Comment on Fox star trashes Trump’s 50-year mortgage plan: ‘I do not like this idea’
ramble81@lemmy.zip 2 days ago
So here’s a little breakdown for a 300k loan, that would save you a whopping $40/mo. Now, even worse though your total spend would be $400k more.
As if that weren’t bad enough, a couple, both making minimum wage, still could not afford a house as they would only net $1,700/mo after taxes.
This effectively does nothing except further line banks bottom lines.
MirthfulAlembic@lemmy.world 2 days ago
It’s insane that a lot of articles are making the comparison assuming interest rates are the same, which will not happen. It’s a paltry monthly payment decrease at the expense of a massive increase in overall loan cost.
This has to be something the banks want packaged to seem like they’re doing everyone a favor.
ramble81@lemmy.zip 2 days ago
What would you think would happen with interest rates? The example I posted forecasted an increase due to increased risk. Would you think it would go down or stay the same?
MirthfulAlembic@lemmy.world 2 days ago
I’m agreeing with what you shared. Many articles on this topic instead provided monthly savings assuming rates would not change for a 50 year term.
ramble81@lemmy.zip 2 days ago
You actually bring up a good point. Would banks be willing to even do 50-year fixed rates? You know they’re seething with the number of people that locked in <3% fixed rates a few years ago. Wonder if they’d force something like a 20/30 ARM.