Lengthening the loan has diminishing returns.

Apr 9, 2021
1:34:52pm

byujdmba Truly Addicted User

30 year fixed loan of $250K at 4%: payment = $1,193
40 years: $1,044
50: $964
60: $916

At some point you're paying nearly all interest for a long time.

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byujdmba

Bio page: byujdmba
Joined: Jan 5, 2015
Last login: May 3, 2024
Total posts: 19,109 (403 FO)

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Messages

Author

Time

POLL: We will see qualified 40/50/60 year mortgages in the next 5-10 years.

ag4cougs

4/9/21 1:22pm

Do you agree/disagree with this policy to address affordable housing issue?

ag4cougs

4/9/21 1:27pm

Based on Car loans increasing I could see mortgages creeping up.

groy

4/9/21 1:27pm

60 Year is almost admitting to never paying it off until death.

groy

4/9/21 1:28pm

Rent with all the required liability and repair responsibility.

JAGA97

4/9/21 1:29pm

Not really, you'd still own the equity if you sold.

BLT-Coug

4/9/21 1:46pm

And? Why is that a bad thing?

Ozymandias

4/9/21 1:59pm

I voted false because you included 50 and 60. I could see them getting longer

rivercitycoug

4/9/21 1:30pm

Lengthening the loan has diminishing returns.

byujdmba

4/9/21 1:34pm

When rates go negative - 60 year mortgage at 0% interest - not a bad deal

novacoug1

4/9/21 1:43pm

Many countries in Europe have 1% mortgages. It is now the norm

Nat Gas Man

4/9/21 2:51pm

40 year mortgages were a thing right before the 2008 crash.

Manti

4/9/21 1:34pm

Are under review right now and I don’ see how they aren’t approved by the Feds

Nat Gas Man

4/9/21 2:49pm

A two to five year loan should be the longest you have a loan out.

Archaea

4/9/21 1:37pm

Huh?

rivercitycoug

4/9/21 1:49pm

Depends on if the 30-year loan is racist or not.

ForzaPuma

4/9/21 1:53pm

If we returned to more generational housing it would make sense.

Tokolosh

4/9/21 2:07pm

I’ve been trying to teach this to my kids. Makes a huge difference in the

Nat Gas Man

4/9/21 2:53pm

It works some places because you only have 1 or 2 kids. How is that going to

Ozymandias

4/9/21 2:56pm

Well since the average US family is down to below 2 kids. I guess make more $$

Nat Gas Man

4/9/21 3:00pm

I think many home owners are already doing this

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