reach for most.

Before his resignation as U.K.’s prime minister, Boris Johnson told reporters last month that inheritable 50-year mortgages might be able to ease that country’s home affordability problem.
https://finance.yahoo.com/news/uk-lende ... 00045.html


Simple logic states that if you need 50 years to pay for a house, you can't afford one. However, that will not stop individuals from pursuing a dream that makes no sense. Furthermore, until the last cent is paid off, you don't own the property. The bank holds the title until you make the last payment

The U.S will probably introduce something like this. The banks must be salivating at the prospect of enslaving individuals for 50 years.

Japan takes the cake though, they have a 100 year mortgage that can be passed from generation to generation, kind of like sharing a prison sentence

It begs the question of why they are needed. Because politicians fuck up everything so badly.

A la lanterne!

[phsmith1616]

There are 2 thoughts on this.
1) mortgages are a prison sentence
2) this will allow more people to own a home and is good.

I agree with both.

I dont believe that mortgages are prison, I see them as the cheapest money you'll ever get to borrow. If someone offered 500k at 4% to invest in the markets, i think a lot of us wouldnt think twice and take it. Where the 50 years becomes a problem is if you believe you will stay in the home until you die. The smart will use the lower payments to amass a large enough acccount to retire humbly in a new space.
In North America, it would spur on new home building as now they have even more peole to sell to which would help the economy. I dont see how it helps Europe the same way. For people that already own a home, it will likely keep them in the one they own but with limited space to build new, there will still be a lot of homebuyers standing on the side lines.(i could be wrong though, i am in canada).

Unfortunantly, i know that most will not use the extra cash flow to invest and prepare for retirement but instead to buy boats and go on vacation etc. Consumer spending would go up forsure.

[Yodean]

If you like the home and can lock in low rates, the 50 to 100-year mortage is great, assuming real inflation (loss of purchasing power of fiat) is much greater than the mortgage rate over that time period.

In this instance, inflation will eat away your Death Contract Debt, so you can live longer, to pay lower rates.

But one should also factor in maintenance costs, property taxes, renovation fees, etc.

I find a lot of homebuyers don't factor the extra stuff in.

[Eric]

If someone offered 500k at 4% to invest in the markets, i think a lot of us wouldnt think twice and take it.

When I refinanced I took cash out to the 80% LTV limit (to not pay PMI) and reset the clock to 30 years fixed at 3.125%. (I was rate locked at 2.75% but with nearly 60 days of "COVID-delays" plus a 10-12 day appraisal delay when the appraiser screwed up several things that had to be appealed, adjusted, resubmitted, the lender wouldn't extend the rate lock any more.)

Both of our cars and my sub-compact tractor were 5+ years old when we bought them and I got 5-6 year loans on all of them between 2.99% and 4.25%.

Gimme that 50-year fixed at 3.99% (maybe even 4.25%) and I won't even think about it! Hell, the appraisal has probably gone up another 15-20 grand or more... Now that COVID is gone, can we get this refi done before the September crash?

[AstuteShift]

This is a huge scam in the making

Even if you pay it off sooner, you don’t get credit to pay it off fast so essentially more slaves to be made

Mortgages are death contracts

[SOL]

If someone offered 500k at 4% to invest in the markets, i think a lot of us wouldnt think twice and take it.

When I refinanced I took cash out to the 80% LTV limit (to not pay PMI) and reset the clock to 30 years fixed at 3.125%. (I was rate locked at 2.75% but with nearly 60 days of "COVID-delays" plus a 10-12 day appraisal delay when the appraiser screwed up several things that had to be appealed, adjusted, resubmitted, the lender wouldn't extend the rate lock any more.)

Both of our cars and my sub-compact tractor were 5+ years old when we bought them and I got 5-6 year loans on all of them between 2.99% and 4.25%.

Gimme that 50-year fixed at 3.99% (maybe even 4.25%) and I won't even think about it! Hell, the appraisal has probably gone up another 15-20 grand or more... Now that COVID is gone, can we get this refi done before the September crash?

Most individuals don't think like this; they think of buying new things they don't need to impress creeps they dislike. Also you have to make sure you have cash flow throughout the mortgage contract otherwise things could go south fast

[harryg]

If a mortgage is used wisely it can be great leverage.

However...

viewtopic.php?p=12024#p12024

[phsmith1616]

If someone offered 500k at 4% to invest in the markets, i think a lot of us wouldnt think twice and take it.

When I refinanced I took cash out to the 80% LTV limit (to not pay PMI) and reset the clock to 30 years fixed at 3.125%. (I was rate locked at 2.75% but with nearly 60 days of "COVID-delays" plus a 10-12 day appraisal delay when the appraiser screwed up several things that had to be appealed, adjusted, resubmitted, the lender wouldn't extend the rate lock any more.)

Both of our cars and my sub-compact tractor were 5+ years old when we bought them and I got 5-6 year loans on all of them between 2.99% and 4.25%.

Gimme that 50-year fixed at 3.99% (maybe even 4.25%) and I won't even think about it! Hell, the appraisal has probably gone up another 15-20 grand or more... Now that COVID is gone, can we get this refi done before the September crash?

Most individuals don't think like this; they think of buying new things they don't need to impress creeps they dislike. Also you have to make sure you have cash flow throughout the mortgage contract otherwise things could go south fast

Sadly nearly all my family is like this. My friends only 50%, like minded people find a way to meet each other I feel.
I must say, its fun playing with all the toys they bought(that they cant afford) while they have them. Haha

[Eric]

Gimme that 50-year fixed at 3.99% (maybe even 4.25%) and I won't even think about it! Hell, the appraisal has probably gone up another 15-20 grand or more... Now that COVID is gone, can we get this refi done before the September crash?

I was only off by about an order of magnitude... I checked Zillow and their "zestimate" is +$112,000 since my last appraisal. I don't believe it's that high, a house with waterfront within 1/2 mile of me just sold and that's probably skewing their algo up. Also that process sucked and I'm not anxious to repeat it (esp. when I have a 3.125% rate).