this is hilarious. "Take a 50-yr mortgage, because maybe the dollar will go belly-up in that timeframe. " 😆 i mean... crazy idea, that actually would probably work for some institutional folks.

How to say you don't understand the concept of "time value of money" without saying . . . .

You are investing in an appreciating asset. It depends on where your property is located, and its rate of appreciation as to whether this is a good deal or not. I mean that's just the truth; you can talk about repayment all you want but the average term of a residential mortgage is 7 years. Will the value of your asset (home) increase is the question you have to ask first and foremost.

Instead of lending to you a large sum of money so you could use property you could not otherwise afford, the bank could invest it with no risk... While you get property that will also, likely, increase in value.

So, the the bank should not then make money for lending you that $500,000 in the first place for 16 years? So basically, you are advocating to stop banks from making money on their loans, which would make mortgages unavailable and thus NO home ownership.

Not to mention, the bank isn’t actually “lending” you money from their deposits. They create credit and then in turn charge interest on money that isn’t theirs and isn’t at risk. For those interested, listen to Richard Werner.

Crazy experience in these comments as someone trained in finance but (by the grace of God) not in that world. Watching all of these people reflexively use their little phrases like magic incantations that can overwrite the basic inhumanity of the financial system

The "inflation risk" is just term risk, and it's the reason that the ordinary shape of the yield curve is sloped, but this is generally accurate analysis.

Don't forget that even if you pay it off then you still have property taxes which are almost as much as a mortgage payment in many areas.

The average loan is refinanced in less than 10 years. The break even for a 30 yr schedule is year 8-9. The issue isn’t the loan term, the issue is charging interest on property transfer rather than property creation.

they give out 50yr loans?

People are not informed about what a large amount of money is saved by going with a 15 year loan and no the payment is not double that of a 30 year loan. Young people should buy a small old house on 15 year loan. Starter home or forever home.

Everyfing is fake and gey.

Fuck the lender fuck loans

Yeah... I don't think you're supposed to plan on taking the entire 50 years. Kids can pay the lower payment at first to get started, then as they financially mature, start making some principle payments, or refi into a 15 or 30. Standard loans still available- options are nice.

The break even for the bank is 16 years? That doesn't sound great. Or am I missing something? (I probably am).

Are you implying you should be able to borrow money without interest?

You offered a lot of bad advice to young people. I’m here to counter it

You are psychotic for suggesting the inflation risk point isn’t 100% valid. Yet you double down and suggest that it’s too stupid to even acknowledge. Amortization schedules are a very simple compounding calc. Not hard to understand the value of longer duration

Why aren't you mentioning equity?

So rent for 50 years. Pay off your landlords mortgage. He ends up with a property. You end up with a box of rent receipts.

Since our leaders are not willing to do the uncomfortable thing to save America, we’re getting closer to electing someone willing to do the horrible

It’s truly amazing how people don’t understand how finance works and how much of a blessing it is as well as how it makes the economy work and lives better. Go save your money, buy lad and build a log cabin with your own hands. See how easy that is.

Not only is it inflation risk for the lender, it’s opportunity cost for the lender. Claiming those who understand finance are too stupid to vote when you’re too broke to buy a house is crazy work. Why should someone give you money for free?

I suggest l, to make you feel better about usury, that you neee invest money because it has a rate of return and that money you’re investing is usury? No? What do yo think an investment is? You should also turn down interest from your saving accounts. You people are children.