Reply to Whats wrong with a 50 year mortgage?

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Reply to "Whats wrong with a 50 year mortgage?"

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[quote=Anonymous][quote]
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
The underlying problem is that we have not built enough new housing stock for years. Assuming overall affordability is the goal, this mortgage hack is not going to fix that.

Also its not going to make as big a difference in monthly affordability as the PP's calculations assume. Just like the 30 year mortage rate is &gt; a 15 year, a 50 year rate will be even higher than the 30.

And, even assuming banks and consumers adopt this at scale (a big assumption, imo), that would juice demand without increasing supply, resulting in even higher home prices.

I'd focus on reducing barriers/increasing incentives to build affordable housing stock.

--signed, an economist

Converting the mortgage interest deduction to a refundable tax credit (with an income cap) would go a long way to helping affordability and benefit first-time homebuyers.

Not without increasing supply. Address that first, then play games with payment affordability (if you still need them).

We don’t need to increase supply that much us population will start to decline within 30 years with the current immigration restrictions and deportations.[/quote]

Those immigration restrictions could change quickly. Same for deportations. Do you think they are going to let GDP fall?[/quote]

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