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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.
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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True, but how devalued will that payment be for years 31-50. In real terms, it'll be peanuts.
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