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18 sats \ 4 replies \ @Undisciplined OP 12 Nov \ parent \ on: Trump's 50-Year Mortgage Will Bring More Inflation and Corporate Bailouts econ
You aren't accruing equity via your house payments, but when inflation drives up the nominal value of your home, you do get to pocket the difference at time of sale.
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154 sats \ 3 replies \ @freetx 12 Nov
True.
The old adage of real estate is very true: Location, location, location.
I learned that. The house I owned from age 25-36 was in a poor location but it was a low price. I made almost nothing on that after accounting for property tax and repairs I did over those years. Maybe I netted 1% annually.
My current house, in a very high demand location, is growing at 5-6% annually.
My point on that is those who will likely need a 50 yr loan will not be buying "premium location" houses on average.
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21 sats \ 2 replies \ @Undisciplined OP 12 Nov
My expectation is that these will just become the norm and 30-year mortgages will be similarly niche as 15-years are today.
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154 sats \ 1 reply \ @freetx 12 Nov
Quite likely.
Although the savings in monthly payment reaches diminishing returns at some point. Nearly doubling the term (50 vs 30) only produces a ~13% reduction in monthly payment.
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21 sats \ 0 replies \ @Undisciplined OP 12 Nov
True, but how devalued will that payment be for years 31-50. In real terms, it'll be peanuts.
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