Forum Post: 40, 50, 75 and 100 year mortgages to solve Real Estate Depression in U.S. and around the World -- to shore up Real Estate Markets, Enable Peeps to Keep their Homes & Make Housing Affordable for the YOUNG -- If Banks will not finance CREDIT UNIONS can!
Posted 12 years ago on Nov. 10, 2011, 12:21 p.m. EST by FedWallFedWellFedUP
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40, 50, 75 and 100 year mortgages to solve Real Estate Depression in U.S. and around the World -- to shore up Real Estate Markets, Enable Peeps to Keep their Homes & Make Housing Affordable for the YOUNG -- If Banks will not finance CREDIT UNIONS can
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Real-estate needs to be re-valued. It has been artificially inflated. Interest charged on loans needs to be cleaned-up as well.
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First lets look at the profits made from various building materials. Are they really high? Now lets look at builders, how much is their cut? Now how about land prices? Can an affordable house be produced? 30 years is bad enough. Housing can be made cheaper, ask habitat for humanity! Everybody pocketed tons of money during the housing boom. To reduce the price of housing, start at the bottom and work your way up. This isn't Japan, we have land and trees. None of the houses built in the boom are likely to last more than 30 years without needing the insulating sheath, vinyl siding, roof, bathroom floors, air conditioning, water heater, etc completely replaced. It would be crazy to finance that for 100 years.
As a way to create intergeneration land ownership as well...the younger generations can build new housing on the family land. The idea is family land...historic land ownership the way to intergenerational wealth and the way to prevent intergenerational homelessness and poverty
Land ownership is always good! The house it sits on needs to be cheaper though. They don't really build things to last 100 years
agree -- this is an emergency measure to support the economy and prevent more foreclosures
100 year mortgages are used in Japan to create intergenerational home ownership
I have hit a sore spot on this point...so do you have a better solution?
Once the economy resumes somewhat normal functions...mortgage holders can pay off more rapidly.
Anyone who would take a mortgage over 20 years should have their head examined. 15 is better yet.
Here's an example: Let's say you finance $160,000 for just 40 years @3.345% APR...You would end up paying back $363,840. If you financed the same amount for 15 years you would only pay back $189,000. That's a difference of $174,840.
Payment under 40 year term: $1154 Payment with 15 year term: $758
Get yourself in a position where you could afford an extra $400 a month and you will be saving a lot of dough, that you could use to buy other things to stimulate the economy.
The only things these long term mortgages are going to stimulate are the investment portfolios of their corporation's investors and stockholders.
Lengthy mortgages could serve as temporary measure to shore up economy, keep folks in their homes, prevent homelessness especially for children, keep communities in tact and once mortgage holder begins earning more money...nothing should prevent them from paying mortgage off QUICKER. Perhaps one or two extra payments per year or more.
Nicely put. Of course the amortization would have be be adjusted or you would pay a trillion dollars for a $100,000 house.