50 year mortgage

[MIL-TFP-41]

I have my thoughts on this idea being floated around. My opinion is it would be taking advantage of someone retarded mentally disabled enough to sign up for one.

Curious as to what others think.

[jstell]

Sounds like renting from the bank.
If you bought your only house at age 28, statistically you'd have it paid off by the time you die, if you're a woman.
If you bought your house at age 14 it would be paid off by retirement age.  Hope your paper route pays well.

[neurosis]

I have my thoughts on this idea being floated around. My opinion is it would be taking advantage of someone retarded mentally disabled enough to sign up for one.

Curious as to what others think.

Sounds like you hit the nail right on the head.

Start financing a house at 20 (who in the hell can afford to do that these days) and not have it paid off until you're 70.  Makes perfect sense..  to someone who doesn't have these problems. 

[Newbeeee™]

I'm auld skool.... and always loved over paying to get ownership as fast as possible and as cheap as possible....

[neurosis]

I'm auld skool.... and always loved over paying to get ownership as fast as possible and as cheap as possible....

Same.  I had a 30 year mortgage and paid it off in 10.

The average monthly mortgage payment is taking up a larger percentage of income these days so it's becoming way more difficult to do. If we keep heading in this direction, I can't imagine what it will be like 10 years from now.

This feels like a good place for the "You'll own nothing and you'll be happy" line

[gcode]

Years ago I read that they were doing multigenerational mortgages in Japan.

That was years ago, before the population collapsed. Now there are whole cities and towns of unoccupied homes
rotting into dust. I doubt there is a need for these today, but they may still be necessary in the residential areas of big cities.

[Newbeeee™]

This feels like a good place for the "You'll own nothing and you'll be happy" line

Nah, that's just tin foily conspiracy.
Even though the WEF said it, they were only joking....

[SuperHoneyBadger]

Same.  I had a 30 year mortgage and paid it off in 10.

I'm auld skool.... and always loved over paying to get ownership as fast as possible and as cheap as possible....

I have heard, in Canada at least, that overpayment is usually subject to penalties. Is that true elsewhere? I don't have a mortgage, so I don't know what the deal is. I get the idea of paying down principle, but I'm not hip to the practicalities of the endevour.

I heard a lot of chatter about "well just pay it off faster" since the 50 year announcement, but all I've heard from people I know personally is that it's costly to do so. Maybe it's still less costly than an extra 20 years of payments? Maybe Canada is super-cucked?

[rdshear]

None of my mortgages or car loans have a pre-payment penalty.  That would be a deal breaker for me with a lender.

[Jeff]

Is that true elsewhere?

I've never heard of that for a home  mortgage or a car loan.
Maybe there are certain types of loans where they can penalize you? I wouldn't know.

[CADCAM396]

sign me up am 60. cant take it with you

[Newbeeee™]

My 10bucks says there's now clauses in some loans for penalty at early redemption....to catch the unwary, desperate or the DGAFs....

[CNCAppsJames]

This is worse than taxation of your own property.

I guess this is all part of the "you'll own nothing and like it" plan. 

It's sad, and it's despicable.

[rdshear]

I honestly don't think it's a bad thing for young people getting started.  It could give them an opportunity to get into a first house and as they grow their income with time, they could either refinance or double up payments to shorten the term.  Alternately, if they are of the rent mind, it could give them an option to purchase at around a rental rate and have a monthly fee that won't go up with time like rent would.

[pmartin]

Hey, Donald is for it so it must be a good idea!