Now go back and add up how much interest you paid across all those loans for a single parcel. You got obliterated.

you are too stupid to live

Tell that to Trump.

I'm sorry you're so stupid that you think that question is material. You are the reason this is being done to us.

THEN DON'T GET THE DOGGONE MORTGAGE! you're the type of ppl that got @McDonalds to get rid of super sized drinks and fries. don't like something for sale? Learn this one tip that business owners don't want you to know! Don't buy it

For a $500 loan at 6.5%, if you take the difference in monthly payment between 30 and 50 year loan, and invest that amount into the stock market every month, how much would you have after 30 years? Would it be enough to pay off the rest of the loan? @grok

House will probably be worth $2,000,000 though... So at least you'll have $1.5 million in equity 🤷‍♂️

Ummm, but you still have the option to pay it down in 30 years of you want, right? Or even 15 yrs? So, what you're saying is you don't want people to have the option because then they'll pay a lower amount each month and won't pay the mortgage down. Why is more options a bad thing?

The market appreciates by 2.5-3.5% per year all over the country. Most people only hold a single family house for 10-15 yrs. On a $500k house that’s a minimum profit of $140-220k @ only 2.5%. That’s tax free up to $250k as a single person, $500k if you’re married. They’d come up with better loan products if the risks were lower.

That’s if you just sit and pay the minimum monthly mortgage payment every month. The problem is people need to understand the way to get out of an interest bearing loan is to pay it off early. It gets you in the door, but then you need to be prepared to pay more than the monthly payment every month. If you make one extra mortgage payment that goes directly to principal every quarter you will pay off the loan and save 11 to 15 years. Plus, you are building into equity so that when you sell, you’ll have a nice little nest egg to buy a new home. You can always refinance to a 30 year as your income situation changes. Young people need to be told this before they take out a 50 year loan. If they are capable of doing it then let them have it. Right now all they’re doing is making rich corporations that own these large apartment complexes massively wealthy. Rent goes up by 10 to 20% every year. It’s ridiculous to put the money in someone else’s pocket when you could put it in your own investment.

Ayo I still owe a loan on my baja blast pie from door dash, anyone wanna help me get a house?

As in most cases, it depends. This is why there is a factor called "risk." What's the interest rate of each? They are not going to be the same. What is the expected rate of return if you save that difference in payments and invest it? What if you just spend it? At some point it just becomes rent. Most folks would be wise to just get the best house they can afford with 15 year fixed and if circumstance improve, trade up. Despite the doomsayers, it's very doable.

That's why the loans need to stop the compound, and just be a % of the original loan. Like $50k for $500,000 loan. You pay off the $50k fast in the first few years, then it's all on principle without compounding monthly.

Ok but how much equity will they likely have at the end or along the way? Better than putting money in a CD.

Your example interest rate is a bit high. The average interest rate in the last 25 years has been 5.25%. interest rates will go down if the risk of default goes down, If inflation goes down, and if the federal government guarantees the loan like they do with student loans. This is set to happen as wealth begins to pour into the nation, people will adapt to The new normal of AI and mass production. We will be transitioning from a service economy into a manufacturing economy.

While that long amortization schedule certainly looks painful on paper, sometimes the cash flow relief lets folks build wealth elsewhere faster, assuming they plan to aggressively pay it down later on.

This is quite literally a generational curse.

There is an easy formula to compute this for any term, rate and principal or payment you want. Anyway, the shorter the term the less interest you pay and the sooner you own your house. Pick that one.

"You will own nothing, and you will be happy!" - WEF head, Charles Schwab

Another way of looking at this: the bank gave you half a MILLION dollars. And it took you 20 years to pay back just what they gave you, if you take into account inflation, probably haven’t yet paid it back. Then you still owe. You know, you could save that and pay in cash if you want.

479k will not buy you a decent suit in 2075. If they write me a 200 year loan and keep me in “indentured servitude” for all time to come I will gleefully take it

50 years? that’s not a mortgage that’s a sentence.

Then don't get a 50-year lease. These reactions are like "OMG! My ice cream store just started selling pistachio ice cream. I don't like pistachio. The government needs to stop this!"

Then don’t take that loan. It’s really simple.

Everyone is talking like a 30 year has been around forecer.

50 year mortgages are just a terrible idea. The housing market is prime for a correction, doing this will only prolong the issue and make housing more unaffordable in the future.

Take it down to 2%. Then remember that a loan can be refinanced at any time. The problem right now is lack of inventory and profoundly inflated prices. Guess what fixes that...