Federal Housing Administration greenlights 40-year mortgages.

[tay1]

This week the Federal Housing Administration gave the OK to 40-year mortgages. It's a move designed to try and make it easier for first-time home buyers.

The idea is to reduce monthly mortgage payments, which have been rising as mortgage rates go up.

Redfin.com reports over the last year, the average mortgage payment has risen 30% to a record $2,563 a month.

"Forty-year mortgage stretches out that payment over a longer period of time, so it makes for a lower payment, which is what a lot of buyers need right now," Gonzalez said.

Bankrate.com recently compared 30- and 40-year mortgages and found on a $312,000 loan at 6.85% interest, the monthly payments were $2,044 for 30 years and $1,904 for 40 years.

The extra 10 years also added more interest, close to $170,000 more, but in the short term, experts said it can make a difference, especially since many homeowners hardly stay in one house for 30 or 40 years.

"It's going to attract buyers struggling to put their money together for getting into a house, like a first-time home buyer, and it's great because it saves them from wasting money on rent," Gonzalez said.

Federal Housing Administration greenlights 40-year mortgages

This week the Federal Housing Administration gave the OK to 40-year mortgages. It's a move designed to try and make it easier for first-time home buyers.

www.wptv.com

 

[tay1]

TLDR: The Fed believes homeowners will be positively affected by saving $140 a month but adding $170,000 in interest over 10 years

'If it helps people get into a house, it's a good thing,' Sonsire Gonzalez, a real estate agent in Port St Lucie, says

 

[Based Jesus]

Buy a house I can't afford and be in debt for 40 years or buy a house I can't afford and be in debt for 30? Tough one...

 

[tay1]

Buy a house I can't afford and be in debt for 40 years or buy a house I can't afford and be in debt for 30? Tough one...

Imagine thinking $140 is a big enough difference to matter to someone. Cold thing is, a lot of people will inevitably go with the 40 year mortgage.

 

[noskey]

Lmao

 

[tr1ll]

Thats one of the problems with our government. Most of them have little to no idea how regular people live.

 

[uncalled4boy]

What A Finesse.

 

[tay1]

Thats one of the problems with our government. Most of them have little to no idea how regular people live.

People are gonna fall for **** like this though.

 

[17]

40 years to pay back 300k? no thanks
It may be beneficial in some circumstances but even if you only plan on being there for a few years there'll be no equity in the crib (depending on the market and location)

 

[oidreez]

so basically this really helps banks and landlords and people who already own a home , not the people they are claiming they want to help

 

[Bazooka]

 

[Mark Antony]

Sounds like a deal, thanks.

 

[17]

lawd have mercy

 

[MakeNTGreatAgain]

reminds me of the car loans that are going to like 72 months so people can fit the car loan in their monthly payment.
amerikkka is screwed mane

 

[Bazooka]

reminds me of the car loans that are going to like 72 months so people can fit the car loan in their monthly payment.
amerikkka is screwed mane

i did finance for dodge/ram for awhile.

Bruh we used to extend **** out to 94 months

 

[MakeNTGreatAgain]

i did finance for dodge/ram for awhile.

Bruh we used to extend **** out to 94 months

goddammn

on the other hand, this is good for people who want a lower monthly payment temporarily and want to payoff the loan in 15/20

 

[numbah1]

This is shameless and gross.

It shouldn’t take 15, 30, or 40 YEARS for any American to pay off their primary domicile. These are the symptoms of a broken country and failed leadership.

They finesse you left, right, front, and center. When will the people say enough is enough?

 

[Fozz]

Honestly wouldn't mind owning a home for me and the family rn.

Are there any good programs for first-time homeowner?

 

[Mark Antony]

Honestly wouldn't mind owning a home for me and the family rn.

Are there any good programs for first-time homeowner?

You live in HI right? I've browsed over there, how are folks even affording those homes?

 

[jpzx]

I won’t do anything under a 50-year.

 

[finessence]

I mean, people put here with $1500 car notes

People living in SF with 8 roommates paying $2000 each…

Nyers paying $4000 for a studio, mornings be delayed because they have to let the rats brush their teeth first.

We have 96 month car loans and 40 year mortgages now…

 

[Fozz]

You live in HI right? I've browsed over there, how are folks even affording those homes?

HI?! No, I live in SF Bay Area. But the question still applies lol

 

[aepps20]

Just wish we would address the problem (income inequality, unrealistic costs of living, low salaries, etc) and not the symptoms. Homes and pretty much everything are just too expensive (even renting is too expensive) but as a home owner I like that the value of my home is significantly more than what I paid for it but that prices others out.

 

[tr1ll]

Just wish we would address the problem (income inequality, unrealistic costs of living, low salaries, etc) and not the symptoms. Homes and pretty much everything are just too expensive (even renting is too expensive) but as a home owner I like that the value of my home is significantly more than what I paid for it but that prices others out.

Financial literacy should be thrown in there, too. Not only are there people who don’t know up from down, its people who don’t know advantageous it would be to learn the difference.

 

[Air Champa]

So If you start paying notes when you're 30, you'll be done when you're 70? No thanks.

If I were single I'd just buy a tiny home. Get that paid off in a few short years and tell these banks to shove it.