re: This mortgage receipt is floating around on social media

I paid cash for my totally livable but in need of updating, especially kitchen and bath, house.

Classic 100+ YO Craftsman bungalow with 10' ceilings and heart pine floors, front rocking chair porch.

Purchase price plus reno will be in at less than $70k.

People don't want to do a little work to save a lot of money.

Huge project to take on by a 75 YO semi disabled woman. I even hired all the work done. If I could do it anyone could.

Yall old school with this talk of generational wealth. It’s now generational debt.

Correct SFP. Your side is supplying millions of broke arse illegals.

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Isn't there talk in the US of offering a 50 year mortgage? Bring on that housing bubble...

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That wouldn't be a housing bubble, it would cement the creation of a permanent debtor class. If anything, it would just fuel an eventual collapse of the economy as a consumer debt bubble fueled by this exploded (which would indeed cause housing to crash).

Let me paint you a picture:

First, we have the canvas of consumer credit card debt.



Next, we add a fluffy, high credit card interest rate.



After that, we'll spice things up with a growing dab of credit card delinquency rate.



That's what a potential consumer debt bubble looks like.

Along with all of that we have the return of student loan payments, which is being ignored by ~40% of borrowers. (caveat: Dept of Ed has said they won't report these to credit agencies as being delinquent until September 2024) We also have inflation remaining sticky, which means rates remain high longer (thus exacerbating issues as consumers have been trying to offset inflation on their credit cards).

This all sets up for that consumer debt bubble popping if/when we have a recession in the next 12 months. Having 50-year mortgages just means consumers would be more likely to walk away from them in such an event. I wouldn't be shocked to see hedge funds, large real estate companies, etc. snap these up at auction for pennies on the dollar then rent them out in perpetuity.

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Looks shady, how did they misspell premium, unless that's the Canadian spelling?

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Chinese mortgage company for a house purchased on Temu?

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Why in the frick would anyone in their right mind choose a variable rate??? I don't even know why the option exists

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The US is the only country that has fixed rate 30 year mortgage. In the UK and Canada the rates reset to market rate every 10 years or so.

The US government buys up the mortgages here via Fannie and Freddie to subsidize your 30 year fixed rate mortgage.

And they probably still think the net of purchase price and sales price is "equity."

Mortgage interest and property taxes have to be overcome before you have equity in a home.

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I paid cash for my totally livable but in need of updating, especially kitchen and bath, house. Classic 100+ YO Craftsman bungalow with 10' ceilings and heart pine floors, front rocking chair porch. Purchase price plus reno will be in at less than $70k. People don't want to do a little work to save a lot of money.

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Where is it located?

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variable-rate home loan after a mortgage extension to 63 years.

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Whoever does this literally deserves to be a slave to the lender for the rest of their days.

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don't forget property taxes

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and insurance....

Speaking of which, is there no escrow account on that mortgage?

Side note: I'd like to see a pic of the said million dollar house, and the family living there.