Latest / Earn Your Leisure / Trump’s 50-Year Mortgage Plan: Smart Opportunity or Trap?

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Trump’s 50-Year Mortgage Plan: Smart Opportunity or Trap? · Earn Your Leisure

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  Speaker 2: All right, let's talk about this on Donald Trump's proposed
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  Speaker 2: plan for a fifty year mortgage. Not the first time
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  Speaker 2: of this something like this has been said, and it'll
• 0:55
  Speaker 2: take other steps for this to actually be able to
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  Speaker 2: be implemented. But like all things, you know, he just
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  Speaker 2: went on social media and just made a true post,
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  Speaker 2: a true social post post. It got people buzzing and
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  Speaker 2: talking about it, but I mean also a mortgage mistakes.
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  Speaker 3: I even hate the idea of the thirty one that
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  Speaker 3: got enacted, but also too in combination when the falseter
• 1:19
  Speaker 3: at the highest level on credit cards, they're thinking about
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  Speaker 3: having a fifteen year card note. I hate to sound
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  Speaker 3: like Dave Ramsey, but a fifty year mortgage and a
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  Speaker 3: fifteen year card note is absolutely insane.
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  Speaker 2: Well, hear me out. Here's a thing. Here's a thing.
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  Speaker 2: Most people stay in the house for the average of
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  Speaker 2: eight years, I believe, maybe maybe less. So very few
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  Speaker 2: people are staying in a home for thirty years. Right
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  Speaker 2: in real estate. Real estate has been appreciating over the
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  Speaker 2: course of time, right, and it's probably going to keep
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  Speaker 2: appreciating because there's a housing shortage, all the stuff that
• 1:58
  Speaker 2: we talk about all the time. So, okay, people can't
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  Speaker 2: afford to buy a home right now. So if you
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  Speaker 2: get into a thirty year mortgage, the downside is that
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  Speaker 2: the upside for a fifty year mortgage as opposed to
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  Speaker 2: thirty year mortgage. At the fifty year mortgage, if you
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  Speaker 2: have the same interest rate, you're paying less. You're paying
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  Speaker 2: less money monthly. The downside is that you're paying more
• 2:24
  Speaker 2: money over the court of time because you have more interest,
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  Speaker 2: more interest that you're paying right, So you're paying almost
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  Speaker 2: twice as much over the course of time. But if
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  Speaker 2: your plan is not to actually stay in the house
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  Speaker 2: for thirty forty fifty years, which majority people are not anyway,
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  Speaker 2: well you can actually now maybe potentially get into a
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  Speaker 2: house at a lower monthly payment which makes it more affordable,
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  Speaker 2: get your feet on the ground, build up equity in
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  Speaker 2: the house, sell the house, have a lump sum profit
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  Speaker 2: that now you can you know, create more wealth with.
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  Speaker 3: That sounds good in theory, but the thing, the fact
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  Speaker 3: that they will leave it out is unstable government ruling
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  Speaker 3: currently in the United States of America. Like prior to
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  Speaker 3: that money being printed in COVID wouldn't be a bad idea,
• 3:23
  Speaker 3: but also too, if you if you have a house
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  Speaker 3: that's three hundred thousand, which is that's hard to find
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  Speaker 3: now in most major cities, you're probably end up pending
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  Speaker 3: like one point two million dollars once you add up
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  Speaker 3: interest if you haven't for the life cycle of the loan.
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  Speaker 3: And if you're married, that was over to the person
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  Speaker 3: that you're married to, correct.
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  Speaker 2: One hundred percent. But but but opportunity course, the money
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  Speaker 2: that you're saving you can be investing.
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  Speaker 3: Good point. I want to be clear though, at fifty
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  Speaker 3: year mortgage only benefits the banks because even the every
• 4:00
  Speaker 3: person should have a home. That was a banking product,
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  Speaker 3: marketing idea. It wasn't for the benefit of the city
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  Speaker 3: of the United States of America. Now, will most people
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  Speaker 3: invest the difference? No, they're gonna go jet the holiday.
• 4:13
  Speaker 3: Most people, maybe like the talented tenth or fifteen percent,
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  Speaker 3: will probably invest the difference, but most which is a
• 4:20
  Speaker 3: great idea. Whatever you put into your mortgage, you should
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  Speaker 3: be putting them out minimum into the market. But most
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  Speaker 3: people are going to take the difference and do lifestyle shit. Unfortunately,
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  Speaker 3: So you're coming from a logical standpoint because you're a
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  Speaker 3: logical person. Most people are very emotional, not logical. Yeah.
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  Speaker 2: Simple, Once again, that's why you gotta play this both game. This,
• 4:42
  Speaker 2: this whole game is it's a it's a game, and
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  Speaker 2: that's what you gotta play this both game. You gotta okay,
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  Speaker 2: I'm I'm gonna do this. To do this, what's your
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  Speaker 2: next move? You gotta think about three moves ahead. If
• 4:56
  Speaker 2: you mind a hat, don't go into it. Don't go
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  Speaker 2: anywhere without knowing the exit already. And if you don't
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  Speaker 2: know the exit, you are the exit so don't go
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  Speaker 2: into a house without thinking about when you're gonna sell
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  Speaker 2: a house. Just like a stock, right, we always say, okay,
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  Speaker 2: you should hold the stock for ten years or if
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  Speaker 2: you're going too an options trade. You know when I
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  Speaker 2: think you gotta have the same approach in real estate.
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  Speaker 2: I'm gonna stay in this house for ten years maximum.
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  Speaker 2: I'm gonna stay in this house for five years if
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  Speaker 2: I can get a really you know, I anticipate based
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  Speaker 2: off of the area, the current climate is gonna appreciate
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  Speaker 2: over the cost of time. I'm gonna take this money
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  Speaker 2: go to Ghana. I'm gonna make sure that they got
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  Speaker 2: a nice kitchen because I know that that's gonna help
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  Speaker 2: the value of the house on the resale. I'm gonna
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  Speaker 2: make sure that the floors are a certain material because
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  Speaker 2: not even thinking about myself thinking about the next person
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  Speaker 2: that's gonna buy you. You got to think about the
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  Speaker 2: next person that's gonna buy your house. Why while you're
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  Speaker 2: putting your house together, Yeah.
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  Speaker 3: Gotta have some innovation, and that's when that teen of
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  Speaker 3: life cycle comes to don't undated, so you have to
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  Speaker 3: do all the repairs. It's a lot of things to consider.
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  Speaker 3: But if they pass this fifty year thing, it won't
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  Speaker 3: be for far benefit. It won't be far benefit earners.
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