But don’t worry, you will be at moderate risk of the car breaking down before 10,000 miles and you can’t fix the part because it has been deliberately engineered so that mechanics can’t fix it and it has to be replaced.
https://xcancel.com/unusual_whales/status/1987985187918192870
I did some jank estimates and I think the 50 year mortgage thing would stave off the affordability crisis for about 10 years before we’re back to where we are now. Then back to the normal increasingly unaffordable housing. Then a total meltdown of material conditions when those loans start getting past 30 years and people become too old/sick to finish paying off their mortgages.
i mean, with current apr, 30 or 50 years doesn’t change that much shit deal no?
plus developers would just immediately increase prices even if apr came down.
That estimate assumes there’d be a one-time 40% decrease in mortgage/down payment costs, then prices grow at the same rate they’ve been growing.
It could very well be overly optimistic. I did say it was jank.
but is it kinda rolling credit, so first years are devoted mainly to paying interest anyway, so it doesn’t matter much that principal is spread out longer, the first year apr hard restricts you anyway (that say on 300k home you have to at least be able to pay say 21k in interest with 7% apr, independent of 30 or 50 years + principal a little bit, that part dependent) (without going into calculators, vibey based it would be like 8k vs 6k +21k, 7% drop or some shit)
which, assuming my vibey estimates in correct ballpark, the market will fuck in 2 years of rises as is.
Also, longer loans typically have higher interest rates. So…