Home sweet home! Well, technically it won’t be ours for another 49 years. 🫠 That’s right, according to our new mortgage, we’ll be debt slaves until we’re in the dirt! J/K…unless?
With housing prices out the wazoo and Americans struggling to make ends meet, buying a home has never felt more out of reach. 🥴🏠 Trump’s floating 50-year mortgages as a fix, but are they a wise idea?
Here’s Five Fast Facts on 50-year mortgages:
- 🔢 Mortgage Math - Let’s break down some math. Say you buy a home for $400K and put $40K (10%) down. You get a $360K mortgage at 6.25% over 50 years. Up front, you’ll pay about $250 less a month than someone who went the 30-year route…
- 🆘 Taking the L - …BUT you’ll lose out big time over the life of the loan. How bad are we talking? Under a 50-year mortgage, you could wind up paying up to $816K total. The person with the 30-year mortgage would pay roughly $438K.
- 🐢 Turtle Power - In addition to paying a butt ton of funny money to hungry banks, there are several issues with a 50-year mortgage. A big one: you’ll build equity in your home a lot slower than someone with a shorter mortgage. Why? Most of your early payments go towards interest.
- 🏘️ Happy Hunting - Another problem: a lack of housing supply. With more accessible mortgage terms, we may see an increase in demand. However, without enough supply, this would only push existing home prices even higher. And if that happens, a lower monthly payment might still be too high.
- 🤔 Pros & Cons - Should you take out a 50-year mortgage? If you don’t qualify for a traditional mortgage or don’t have a hefty income, maybe. If buying a home is really important to you, this could be your ticket in. But don’t forget to consider your overall long-term financial plan. Depending on your age, you could be saddled with a mortgage for the rest of your life.
🔥Bottom line: Will the 50-year mortgage dream become an American reality? Stay tuned for the next episode of Black Mirror! In other Trump admin news, the big man just made a trade deal with Japan. What kind of shake ups are on the menu and how does it impact our relationship with China? Get all the hot facts in this article.
Would you take out a 50-year mortgage?
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