Introducing: THE 50 YEAR MORTGAGE!!!

yikes. just one more way to get a whole bunch of people what they want, NOW, so they can suffer later as the lender makes a ton of profit.

my bank hates me for being ahead on my 60 month car loan because they make less money on me... if that doesn't say something...

 

Mortgage lengths in Europe are as long as 100 years. Parents pass the house and mortgage on the their kids.

 

<div class='quotetop'>QUOTE(DonDNH @ May 10 2006, 10:19 AM) [snapback]252732[/snapback]</div>

where in Europe? Just curious

 

Germany and England. I think France, Italy and the Netherlands as well.

 

<div class='quotetop'>QUOTE(DonDNH @ May 10 2006, 10:36 AM) [snapback]252742[/snapback]</div>

where did you get that info from?

 

Japan has them too:

"One particularly dangerous trend developing here is the interest-only mortgages, which allow homeowners to pay nothing on the principal for a few years. Japan had worse instruments, such as the three-generation loans, with a 90 or 100 year payment schedule, that when prices dropped led to even worse traps, many ending up in bankrupcy."

 

<div class='quotetop'>QUOTE(maggieddd @ May 10 2006, 10:54 AM) [snapback]252751[/snapback]</div>

I lived in Germany for 7 years and England for 3. My landlady in Germnay described how their mortgages worked and said the others were similar for longevity.

On the other side of the coin though, interest rates were quite low as were monthly payments in spite of the extremely high property costs in Europe.

 

Wow...a 30 year mortgage sounded long enough to me, then they come out with these 40 and 50 year mortgages. And even longer in some parts of Europe?! I can't imagine paying on a mortgage all my life, only to never actually pay it off and in fact pass it on to my kids. Wow... :blink:

 

<div class='quotetop'>QUOTE(Mystery Squid @ May 10 2006, 08:58 AM) [snapback]252715[/snapback]</div>

2 words: Modernday Serfdom

 

Sorry for resurrecting this Zombie, but what's old is new again - just like fashion.
People that don't learn from history is doomed to repeat it............

Not really, Look at the 2008 housing crisis. Nobody went to jail and laws passed to prevent this from happening again was killed in congress latter, after the firestorm has died down and people forgot.This is just setting us up for more of the same financial roller-coaster on a regular basis. If you think the deficit is high now, just wait until a few of those roller-coaster rides ripple though what's left of our economy. Fannie Mae and Freddy Mac was left 'holding the bag of shit' after the banks offed those known defective mortgages onto them. For those that need me to spell it out for them, Fannie & Freddy are backstopped by the US government - YOUR tax dollars. The dumb banks held onto that worthless paper, which was S.O.P. for small rural community banks. IMHO; You know the current administration doesn't do guard-rails and most of those appointees wouldn't be able to manage a Cinemark, much less an entire industry.

At least Canada has guard-rails in place - and they also have health-care for ALL. Seems strange that someone would almost copy their system and vilify them at the same time?????

Just my two cents......

 

Interesting that this is a resurrected thread from the George W. Bush administration—before the 2008 crash!

Cue the Ecclesiastes quote?

 

Yes; noticed that after my RANT...... but the content is sound and not some brilliant idea, we now have perspective.

 

i don't remember reading this:
wbna13187964

 

Ya gotta remember that this was BEFORE sub 4% mortgage loans and the decade and a half of zero inflation. This is the first time the gen-Z, Zoomers are seeing REAL inflation and how it reaps havoc on fixed income people. They thought that a side-gig was all they needed to make ends meet - now that they're up to 2-3 side-gigs on top of their regular job - Union jobs and Unionizing isn't looking so bad.

 

our 45 year old daughter calls them pathetic losers who expect everything to be handed to them.
me? i don't know anybody that young

 

Your daughter is correct. IMHO; Spare the rod and spoil the child - they may end-up still in your basement well into their 30's. My nephew would say; 'your stressing me out'; whenever my sister would get on him about his homework. We don't know where he picked-up that garbage and he's been told; wait until you have rent, job deadlines, utility bills, car payments, credit card payments, grocery bills - Once you get to that point in your life; you can talk to me about stress....... Your ONLY job right now is to get good grades in school - everything else is currently being paid for. It's not going to be like this FOREVER, because your NOT moving into the basement.

 

LOL, that's exactly the attitude she encounters when interviewing college graduates for employment.
they even ask how much time they'll be expected to work

 

50-years? Dang... But I can see both sides...just pay rent for a LONG time trying to save up enough for a down-payment while house prices continue to climb or get the ridiculously-long term mortgage. Folks will have to do some serious financial planning. Maybe get into the loan but, then, work hard on paying double and triple monthly payments to get the principal lower to the point where you can replace with a 30-year, then do the same until you can get a 15-year then a 10-year....the lower the years, the lower the interest rate.

Or just join the US Military and then you qualify for a 30-year VA loan!! (Not the best mortgage BUT they do finance 100% of the amount.)

 

My understanding is that they no longer teach anything financial related in grade school. You'll need to do that in college; from my understanding. By that time, banks and credit card companies already got most of them "on the hook." Student loans, easy credit cards. Especially if the parents themselves aren't financially literate and never taught them.
When I was in grade school, it was called home economics. They taught balancing a check-book and budgeting; pretty much how to run a household. They also taught how to cook meals from scratch which I know public schools don't teach that anymore. Also remember earthquake and A-Bomb drills too.

Boy this is really "stressing me out!!"