The Plan to Turn Americans into Permanent Renters (50 Year Mortgage)

"The Federal Housing Finance Agency, the FHFA, under Director Bill PT is working on a proposal to extend the standard mortgage from 30 years to 50 years."

"And PT even said, 'We are indeed working on the 50-year mortgage, a complete gamecher.'"

"And President Trump supports the idea, and the pitch is very simple. It will lower monthly payments and make housing feel more affordable."

"Now, if you go with the 50-year mortgage, I mean, look at the interest that you're going to pay. You're going to pay $751,113."

"after 30 years of payments, a 50-year borrower was still owed $386,000."

"It doesn't fix home affordability. It actually makes home prices go up. And I'll tell you that this one is very important because, okay, if you have lower monthly payments, then what does that mean? It means that more people are going to qualify. And what's that going to mean? you're going to have more people bidding up home prices and then that's going to lead to higher home prices."

"from my perspective, I see this as a gift to the real estate industry, not the buyer. And you have to ask yourself, who's really benefiting from a 50-year mortgage?"

"Well, I've created a list. I mean, it's going to be realtors because, you know, realtors and brokers because they're going to receive higher commissions. And then you have the builders. They're going to sell more homes. And then, of course, the banks because they're going to be making much more in interest income, you know, on these mortgages at the expense of the borrower. And then also the investors because there's now going to be more demand. So who's going to win? It's going to be basically it's going to be Wall Street."

"Japan has tried this and it did not go well. So, Japan went through a housing crisis in the 1980s and 1990s. prices exploded and young people couldn't buy homes. Like, does that sound familiar to you? Like, of course it does. That's our situation right now. So, banks did the same thing. They did 50-year mortgages and then it turned into 70-year mortgages and then 100year mortgages. So, people literally passed their mortgage down to their children, the next generation."

"With a 50-year mortgage, look at that number. Over a million. 1,114,33 in interest."

"Fanny May and Freddy Mack generally do not buy loans longer than 30 years. So, if you want a 50-year mortgage to exist, then major laws and regulations must change. So, that would be a huge undertaking. Like, Congress would have to get involved. FHFA, they would have to rewrite rules and mortgage back securities would have to be redesigned, basically."