"The 50-year mortgage is getting bashed as irresponsible and favoring the bankers, which it does. But so do many other things - you could make the argument to ban legalized gambling, $200 jeans, and avocado toast so young people could better afford a home. But the 50-year mortgage only lowers the monthly payment by 12%, which doesn't provide enough relief for everyone to choose it."
"This is the real affordability game-changer - if only we can get it passed. The ensuing panic among sellers would be good for an immediate 5% to 10% decline in home prices, and a lingering effect over the next 10-20 years as the boomer generation clears out. Combined with more loan choices and lower rates, we'd get some actual relief:"
Proposing 40- and 50-year mortgage options aims to expand borrower choice beyond current terms. Requiring finance or mortgage management classes for applicants is suggested to improve consumer understanding. Critics argue a 50-year mortgage favors lenders and offers limited monthly payment reduction—about 12%—so it would be a modest sweetener rather than a broad solution. A larger affordability impact could come from measures that depress prices, such as market reactions that produce a 5%–10% immediate decline and longer-term effects as older homeowners exit. Making existing mortgages assumable, adding loan options, and lowering rates are presented as combined steps to deliver real relief.
Read at Boston Condos For Sale Ford Realty
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