Donald Trump Proposing 50-Year Mortgages Sparks Backlash

[Buddyzbuddy]

56. I'll take a 50yr mortgage fixed at 3% any day of the year.

Sure, not at 6% but definitely @ 3%. Your paying back a mortgage in 2076 with dollars valued in 2026. Inflation means your paying back with much cheaper money. Think about the price of things 50 years ago including the price of homes. In 1975 you could buy a 3 bedroom 2 bath home for under $30,000 which is now worth $750,000 more or less depending on location and condition.
So if you buy that same home today and use a very conservative estimate of 2% inflation your home might be valued at about $4,000,000 in 50 years.
Nobody says you have to take 50 years to pay it off. The interest is only charged on the principal balance. You could still pay it off in 30 years or less. The 50 year mortgage just helps you qualify at a lower monthly payment because it's stretched out over 50 yrs.
But there is no way a lender will make a 50 year loan @ 3%. But maybe %3 the 1st 5 years 3.5% for the next 5yrs, eventually ending up @6% for the last 10 years with the opportunity to refi at a lower rate in the future if lower rates are available.
I started @ 6.5% 28 years ago and now I'm locked in @2.9% for 27 more years. I'm paying with cheaper dollars. It's the one benefit of inflation.
Rich people never use their own cash if they can help it. Let cheaper borrowed dollars pay your bills. I plan on dying owing money on my home.
I am a retired Realtor after 27 years in the industry.