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Posted on 11/10/25 at 7:06 pm to Sun God
quote:
It’s also better than lighting money on fire
Then you would just have no money. Not a lifetime of debt.
People need to realize that always carrying a mortgage and auto loan is not and should not be the norm.
Posted on 11/10/25 at 7:07 pm to LazloHollyfeld
quote:
seem to me a better alternative would be offer a guaranteed “lower” rate on 30 yr for primary homes - like 3.5/4%.
Yes, but that would be costly and probably require more government subsidies, thus costing taxpayers by increasing government spending and keeping inflationary pressure high.
Posted on 11/10/25 at 7:07 pm to cbree88
with a house, you really do not own it when a mortgage exists. The mortgage company will get involved in the quality of maintenance, insurance coverage and will likely sell the mortgage to a third party who will change the terms and penalize severely non compliance with changes.
better off renting when young.
better off renting when young.
Posted on 11/10/25 at 7:09 pm to Pintail
quote:
Not if you look at the amortization schedule of a 50 year loan at 6% interest.
Landlords can raise your rent as much as 10% or more each year. That’s a bad situation as long as you’re in it.
Posted on 11/10/25 at 7:10 pm to Pintail
quote:
Just make sure you roll your closing cost into the loan. That way you can be upside down for the first 10 years of your first house.
My first mortgage was 0 down with closing cost rolled into my loan. Think I actually walked away with a check at closing. Sold it 6 years later and netted $20k - I think I made 4 extra payments total.
My only regret is that my next mortgage was based on the assumption I was keeping that house, ended up selling it a month after we moved. Should have kept it.
Posted on 11/10/25 at 7:11 pm to Trevaylin
[quote]mortgage company will get involved in the quality of maintenance, insurance coverage and will likely sell the mortgage to a third party who will change the terms and penalize severely non compliance with changes.[/quote
I don’t think they’re legally able to change many significant terms after the fact.
I don’t think they’re legally able to change many significant terms after the fact.
Posted on 11/10/25 at 7:12 pm to 904
quote:
Most people don't spend more than 8-10 years in a house, especially younger people who are more likely to be renters, so... At the end of 10 years with a 50 year mortgage at 8% for a $300k house (20% down), you will have knocked all of $6k off the principle. I'd much rather rent and not have to pay for repairs. This 50 year mortgage stuff is peak insanity and stupidity.
Can’t sell that apartment but you can sell that house. Wouldn’t personally use a 50 year mortgage but I’m not going to bitch about more options in the market. Bet this can be used to pass homes between generations too.
Posted on 11/10/25 at 7:12 pm to fwtex
quote:
What will likely happen is the price of homes will go up because of buyers having more affordability, so buyers will eventually be in the same situation with a 50 year mortgage as they are now with a 30 year.
This
It will get more people into houses in the short term, but as with everything, when you increase demand faster than supply prices will skyrocket.
Posted on 11/10/25 at 7:12 pm to cbree88
quote:
Still better than renting perpetually
It’s better than renting perpetually
It’s worse than renting for 4 years and then buying with a 30y mortgage
Posted on 11/10/25 at 7:12 pm to 904
quote:
At the end of 10 years with a 50 year mortgage at 8% for a $300k house (20% down), you will have knocked all of $6k off the principle. I'd much rather rent and not have to pay for repairs.
If you aren't handy, you could easily spend 3-4x that much over 10 years in proper maintenance.
Posted on 11/10/25 at 7:13 pm to cbree88
quote:
Landlords can raise your rent as much as 10% or more each year. That’s a bad situation as long as you’re in it.
Government can raise the property tax any year too.
Your roof can need replacement at year 3
Your ac can go out the first summer you live there.
I understand renting feels like throwing away money but just look at the numbers.
On a 50 year $250,000 mortgage at 6%. You have a whopping $2,600 in equity after 3 years. $4600 after 5.
Posted on 11/10/25 at 7:15 pm to Hateradedrink
quote:
It’s worse than renting for 4 years and then buying with a 30y mortgage
Why not get a 50-year mortgage and then refinance it as soon as you can afford the 30-year loan? Or just make additional principal payments to pay down the 50-year loan way sooner.
Posted on 11/10/25 at 7:16 pm to BabyTac
quote:
BabyTac
Hey man we can’t all buy our mansions and yachts with straight cash like you
Posted on 11/10/25 at 7:16 pm to cbree88
quote:
Why not get a 50-year mortgage and then refinance it as soon as you can afford the 30-year loan? Or just make additional principal payments to pay down the 50-year loan way sooner.
Because consumerism does not allow 99% of people to think like that.
Posted on 11/10/25 at 7:17 pm to cbree88
quote:
Still better than renting perpetually Did you actually read the whole post or just look at the title?
Not if your rent is equal to or less than the portion of your mortgage that goes to interest and taxes. In that scenario you could take the difference and invest in anything you wanted (whereas with a house you are just investing in a specific house) while not being on the hook for upkeep.
There are many scenarios where renting is a better financial choice (regardless of what boomers have screamed for years). Basically any scenario that doesn’t include you living in the house for more than 10 years makes buying a bad choice. You are “burning money” with a mortgage too. It’s just some of it.
Posted on 11/10/25 at 7:17 pm to cbree88
quote:
Landlords can raise your rent as much as 10% or more each year. That’s a bad situation as long as you’re in it.
Maybe localized in certain high COL markets, but the largest nationwide increase overall since 1921 was ~8% a few years ago according to this table.
Normal years are right around 3% which isn't significantly more than inflation.
Posted on 11/10/25 at 7:17 pm to Pintail
quote:
On a 50 year $250,000 mortgage at 6%. You have a whopping $2,600 in equity after 3 years. $4600 after 5.
True, but that’s not the whole equation.
You can make extra principal payments to pay down the loan way sooner and gain equity faster. Also, if your home appreciates in value you can sell it in 5 years and make a big gain.
Posted on 11/10/25 at 7:17 pm to cbree88
Why do what you describe?
Literally better off taking the down payment and putting it into an index fund than tying it up in a 50 yr
Literally better off taking the down payment and putting it into an index fund than tying it up in a 50 yr
Posted on 11/10/25 at 7:20 pm to cbree88
quote:
You can make extra principal payments to pay down the loan way sooner and gain equity faster. Also, if your home appreciates in value you can sell it in 5 years and make a big gain.
I agree and you probably would make the extra payments but 99% of the population would not. And appreciation is also a gamble. What if your house depreciates in value? Just roll that into the next 50 year mortgage you get?
This post was edited on 11/10/25 at 7:30 pm
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