this post was submitted on 11 Nov 2025
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Economics
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It's insane that a lot of articles are making the comparison assuming interest rates are the same, which will not happen. It's a paltry monthly payment decrease at the expense of a massive increase in overall loan cost.
This has to be something the banks want packaged to seem like they're doing everyone a favor.
What would you think would happen with interest rates? The example I posted forecasted an increase due to increased risk. Would you think it would go down or stay the same?
I'm agreeing with what you shared. Many articles on this topic instead provided monthly savings assuming rates would not change for a 50 year term.
You actually bring up a good point. Would banks be willing to even do 50-year fixed rates? You know they’re seething with the number of people that locked in <3% fixed rates a few years ago. Wonder if they’d force something like a 20/30 ARM.
Over 50 years? They’d love to do a fixed rate. Hell, a low fixed rate.
The average first time homebuyer age is 40 now.
Most people will die before they pay off a 50 year mortgage. They will suck us dry with the interest and just when we start to make meaningful principal reductions we die; the estate defaults, the bank foreclosed and they “rent” the property to the next sucker, starting from an even higher valuation.
Owning your own home is no longer owning with this plan. It’s renting with extra steps and cost.