Been doing 40 year modifications and people normally accept them. The thing is, some people are willing to pay that extra 170k to own a home versus giving that 170k to a landlord. I have no other thoughts on 40 year mortgage.
Federal Housing Administration greenlights 40-year mortgages
- Thread starter bnew
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UWasntThere
Superstar
I know a guy that just bought a 210k house literally next door to ohare and has a $2100 mortgage. The planes nearly shake the house.
bourgeoisie tall freak
Superstar
yeah i don't think it's as doom and gloom scary as posters make it sound. as long as it includes money saving tools like refinance, recast, no prepayment penalty etc. then it's up to people to make it work for them
for example, i wouldn't really having a problem accepting a 20% interest credit card if i know i'm not using it or paying off the statement balance. certain terms can become irrelevant in effect.
#message!
This site is never an indication of the average American. until recently(Covid), people were doing modifications and restarting their loans over just to bring their accounts current or reduce payment which means there are a decent amount of people out here that could be paying for a mortgage for over 50 years.yeah i don't think it's as doom and gloom scary as posters make it sound. as long as it includes money saving tools like refinance, recast, no prepayment penalty etc. then it's up to people to make it work for them
for example, i wouldn't really having a problem accepting a 20% interest credit card if i know i'm not using it or paying off the statement balance. certain terms can become irrelevant in effect.
#message!
shyt happens. I’m glad everybody on this site are financial gurus but the average American isn’t.
Ok, remember this 40-year loan is supposed to help those who normally could not afford a 30-year loan. That is what Fannie Mae is proposing to help them. Those needing a boost to home ownership via this loan will most definitely deplete the tiny equity gained from a 3% downpayment.
I looked up the normal resale time period for first-time buyers and it is normally between:
According to a 2011 study conducted by the American Housing Survey and published by the National Association of Home Builders, the average buyer is expected to stay in a single-family house 13 years before moving. First-time buyers tended to stay in their homes 11 years, four years fewer than buyers who previously owned a home. First-time buyers also tended to be younger. These buyers are far more likely to move than those who have "traded up." They also are more likely to have purchased a starter home.How Many Years to Stay in a New Home Before Selling It
Real estate agents often suggest the "five year rule" when asked how long someone should live in a new home before selling it. However, when it comes to deciding how long you should remain in a home, why you wish to sell could be as important as whether you should.homeguides.sfgate.com
Do you have more up-to-date stats than the above?
How Soon Can I Sell My House After Purchase?
When you bought your house, you were probably planning on living there for a long time. But what if you need to sell sooner than expected? Read our guide.www.zillow.com
Reasons homeowners sell sooner than expected
Unless you’re a professional home flipper, you probably weren’t planning on selling soon after purchase. But there are plenty of reasons people end up selling within a year or two of purchasing:Job relocation: You may need to move for a career opportunity or to shorten your commute.
Health emergency: You may need to free up equity to pay medical bills or living expenses.
Buyer’s remorse: You might discover that the house you bought isn’t the right fit.
Family changes: A new family member, kids leaving for college or a death in the family can cause people to sell and find a better home for their needs.
Financial toll: Your mortgage payment might be too expensive, or your property taxes increased too much.
Hot sellers market: You may have gained equity quickly, and you want to take advantage of the opportunity to turn a profit while you can.
Most first-time buyers will definitely lose money following your advice. Sorry, but right now you seem to be a bit biased on this issue. Also, since you gave me your credentials, I will give you mine. I am an Economist.
IsThatBrothaMouzone?
Veteran
Exactly....saw this shyt and was likeSaves you $140 a month but adds $170k to the life of your loan
.If your mortgage payment went from $2,000 to like $1,000 or $1,200...I could understand why someone would sign for extra cash flow NOW while paying on the house longer. Then they can make much bigger payments as they add more income.
If you can't afford $2,044, you can't afford $1,944. If that $100 makes a difference...you bought too much house.
just the concept of this is an automatic L and clearly a sign that the current 15/30 set up is wobbly at best for many.
I don’t even wanna know what the rates will look like on some shyt that dumps an “extra” 170k into the picture.
fukk that. Find a way to generate the $140 a month. Sell crack for Franklin Saint if you have to.
jeez
I don’t even wanna know what the rates will look like on some shyt that dumps an “extra” 170k into the picture.
fukk that. Find a way to generate the $140 a month. Sell crack for Franklin Saint if you have to.
jeez
IIVI
Superstar
Additionally:
IsThatBrothaMouzone?
Veteran
America is bigger than India, and similar in size to China but with a fraction of the people.
Texas, for example....is 3x the size of the whole UK but has less than 1/2 the population. This "market" is bullshyt. Homebuilding took a hit from COVID but real estate in America makes no sense from a demand/supply perspective except for the fact that supply is always lower (somehow, some way) than demand......in a country that is relatively empty given how much land we have.
Affordable housing is in short supply while we have an excess of $1M+ cribs. Make it make sense.
Texas, for example....is 3x the size of the whole UK but has less than 1/2 the population. This "market" is bullshyt. Homebuilding took a hit from COVID but real estate in America makes no sense from a demand/supply perspective except for the fact that supply is always lower (somehow, some way) than demand......in a country that is relatively empty given how much land we have.
Affordable housing is in short supply while we have an excess of $1M+ cribs. Make it make sense.
40 Year Mortgage Calculator: Calculate Local 40-YR Home Loan Payments
There’s a 40 amortization calculator, point at a year their principal is reversing. Do you understand what what depleting equity means. You would need to owe more than what your home is worth. Also, I said I wouldn’t recommend this to people. Just pointing out that it’s not all doom or a depleting equity product.
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A proper country would burn these institutions to the ground. These people laughing in your face with an arrogant hearty laugh
Bingo
Can get a 40 year mortgage but can’t get a 20k business loan if you’re blacc even if you’re business is already making moneyshythole country
Yes, depleting the equity gained from the downpayment. Looking at what you gave me, why does it have a $50,000 downpayment? Did you put that in for a $250,000 house price? If so, were you not talking about the downpayment would be more like 3%, so $7,500 for that home? What you have shown is a downpayment that is 20%.
Those whom Fannie Mae is saying would be helped by this 40yr mortgage are definitely not plopping down a $50K down payment. So again, we are talking about people who are not professional home flippers.
my bad, my mind fuzzy on a dialysis machine. I meant $7,500
Those whom Fannie Mae is saying would be helped by this 40yr mortgage are definitely not plopping down a $50K down payment. So again, we are talking about people who are not professional home flippers.
my bad, my mind fuzzy on a dialysis machine. I meant $7,500
