Ramit Sethi tears into a proposal for 50-year mortgages, calling it a tactic by politicians to keep housing prices inflated. Longer loan terms let people buy homes they can't actually afford, and it's one of the worst ideas he's heard.
I see this headline, Trump wants to have 50-year mortgages, or at least that's being floated. I just— I got to get your take on this. What do you think?
Well, what do you say to pathetic politicians who simply want to at any cost keep the price of housing going up? What do you say to a government that essentially says to people, hey, if you can't afford a $450,000 Rolls-Royce, how about we spread those payments out over 50 years? And how do you reconcile that with the public that has the number one religion in this country being homeownership, who many people jump and say, wait, lower payments sounds good to me. We have a very bad policy here, very bad recipe for the average American consumer. It's one of the worst policies I've heard in recent years, and that's really saying a lot.
