The 50 year mortgage will never happen скачать в хорошем качестве

The 50 year mortgage will never happen

The 50 year mortgage was pretty stupid in my opinion. President Trump brought this out to counter issues with the affordability of housing and trust me it will do nothing to help affordability. I have owned many houses both for a residence and for investment and I have done both 15 year and 39 year mortgages. I want to make this as simple to understand as possible. If you do a 15 year mortgage your interest rate is lower than a 30 year mortgage. So now instead of 15 years difference let's go to 20 years difference. It stands to reason that the interest rate would be at least 1% higher than a 390 year term. Let's understand that lenders look at risk. Besides the credit score and your income and savings, they also factor in risks. Even if the difference is 1% higher than the payments will be basically the same for principle and interest. Also since interest is captured up front by the rule of 77s then paying down the mortgage will take a long time so equity build will also be slower. if the object is to create affordability and long term economic stability for a home owner then this makes no sense. I assume that this was Trump doing an off the cuff remark thinking it was a good idea but not consulting with people in the industry or trusted economic advisors. Let's just say that this idea is dead on arrival. Affordability in housing in the US is without question a real problem. Let's hope some ideas that really help is forthcoming. At the Virtual Real Estate team we specialize in new residential construction for real estate investors in the Oklahoma City and Tulsa real estate markets. TP know more about affordable new construction as low as $225,000 for a three bed, two bath, and two car garage email us at joan@vreteam.com.