𝕾𝖕𝖎𝖈𝖞 𝕿𝖚𝖓𝖆

@ spicytuna62 @lemmy.world

Posts

179
Comments

413
Joined

2 yr. ago

I use Debian btw

𝕾𝖕𝖎𝖈𝖞 𝕿𝖚𝖓𝖆 @lemmy.world 16h ago

Or, as I've recently taken to calling it, GNUSS plus Linussy

16h ago

Vroom Vroom

Time to install PCSX2 and play some Gran Turismo on this puppy.

1w ago

The Cellussy

Cleavage, dude.

1w ago

Piano man

Piano-man, piano-man. Does whatever a piano can. Falls on crooks from real high. Squishes them. Kills those guys.

Look out. He is the piano-man

1w ago

Parking police

Mmmmm idk, I'll take my old beater Civic over any new Kia, Hyundai, Nissan, or Stellantis product.

Hell, just the fact that you can't buy a low trim Civic or Corolla with a stick shift anymore is kinda tragic.

The 90s are where cars peaked, and I will die on that hill.

1w ago

how you holding up?

Best part of driving a total bucket. You're really scraping the bottom of the barrel carjacking me.

3w ago

(Pseudo) Science

"Mom, I don't know that the peppermint oil on my feet and lemon juice in my eyes did anything to cure my measles, tetanus, or COVID infections."

"Nonsense, Bobby. You just need to give it time to work."

"Peggy, that boy ain't right."

3w ago

You just couldn't be satisfied with slow and easy

I've got just the poster. Nobody will ever suspect there's a hole back there.

3w ago

877-CASH-NOW

Tldr there is literally no reason for this product to ever exist. It mathematically makes no sense. Banks won't offer it. Investors won't back it. You'll have no incentive to take it.

The 50 year mortgage isn't just a bad product. It's a predatory product.

Interest is the cost of borrowing, plus a little extra tacked on for the capital the banks and investors tied up in the loan. Generally speaking, the longer you borrow, the higher your rate. It's usually better to borrow for as little time as you feasibly can because it's the double whammy of paying off that front loaded interest faster and clearing the payment from your own books sooner.

The thing with borrowing over time is that there's a diminishing return with more time. Assuming the interest is equal on a 30 year vs a 50 year mortgage, your payments go down maybe 15%. So assuming that $3,000 payment at 5% for 30 years vs 50 years, your 50 year payment is $2,538. Which sounds nice until you multiply payment amount by number of payments and find that the total cost of borrowing goes up >$442,000.

But you absolutely will not get the same rate on a 50 year vs a 30 year. It's too risky for investors to back it, no matter how you slice it. They'll want more interest on top of it if they do. So your rate might climb to 6.25% over the 5% you might have got on the 30 year loan. That changes the payment from $3,000 to $3,046.

Yep. The payment can be higher. Again, law of diminishing returns and higher rates because more risky.

So a recap. You're financing $558,845 after down payment, earnest money, closing costs, etc. With a 30 year term, you're looking at 5%. The payment is $3,000 a month so you ultimately pay $1,080,000 for the house. At 50 years, you're borrowing at 6¼ and paying $3,046 a month, so now the house costs you $1,827,600. Not only is your payment higher, but the house is ¾ of a million bucks more expensive! How generous!

This doesn't even factor in the extra 20 years of PMI you'll have to pay because if you have to borrow for 50, we all know you're not putting 20% down.

If you can borrow for 15 years, that's going to be the best way to secure yourself long term. But 30 year mortgages are overwhelmingly common because prices are too high. Even so, they're not a bad product.

But absolutely do not fall for this 50 year bullshit. The average first time buyer is in their forties now. Only a handful of us will live long enough to pay that off. You're probably better off renting for the rest of your life than taking a 50 year mortgage.

3w ago

FIRE EVERYTHING