Bank workers are, at best, getting a small bonus when you sign that mortgage. Your fellow worker isn’t the enemy.
Bank Workers, Rejoice!
Submitted 13 hours ago by MTZ@lemmy.world to [deleted]
https://lemmy.world/pictrs/image/a08bbab1-f29f-4a7f-8923-ff86c0f1efba.jpeg
Comments
infinitesunrise@slrpnk.net 1 hour ago
Makeitstop@lemmy.world 13 hours ago
Average age of a first time homebuyer is now over 40. Even at a reasonable interest rate, most buyers would die before they actually own the house.
DioramaOfShit@lemmy.world 13 hours ago
As intended
kautau@lemmy.world 12 hours ago
Can’t pass it on to your kids when the bank forcloses on it
iAmTheTot@sh.itjust.works 13 hours ago
Late stage capitalism demands that you will own nothing.
partial_accumen@lemmy.world 13 hours ago
I know someone living in the Netherlands (home of Lemmy.world!) that told me they had interest only mortgages that didn’t pay toward the principal and that this was common over there. It seems like these new 50 year mortgages in the USA are a step going that same way. Anyone from that area confirm this?
KoboldCoterie@pawb.social 12 hours ago
At that point, the bank is buying the house, they’re just renting it to you for a very cheap rate. The “purchase” is just you entering into a long-term rental agreement.
nonagonOrc@lemmy.world 12 hours ago
I’m Dutch, just bought a home, and I’ve never heard of that. I personally don’t buy that story.
gergolippai@lemmy.world 10 hours ago
Dutchie here, nope. We are paying both principal and interest. Plus when i to it out, my mortgage was 102% of my home’s value. And as it stands, the bank owns my ass exactly until I retire 🤷♂️
greygore@lemmy.world 12 hours ago
Not sure if this is what they were talking about, but balloon mortgages are a thing here too. I can’t ever imagine considering one, but they exist.
ivanafterall@lemmy.world 9 hours ago
How would that work, even on paper? Not being a dick, just don’t understand. So it’s literally just, “you can never own this property fully?”
MystikIncarnate@lemmy.ca 9 hours ago
The year I turned 40, was the year I moved into my first non-rental property.
I’m living proof that shit is fucked up
TastyWheat@lemmy.world 1 hour ago
I’m a couple of years older and JUST escaped renting. It’s ridiculous!
ivanafterall@lemmy.world 9 hours ago
I’m turning 40 in a few days. I finally moved into a crazy beat-up fixer-upper/possible crime scene about 3 weeks ago.
Diplomjodler3@lemmy.world 12 hours ago
And then their kids keep paying until they die and still haven’t paid it off, even though they’ll have paid twice the original amount by that point. Whoever came up with this bullshit is probably right now buying their third yacht from the bonus.
gibmiser@lemmy.world 11 hours ago
30 year mortgage means you pay for the house twice with interest. 50 year mortgage means paying for the house 3x.
Fredselfish@lemmy.world 12 hours ago
So basically you won’t own shit.
MystikIncarnate@lemmy.ca 9 hours ago
Never did.
peoplebeproblems@midwest.social 10 hours ago
So I did the math. A 30 year fixed and a 50 year fixed have a monthly payment difference of $1.
What the absolute fuck.
kameecoding@lemmy.world 9 hours ago
Because for the first lot of years you are paying basically 0 principal
boaratio@lemmy.world 9 hours ago
I owned my first house for 19 years, which was purchased in the fall of 2006. We sold it for the exact same price as we paid for it, and barely came out ahead. I know it was poor timing, but the idea of leaving a home and using it as part of your retirement income is a lie. The banks are laughing all the way to the bank.
DioramaOfShit@lemmy.world 3 hours ago
With this math I just acquired a 10 year fixed for $1 more per month.
frank@sopuli.xyz 7 hours ago
What?
Some random numbers that are of course VERY variable, but I just ran the calcs with 400k, 5% down, 6% APR for 30 and 50 years
$2648 for 30 years $2369 for 50
Now that is of course not a great deal, presumably you’d also get a little better rate for the longer loan (more points) but it’s not a dollar.
buddascrayon@lemmy.world 6 hours ago
Don’t forget that on top of all of that you have to pay property taxes.
Dozzi92@lemmy.world 6 hours ago
I just question if the 50 is getting the same rate as the 30. Obviously, all else equal, math is math. Banks see that $300 savings as a potential extra $150 a month.
dejected_warp_core@lemmy.world 7 hours ago
This raises questions about the opportunity cost of $300/mo. It’s not a huge amount of money, but for some budgets, it might make a car payment or groceries possible. Or, if saved or invested wisely, would it tip things in favor of the 50-year term?
Korhaka@sopuli.xyz 7 hours ago
Why would anyone take one out in that case then? You can always overpay and pay it off sooner though.
the_q@lemmy.zip 12 hours ago
My favorite part of this whole 50 year mortgage thing is the shock that you’d pay like $1.7m for a $400k house over the 50 years while not batting an eye at paying $900k for a $400k house over 30. It’s even funnier because houses don’t have a set value, can change on a whim and have become a path to wealth instead of the necessity that is shelter.
The quality of the materials and the precision of the build has gone down while the prices rise, and everyone’s like “oh this sucks, but the market”.
BarneyPiccolo@lemmy.today 9 hours ago
At least cars are considered a valid housing choice these days, which is why car prices are rising.
HeyJoe@lemmy.world 9 hours ago
Honestly, I thought it is actually not allowed in a lot of states to live in your car.
ivanafterall@lemmy.world 9 hours ago
So that’s why PC cases have gotten so expensive.
MystikIncarnate@lemmy.ca 9 hours ago
Like stocks, and art, they’re only as valuable as what people will pay for them.
If you want a shelter, you can use sticks and leaves in the forest and build something halfway decent at least. If you want a building to call your home, pay up dickhead.
Meanwhile, people who should be buying are renting, people who should be renting are in airbnbs or living in their cars, and the family dwellings are owned either by some jerkwad who wanted an income property, or a corporation that just felt like owning more land because they could.
I’m so proud of our society. Such progress! Capitalism is great!
the_q@lemmy.zip 8 hours ago
“Like stocks, and art, they’re only as valuable as what people will pay for them.” Except this only takes into consideration what the rich will pay and that sets the “value”. I’m a people and my value for things is super low.
MystikIncarnate@lemmy.ca 9 hours ago
A 50 year mortgage will be a lot like renting. Because the bank will own your shit until you die.
danhab99@programming.dev 8 hours ago
That’s what we get for saying “why can’t I get a mortgage when I pay more in rent just bc my credit is bad”, the banks figured out how to rent properties to you.
manuallybreathing@lemmy.ml 3 hours ago
The american dream of home ownership is rooted in settler colonialism, and used as a tool to keep workers in debt and afraid to take risks organising
kryptonianCodeMonkey@lemmy.world 11 hours ago
Headline: Save 200 dollars a month with a 50 year mortgage over a 30 year!
Subtext: … and end up paying double the interest to us for the benefit, and die before your loan is paid off so we get to take the house back from your corpse, sell it on the cheap to a corporate real-estate investment firm (that we have stock in) for just enough to cover the remaining mortgage balance. They’ll turn your multi-generational family home into a shitty rental property or leave it empty to keep the rest of their rents high and your children get nothing cuz fuck em!
Pacattack57@lemmy.world 6 hours ago
A 350k house assuming the national average on taxes and interest rates comes out to just shy of 1 million dollars. Over 650k in interest. The payment is $1700 which to put it in perspective my home was 260k at 2.8% interest and my payment is $1830 on a 30 year mortgage.
titanicx@lemmy.zip 5 hours ago
I mean honestly good luck finding a 350,000 home. Even the homes that are 40 years old in my area are selling for 4 to 500,000. The new home build s are averaging 400 to $450,000 to start. So getting a home at $260,000 that you got would be a dream.
funkless_eck@sh.itjust.works 2 hours ago
I mean I bought a 2100ft² house on 0.8 acres in 2024 for 320k @ 5.5%, 11 miles put from the center of one of the 50 most populated cities in the US.
Not the best deal, not the worst, but definitely possible
jmf@lemmy.dbzer0.com 3 hours ago
You can still find sub 50k homes, but you will have to temper your expectations for the area and condition. Can’t be afraid to learn a few renovation tricks and get your hands dirty!
DJKJuicy@sh.itjust.works 9 hours ago
I can’t believe this is real.
Home ownership out of reach? No problem, just never own a home. Bing bang boom.
HasturInYellow@lemmy.world 6 hours ago
I would rather eat my own children than sell them out to the future the banks have in mind.
These people have abandoned humanity.
man_wtfhappenedtoyou@lemmy.world 3 hours ago
These people have abandoned humanity.
Well fucking said.
LemmyKnowsBest@lemmy.world 5 hours ago
So why do houses exist if nobody can have one?
Rooster326@programming.dev 4 hours ago
Corporations are people and they can have as many as they want???
Kolanaki@pawb.social 4 hours ago
Decoration.
WhatGodIsMadeOf@feddit.org 7 hours ago
They actually ended up getting married after that hug.
TankovayaDiviziya@lemmy.world 7 hours ago
We laugh at this, but the older generations still remember when the mortgage interest was this high. I don’t know where you guys are from, but there is an old news reel from the 1970s here in Ireland when young families at the time complained of “high” house prices of up to 72,000 pounds, with mortgage interest of 14%. The folks on social media had their jaws dropped on learning of how high the interest rate was, but how cheap the overall property value was back then. Now how much are those houses at the moment? They are now worth between €690,000 to €1.5 million. High valuation but the interest rate is down in proportion. In any case, only few could afford to buy houses due to inflation and wages haven’t kept up with it.
MrMakabar@slrpnk.net 12 hours ago
Anybody who believes a 50 year mortgage is a good idea, does not understand discount rates…
ivanafterall@lemmy.world 9 hours ago
Discount rates are one of my favorite things. But pretend I’m one of those dumbasses who didn’t do the reading…? What would you say to really put those fuckers in their place!?
Sabin10@lemmy.world 12 hours ago
A mortgage that lasts longer than your career is how you build generational debt.
UnderpantsWeevil@lemmy.world 12 hours ago
Subprime Rides Again, baby.
blarghly@lemmy.world 10 hours ago
Zeon@lemmy.world 3 minutes ago
At this point I’m just buying an RV.