Average age of a first time homebuyer is now over 40. Even at a reasonable interest rate, most buyers would die before they actually own the house.
As intended
Can’t pass it on to your kids when the bank forecloses on it
Were not enough boomers taking them up in reverse mortgages?
Because that’s where all my “generational” wealth went. “We can’t take it with us Jimmy” though we did, in fact, take it from those who came before.
So basically you won’t own shit.
The year I turned 40, was the year I moved into my first non-rental property.
I’m living proof that shit is fucked up
I’m turning 40 in a few days. I finally moved into a crazy beat-up fixer-upper/possible crime scene about 3 weeks ago.
I’m a couple of years older and JUST escaped renting. It’s ridiculous!
Welcome to the club.
What percentage of your income now goes to your mortgage payment? For me, it’s like 110%… But I have help, so my share is only like 35%
It’ll actually work out better for me since I currently live by myself and pay all the rent and utilities, and I’m buying with my partner so I’ll finally be able to share the load 😀
Late stage capitalism demands that you will own nothing.
I know someone living in the Netherlands (home of Lemmy.world!) that told me they had interest only mortgages that didn’t pay toward the principal and that this was common over there. It seems like these new 50 year mortgages in the USA are a step going that same way. Anyone from that area confirm this?
At that point, the bank is buying the house, they’re just renting it to you for a very cheap rate, with the stipulation that you’re responsible for all of the maintenance and etc. The “purchase” is just you entering into a long-term rental agreement.
Without the benefit of renting. Hell don’t forget home insurance.
Screw .world
you…realize thats not only where this Lemmy Community is…but also your user account, right?
Yep.
Nothing is stopping you from moving to another Lemmy server and blocking .world entirely. You have to find some value here if you haven’t done that already. If you hate it so much why are you still here and posting instead of on another server with other non-Lemmy.world communities?
Because I’m lazy
Why does he suddenly have vampire teeth
Probably because it’s a cropped section of a shitty AI upres of a video still, here’s an original.
It’s from 2012 when the NASA JPL team did a successful first-ever “rocket crane” landing to get the Curiosity rover onto the surface of Mars. It was actually a really touching / exciting moment, there’s lot of other photos out there of the team hugging and celebrating.
So I did the math. A 30 year fixed and a 50 year fixed have a monthly payment difference of $1.
What the absolute fuck.
Because for the first lot of years you are paying basically 0 principal
I owned my first house for 19 years, which was purchased in the fall of 2006. We sold it for the exact same price as we paid for it, and barely came out ahead. I know it was poor timing, but the idea of leaving a home and using it as part of your retirement income is a lie. The banks are laughing all the way to the bank.
Poor timing? You bought at the absolute peak of something known as The United States Housing Bubble. Your experience is not typical. You’re one of the unlucky people who had the absolute worst timing possible.
The idea of using a home as part of your retirement should be a lie, but unfortunately for the vast majority of people it isn’t. The world would be much better off if people only got what they paid back when they sold their houses. But, the reality is that most people have been absurdly lucky and their homes have been going up faster than all but the best stocks on the stock market. You just happened to be someone who jumped on the ride at exactly the wrong time.
What?
Some random numbers that are of course VERY variable, but I just ran the calcs with 400k, 5% down, 6% APR for 30 and 50 years
$2648 for 30 years $2369 for 50
Now that is of course not a great deal, presumably you’d also get a little better rate for the longer loan (more points) but it’s not a dollar.
Edit: wait you’ll get a better rate for the shorter term loan, so this will probably further close the gap. Still not to $1 surely
Yeah I compared some numbers and guessed a plausible interest rate for the 50 year based on the 15 vs 30 year interest rates at a couple of real banks near me
50 years at 6% with 5% down on 200k (fairly plausible for a decent home where I live and realistic for a first time home buyer who 50 year mortgages are clearly catering to) is 1k/mo almost exactly
- 30 years at 5.85% is 1,121/mo
- 20 years at 5.75% is 1,334/mo
- 15 years at 5.50% is 1,553/mo
So the difference is pretty small on a realistic first time home buyer’s home, but having been on the edge of approval for a home loan before that $100/month can absolutely be the difference between getting the home now and having to wait another 2-4 years depending on markets. In my case they assumed my insurance would cost more and that actually made all of the difference in my home loan application because that shaved about $100 per month off
One interesting side note, one of the local credit unions I looked at offers different interest rates depending on the value of the loan! For a 30 year fixed loan they offer the following rates:
- 800k or less: 6%
- 300k or less: 5.875%
- 200k or less: 5.875% (the APR is lower for this one so presumably the origination fees are lower)
- 100k or less: 5.75%
So yeah that’s new! I’ve not seen that before!
So that’s a great picture I think for the difference between the loan durations.
I of course think the real problem is that average people might need a 50 year loan to barely pay for a house these days. But it isn’t “nothing” between the terms, it does help in the super short term
I bought a fairly cheap house and paid it off as fast as I could.
Could I have made more by investing that money instead of shoving it into a mortgage? Maybe.
But you can’t live in an investment account. When the markets take a shit, you don’t lose a room from your house. And when it’s paid off, your outgoings are basically food, electricity and internet.
Don’t forget friggin property taxes
I’m gonna be dead in 20 years, so I’m so sorry to have to turn this down lol
They’re considering offering a 50-year mortgage product to a market where the average first time buyer age is 40. Like no joke they’re aiming to lock people into a mortgage that would cost more per month than renting the same property until they’re 90.
they’re aiming to lock people into a mortgage that would cost more per month than renting the same property until they’re 90.
How do you figure that?
Rents are already higher than mortgages and the whole point of the 50 year mortgage is a lower monthly payment, but okay yeah I’m the idiot.
Me too bro, me too.
Such a stupid, stupid society.
I’ll take a 90% 1,000 year loan please.
(hint: it would be over $30,000 per month payment)
I’ll counter with a 100 year 2% mortgage
I’m pretty sure interest only mortgages already exist in some places.
Isn’t that just renting?
Almost, it’s just now you also have to pay for renovations and stuff yourself.
You do get to keep any growth in the value of the property too
Or eat any loss in the value of the property
translated: you get to fleece the next person who wants to own a house
define “keep” if you cant ever put your name on it
deleted by creator
Like stocks, and art, they’re only as valuable as what people will pay for them.
If you want a shelter, you can use sticks and leaves in the forest and build something halfway decent at least. If you want a building to call your home, pay up dickhead.
Meanwhile, people who should be buying are renting, people who should be renting are in airbnbs or living in their cars, and the family dwellings are owned either by some jerkwad who wanted an income property, or a corporation that just felt like owning more land because they could.
I’m so proud of our society. Such progress! Capitalism is great!
If you want a shelter, you can use sticks and leaves in the forest and build something halfway decent at least.
Wrong, someone owns the forest and your encampment will be destroyed upon discovery.
At least cars are considered a valid housing choice these days, which is why car prices are rising.
Honestly, I thought it is actually not allowed in a lot of states to live in your car.
Is the image AI? The face of the guy to the left is kinda weirdly focused.
I think it’s a famous photo of folks at NASA celebrating but it does look different. You might be right that this one’s been touched up or even fully generated by AI as the depth of field is just all over the place in a way that cameras don’t do. Also some funky compression artifacts that don’t really look like compression artifacts (which I’ve seen AI image generators add generate fake compression artifacts to generated images before)
Yeah it’s a cropped AI upres of a video still, this is the original.
It’s the Curiosity Rover team celebrating a successful world-first rocket crane landing.
Bank workers are, at best, getting a small bonus when you sign that mortgage. Your fellow worker isn’t the enemy.
The Nürnberger defense.
Yeah every commissioned salesperson you don’t like is literally nazi ss. Go off, you galaxybrained god.
Generalizing and nazifying doesn’t actually make your bootlicking sound reasonable.
Being able to tell the difference between a fellow worker and a class traitor isn’t bootlicking!
I wasn’t even the person who generalized and nazified, the comment above me did. What in the actual heck, buddy?
I’d like to differ. They are the ones selling you this slavery contract and probably don’t mention the impossible to deal with interest.
A bank worker who is not your enemy would suggest you to switch banks or give you a reasonable contract. Of course depending on bank they might lose their job over the last one.
No, it’s mean that the issue is not the workers, but the bankS. Or to be be even more concrete : the system that produce institutions with the function of bank. Opposing to those workers would not make a change; maybe you could make them fired, and others could take the place, but our choice wouldn’t make much difference compare to those of the employers in the bank industries. We could argue that opposing to one bank is the same; at most it could bankrupt (ironically), but other bank would take they function.
That why this is the whole industry we shall oppose to, to against one bank, but against all of then. This is why people in revolutionary union organize by industry, and not by firm or professions. Helping workers in the bank industries getting less hour/day, less harassement and better stability would make the situation where they could diminish or abolish the predation of their employers against others (that are not only customers). We couldn’t expect solidarity from people we are not solidaire to.
This is not about right or wrong, this is about effectiveness.
More comfortable working conditions for slave traders! It’s not their fault! Blame the slave industry… \s
That’s ironic, because enforcing your moral code on others was what allow slave trades.
But I will conform to you point of view for the sake of argument. Let say the problem of slave trade is “that’s unethical” If giving “more comfortable working conditions for slave traders” would abolish slave trades, that would unethical to not giving their more comfortable conditions
These are the financial professionals that normal people should be able to trust to make important decisions.
I mean… They’re salesmen more than trustworthy professionals.
I see your point but the main issue is that nobody should ever trust the seller of anything to give them the info they need.
People should only ever trust trustworthy independent third parties… But those are hard to find.
I really don’t know what the solution is besides getting a better education, and I don’t mean a crap degree, I mean some more tangibile subjects in lower levels of school. I don’t blame them lightly, but people that accept this kind of thing aren’t the brightest.
No, they’re not. A lot of them don’t even have a degree in anything.
Your personal financial advisor is a person you should be able to trust with your important financial decisions. They guy at the bank handing you a contract to sign is an employee with a script on rails, a manager, and a commission structure.
In a better world it wouldn’t be like that but in a better world I don’t think I’d be going to a bank in the first place.
What kind of wacko lib upvotes this nonsense?
Banks are capitalist AF. Literally the heart of capitalism.
Pretty disgusting to hear these leeches framed as “workers”.
There’s literally no work involved in collecting mortgage payments. That’s why it’s called “passive income.” That’s the whole point of hoarding land and housing.
The guy who facilitates your mortgage contract isn’t getting your mortgage payments. The corporation that employs them is. The guy is making a wage or maybe just an hourly salary, plus commission.
By your logic, the checkout worker at costco is skimming off your wages to gate your access to food and clothing. The only difference is that you wouldn’t personally object morally to that line of work, but your personal morality isn’t a class distinction.
All companies are “capitalist AF”. It’s not just banks. But even a sleezy car salesman who is trained to convince you to sign an extortive lease isn’t oppressing you. He isn’t betraying you at a class level. He isn’t the one getting your monthly payments. His plight is exactly the same as yours.
This isn’t “wacko lib”, it’s literally Marx. And if we can’t understand that and stomach the differentiation, we will forever collectively stay oppressed.
30 vs 50 year mortgage at 6.25% interest rate on a $450,000 home:
30 year: $2771 per month and pay $547,000 in interest over loan duration ($997,000 total)
50 year: $2452 per month and pay $1,020,000 in interest over loan duration ($1.47 million total)
So for the extra cost of $319 a month ($114,000 over 30 years), you can save $473,000 by going with the 30 year loan, and be done 20 years sooner.
Sourced initial figures from this cnn article: https://www.cnn.com/2025/11/11/business/fifty-year-mortgage
I would rather eat my own children than sell them out to the future the banks have in mind.
These people have abandoned humanity.
These people have abandoned humanity.
Well fucking said.
I can’t believe this is real.
Home ownership out of reach? No problem, just never own a home. Bing bang boom.
I’m European so I’m out of the loop. Do you actually have 17% interest rates? I’m getting 2% over here.
Thankfully no. I think they’re more like 5.5-6% currently. Back in 2020 I managed to get a 2.375%.
A mortgage that lasts longer than your career is how you build generational debt.
