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Japan has 100 year residential mortgages. Will it happen in the US? Maybe, who knows
Explain? Going crazy over what exactly?
Subject Expert
@A1 - Because it makes the monthly payment lower. Most people evaluate affordability based on monthly payments.
Sad state of affairs
Give your life for 4 walls and roof over our head. Indeed sad state of affairs
Mentor
Massive over simplification. You can put 4 walls and a roof around you by dropping $3kat home depot. People want more than that.
Mentor
How much difference is there in the payment between a 30 year and a 50 year mortgage? Since most of the early payment is interest and taxes anyway, I don’t see how the payment could really change that much.
Mentor
But the additional amount you can borrow is less than 10%. The mortgage costs at 10% are about the same (assuming 7% loan) but taxes and insurance will be more as the home value increases. So net maybe you can go from buying a $650k home to buying a $700k home with the same monthly payment. In exchange you will double the amount spent in interest. If the point is that you will only stay a few years anyway than why not buy Interest Only?
But you have to live somewhere. Paying off a mortgage is not going to happen to most of us. So we pay rent to the bank and build equity along the way. It’s all you can hope for.
Paying off a mortgage is not going to happen for most of us?
Just pick a house and keep it