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They say the market is going to collapse every year. At the beginning of this year they said we'd be in the middle of a full blown recession by now, none of them know what they're talking about.
Unless the 50yr rate is heavily subsidized and LOWER than a 30yr (very unlikely), the payments will be approximately equal and you will pay a ton more in interest over the life of the loan. Going from 15yr up to 30yr lowers payments and increases purchasing power significantly (over 30% I believe) – but going from 30 to 50 is less than a 10% difference. Numbers aren't linear all the time and bigger numbers can work differently. People should play around with amortization calculators – this is a stupid idea (again unless heavily subsidized, in which case who pays that cost?)
I like how Brian used to say it. No hypocrite policy. Straight to the point.
i didn't see the sneeze live, but I still received the good luck from it.
Run to the hills
Look. The implementation of a 50 year mortgage is effectively generating one time capital gains for everyone who owns real estate today. People will just bid up the housing to a greater degree if you give them more financial tools with which to do it. We saw this with the first time, homebuyer credits and subsidized down payment payments. Politicians do not want to upset home prices so they don’t do what genuinely would balance out supply and demand and just build more affordable homes.
Furthermore, we need to dial back the NIMBYISM. Just because you own a plot of land and you happen to live there does not mean you get all that much say and what goes on around that plot of land. Sure, you should be able to Democrat prevent people from dumping toxic waste, or setting up gas turbines right outside your house, but as far as what gets developed on nearby property… And especially how many affordable houses get developed near you, you should not get an overweighted choice in that matter. Everyone is for affordable housing until it’s in their neighborhood, and as someone who lives in a neighborhood with a proposed seven story construction kitty corner to my house, I say bring it on! We need it here. There is almost no parking in this 243 unit proposed dwelling, with only 40 parking space is visible on the plan, and I also think that’s a big win! It will force people onto transit. That will force more transit through the neighborhood and increase frequencies.
Brian and Bo throw out a Days of Thunder reference!?! 🏁
Brian Preston reppin' Georgia with not only the on air sneeze BUT ALSO the sleeve wipe. I love it! You guys need to be my advisors!
Why does Brian have a giant caterpillar on his tumbler?
46:51 the issue I have with the 50 year mortgage is that it won't make houses more affordable, it will make monthly payments more affordable. Those aren't the same thing.
It will lower the monthly cost to own a home by 15-20%. Sure, that is a good thing in the short term, but the big problem is that the market will inevitably shift to normalize that discount. Right now 15 year mortgages are unaffordable for literally 95% of families. I'm willing to bet that only a few years after the inception of the 50 year mortgage the same will be true for 30 year mortgages.
The second issue is that the buyer will pay over twice as much in interest vs a 30 year loan. We're already in a consumer debt crisis. I can't fathom how bad that crisis will be with people adding another 6 figures to the list.