Fox star trashes Trump’s 50-year mortgage plan: ‘I do not like this idea’

Submitted ⁨⁨2⁩ ⁨days⁩ ago⁩ by ⁨MicroWave@lemmy.world⁩ to ⁨economics@lemmy.world⁩

https://www.independent.co.uk/news/world/americas/us-politics/fox-charles-payne-trump-50-year-mortgage-b2862482.html

Fox Business Network anchor Charles Payne gave a thumbs down to Donald Trump’s plan of offering 50-year mortgages to prospective homeowners as a way of addressing housing affordability, saying he does “not like the idea” as it is “not the way to do this.”

With the Trump administration currently under fire over the issue of the rising costs of living and soaring housing prices, the president floated the idea of a 50-year mortgage over the weekend. At the same time, Federal Housing Finance Agency director Bill Pulte declared that his office was “working on it” and it would be a “complete game-changer.”

Creating a longer-term mortgage product – currently, lenders offer a maximum of 30-year home loans – could lead to lower monthly payments for some homeowners. Financial experts have warned that there would be some severe trade-offs, however, and the amount of short-term savings would be minimal.

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sharkteethsandwich@lemmy.dbzer0.com ⁨2⁩ ⁨days⁩ ago

“If we want to get serious about housing affordability, why not ban Blackstone, one of the largest donors to both parties, from buying up entire neighborhoods and forcing us to rent from them? If we are serious about housing, why not remove the 55 million people here on immigration visas who occupy homes that could go to Americans who have worked, fought, and bled for this country?” he wrote on X.

He was so close, had it going so well, and then decided to say some stupid shit that just ruins his argument.

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- danekrae@lemmy.world ⁨2⁩ ⁨days⁩ ago
  
  then decided to say some stupid shit that just ruins his argument.
  
  It’s a great argument, if you are trying to convince a moron, I mean a republican.
  
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- luciferofastora@feddit.org ⁨2⁩ ⁨days⁩ ago
  
  If we are serious about housing, why not remove the 55 million people here on immigration visas who occupy homes that could go to Americans who have worked, fought, and bled for this country?
  
  Correct me if I’m wrong, but how exactly are these immigrants making their living, if not by working (and, in places with lax safety rules, probably also bleeding) for a country that’s not even their own?
  
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  - dmention7@midwest.social ⁨2⁩ ⁨days⁩ ago
    It was a simple typo. What he said was “Americans who have worked, fought, and bled for this country”.
    
    What he meant to say was "Americans who happened to be born in this country.
    
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  - sharkteethsandwich@lemmy.dbzer0.com ⁨2⁩ ⁨days⁩ ago
    Don’t forget that immigrants and non-citizens can join the military. Everything he said in that second part is just non-stop racism and delusional.
    
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- pdxfed@lemmy.world ⁨2⁩ ⁨days⁩ ago
  Had me in the first half ngl
  
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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.

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- 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.
  
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  - 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?
    
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dmention7@midwest.social ⁨2⁩ ⁨days⁩ ago
Aside from all the other ways this proposal is stupid, a 30-year mortgage at least makes some sense compared to the timescale of a typical working person–at least historically. You get your career going in your early-mid 20s. By 30ish you are stable enough in your life and career to make the investment into a house. You make those payments dutifully for 30 years, and then by typical retirement age you own your home free and clear, and your largest individual living expense is gone.

With a 50-year mortgage, you are guaranteed to have that debt hanging around your neck well into retirement, or worse.

And yes, I’m aware of all the hand-waving and outdated assumptions in that first paragraph, don’t @ me. Broadly speaking, the point is that the long-term implications of 50-year mortgages becoming common are pretty terrifying, since it’s virtually impossible to expect to pay one of these off during period you are gainfully employed.

You pay for 30 or 35 years, then default in retirement (or die). The banks earn exactly as much in interest from you during that time period, compared with a 30-year loan, plus they get your house at the end.

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- 4grams@lemmy.world ⁨2⁩ ⁨days⁩ ago
  
  With a 50-year mortgage, you are guaranteed to have that debt hanging around your neck well into retirement, or worse.
  
  It painfully obvious, that is the point.
  
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DarkCloud@lemmy.world ⁨2⁩ ⁨days⁩ ago
Mortgage means “deaths pledge” doesn’t it?

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- pdxfed@lemmy.world ⁨2⁩ ⁨days⁩ ago
  “and just one more initial on page 452 sir, oh the coughing fits don’t bother me. We do need to get these sign and notarized before you expire.”
  
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Mouselemming@sh.itjust.works ⁨2⁩ ⁨days⁩ ago
From the article:

Graham Stephan, a real estate investor and financial commentator, wrote on X: “A 50-Year mortgage would allow you to buy approximately 10 percent more house (or save about 10 percent) at the expense of nearly DOUBLING your payment schedule. There’s no way that ends well.

“A 50-year mortgage isn’t worth it and won’t add much benefit since your mortgage interest is front-loaded. Homeowners will have very little, if any, equity by the time they sell (homeowners keep their home an average of 11.8 years). It sounds good on paper, but financially, it makes very little sense.”

Montana Representative Lukas Schubert, a Republican, wrote on X: “The best way to help young homebuyers is to deport all the 30 million illegals from this country, that will free up a lot of housing!"

from me: Good point, Graham. As for you Lukas, who do you think builds houses and apartments in this country?

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- pdxfed@lemmy.world ⁨2⁩ ⁨days⁩ ago
  I love that the article has the insane quote suggesting kicking out 55 million visa holding immigrants, and this quote says 30 million illegals… that’s 85 million people. That’s more than a quarter of the entire US population of ~340m. They propose, in a time of worker shortages, when basic needs aren’t being met to remove 1/4 of the people living here.
  
  If you can look past the blatant racism and xenophobia that is driving by political ends I guess we can trust that this new “land grab” of available homes would be efficiently, effectively and responsibly distributed to those in need in a way that ensures continuity of communities, neighborhoods, cities, tax bases…don’t even want to imagine. America is falling apart and has been for 30 years. We’d go full RoboCop.
  
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  - Supervisor194@lemmy.world ⁨2⁩ ⁨days⁩ ago
    If 25% of the available buying pool was disappeared, it would create a glut that would probably crash the market. Just like in 2008, people would give their keys back to the bank rather than accept that their formerly $750,000 house was upside down to the tune of several hundred thousand dollars. This is particularly true now because in 2008, so many people did it that the banks couldn’t properly hold it against their credit. They were essentially forced to let them re-buy much sooner than they would have been able to in a normal world (and they were enabled to do so by government bailouts - they’re too big to fail!). So people have been trained that they don’t have to accept their house values crashing, and rightly so tbh. But it means the next crisis would be worse.
    
    We’d go full RoboCop.
    
    We’re going to, because money doesn’t know what to do other than attempt to further itself.
    
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seraphine@lemmy.blahaj.zone ⁨2⁩ ⁨days⁩ ago
wasn’t that the whole plan?

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danc4498@lemmy.world ⁨2⁩ ⁨days⁩ ago
I’ve always wanted to own a home ~loan~

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resipsaloquitur@lemmy.world ⁨2⁩ ⁨days⁩ ago
He’s the businessman president. Expert of real estate.

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HubertManne@piefed.social ⁨2⁩ ⁨days⁩ ago
Don’t worry. If the economy and housing market get even worse we will go to 100 year and then just generational mortgages.

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- Mossheart@lemmy.ca ⁨2⁩ ⁨days⁩ ago
  Yes, cause we’ll certainly continue to have children in that hellscape of a world.
  
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  - HubertManne@piefed.social ⁨2⁩ ⁨days⁩ ago
    way ahead of ya. What cracks me up is it looked bad in the mid aughts and it has not even gotten close to becoming better. Maybe they will bamboozle the generations after mine but to late to get me breeding at this point.
    
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