Usually they go buy a bigger more expensive house starting the bullshit all over again
40 Year Mortgages, have we discussed this?
- Thread starter doe moe
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That’s because most people are idiots. There is no reason to do this other than to impress people by buying bigger and fucking yourself.
Yep. And on top of that, folks were out here telling people to pay off debt and be debt free. No! That $300 a month payment on a $40k student loan from 20 years ago is chump change. $300 ain’t the same $300 it was 20 years ago. I’m not an accountant but I saw this shit coming down the pipe in ‘17. Get in the game or get priced out.
It’s why I go back-and-forth on buying a house right now. I have good credit. I have good savings but I have no children so yeah. The one regret I have in life is not having children when I was younger… a few women who I dated, wanted children and I did not want children and that relationship ended. There is three women from my past. I wish I had children from, but I thought I would stay young forever…..bullshit. But my mother is happy because I have six sisters and most of them got a ton of kids.
Buying bigger is mainly the younger crowd in a small house. They probably want bigger due to a growing family.
But yes, if they are buying bigger just to floss when they can't afford it that isn't good. Lol.
These numbers are from 2015
Exactly. It's really important to live within your means. Fuck what anyone else thinks. Especially in markets wherein real estate prices are way out of touch. Was saying in the Real Estate / Bursting thread ... place I grew up in my parents bought in the early-1980s. It's a 3-bedroom, 2-bathroom built in 1959. Modest place. My mom sold it in the spring of 2001 for $318,000. The new homeowners sold it at a loss in 2004 for just under $198,000. The assessed value of the home as of July 2022 is just under $1,800,000 now.
* Keep in mind the "building" value is just under 60,000 ... and the land / lot value is the rest. What the fuck?
It's a 60+ year-old home that needs plenty of renovations still. Think about how much the bigger, better, modern places are going for ...
I pray for you cats that listened to the never buy crowd daily.
Some of you will never own homes cause you listened to these assclowns here.
Some of you will never own homes cause you listened to these assclowns here.
That is why you pay extra towards your principal, or twice in one cycleI can barely imagine paying on something for 30 years, let alone 40. If you think about it, the average age of the first time homebuyer was 36 in 2022. 76+ years old making your last mortgage payments?!? Life expectancy is only 78-79. Fuck...
U.S. Life Expectancy (1950-2025)
Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life.www.macrotrends.net
not a good look
how many ppl going to see the end of those of the mortgages and eventually own their homes
i am not a financial genius but i am always blown away by family & friends that re-finance to lower their rates and payments but going back into 30 years. Everytime I refinanced I knocked years off
and dont get me started on reverse mortgages. Unless you retired living hand to mouth why would you give your house away after passing away
how many ppl going to see the end of those of the mortgages and eventually own their homes
i am not a financial genius but i am always blown away by family & friends that re-finance to lower their rates and payments but going back into 30 years. Everytime I refinanced I knocked years off
and dont get me started on reverse mortgages. Unless you retired living hand to mouth why would you give your house away after passing away
@LordSinister
What's crazy too about real estate ... I was doing the real estate search for 6 months or so. From the fall of 2008 into the first quarter of 2009. Looked in various districts ... from new places to those that were 30 years old or under. Trying to figure out what was out there. Saved liked hell from around 2004 - 2009 ... and even then buying a place I was stressed the fuck out and felt like I was overpaying by quite a bit. The assessed value now is more than double what I paid. Real estate ... headaches, man. The biggest purchase(s) you'll ever make.
What's crazy too about real estate ... I was doing the real estate search for 6 months or so. From the fall of 2008 into the first quarter of 2009. Looked in various districts ... from new places to those that were 30 years old or under. Trying to figure out what was out there. Saved liked hell from around 2004 - 2009 ... and even then buying a place I was stressed the fuck out and felt like I was overpaying by quite a bit. The assessed value now is more than double what I paid. Real estate ... headaches, man. The biggest purchase(s) you'll ever make.
Owning a house is not for everyone. Even if you have a lot of money sometimes you can fuck up shit if you don’t maintain your house correctly. If you have a little change saved up and your credit is good, please go get a house, but if you don’t have your shit together, don’t get a house.I pray for you cats that listened to the never buy crowd daily.
Some of you will never own homes cause you listened to these assclowns here.
At this point in the market you played yourself if you waited. High ass interest rates, over priced housing and a shaky job market.
I am going to agree with you that I should have brought something in the early 2000s but right now in 2023 I don’t want to deal with the hassle.
I am in Alpharetta, so that should answer your question
Its high as hell.
I am still going to try to get into the real estate game.
Living in a townhouse now. Locked in at ~2% interest. I want to get some rental properties to supplement my income, but the interest rates are wild.
I have extended family that did that shit.
Refinanced for 30 years to get a lower payment, are only making minimum payments, will be 100 years old by the time that shit is paid off, never will move to downsize, and the kids won't be able to afford the payments.
I hear you on that. If I had more money back in the late-2000s I would have liked to get a rental property for supplemental income. Seeing how prices have climbed over the years ...
My biggest fear is this shit is going to come crashing down in the next few years they cannot maintain this, especially when white people cannot afford it.
I was looking back at the assessed value statements for this place over the years. First handful of years it's nothing surprising. The same. Up a bit, down a bit, up a bit ... pretty stable. Once the values started to climb ... you're looking at +18, +20, +23% on assessed value. There were a few years it dropped off ... but not by much (say 5%) ... it's all a bit much. A lot too much, really.
In Florida they gonna need 50 year ones that their children can finish paying off when their parents die....
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That's why I'm glad that I bought my crib in 2003, right about a month before prices started to rise.... and I bought my six family in 2007..... it was valued at $500k..... now I've had offers for as much as $850k.... I get about 15 or more calls a week trying to buy it... I'm now getting offers to buy the two family that I live in
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Exactly, the lender is taking the most risk and this will only be for first time buyers. Most borrowers will refinance away from this as they build equity.
My current lender does not sell loans. I don't like my loan being sold to some bullshit lender with poor customer service.
Odd thing is when you messing with configurators on cars starting 50k or more. The "estimate my payment" defaults to 84 months!!! That shit is WILD!!! Thats how automakers are designing their pricing points now. Just make the banks extend them to 7 years, they'll buy it. Todays gen don't see debt as shackles like older folks do. They'll line right on up for this 40 year mortgage to keep this economy of buying and selling going.
Damn. Thanks for the G2. I can see why people are falling for this now. A lot of folks ain't trying to save for 5 to 7 years for a down payment or don't make enough to save that much. That interest rate is probably going to look crazy though.
I guess if they got into a better financial situation later on they could refi to a shorter mortgage and hopefully better rate.
Whatever mortgage term you have, paying extra towards principal will save you $$$ over the length of the loan. We had a 30 yr fixed, but paid like we had a 15 yr.
Get a mortgage spreadsheet to track your payments, principle reduction and interest saved. The visualization will keep you motivated to drive that balance down.
Get a mortgage spreadsheet to track your payments, principle reduction and interest saved. The visualization will keep you motivated to drive that balance down.
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This is exactly how I paid off my 30 year mortgage in 10 years.
Is this new? This isn't new. The only thing good thing you can hope for is that the homeowner’s next of kin isn't interested in selling the property as the casket is lowered into the ground.A society of long-term debtors.
I'm about to start investing in those shipping container companies, or the folks that are 3d printing houses.
Unless there was some sort of major change in the immediate area of that home that can increase market value at that kind of rate, there's no way a house that is over 60 years old that sold for $198k in 2004 and still needs 'plenty of renovations' is now worth $1.8 million.
No way
I mean, you already provided the answer. Location, housing shortage, supply/demand...
Hell, DC (gentrification) and places like old town Alexandria, VA probably saw this exact growth rate.
Fuck a 40 year mortgage and a 7 year car loan! They want you to be a slave.
Lmao. Yes, it is. The house should be worth that much. What are your neglecting to calculate is that wages have been suppressed for 40 years.
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