The 40 year mortgage

Will it become more common place? I think so. For several reasons, it will allow a lower payment that bettereflects the loss in value in the mortgage/credit and housing market bust while still remaining affordable. Many folks move through several houses, upsizing as their family grows, then downsizing while their family moves out and on. How many people truly have bought their final toes up toes first house (TUTF).

TUTF is the house that you intend to live in for a long time. Possibly long enough that when you finally leave it, it will be toes up toes first.

Why this topic? I am annoyed by the current bursts bubble. It’s a splendid coupling of greed, wanting more for less, and entitlementality. I can’t believe that anyone would be financially illiteratenough to buy a home with an interest only payment or an adjustable rate mortgage. And now that the reality check has been presented for payment, woe is me. (Well not me, I have a fixed rate 15 year mortgage that remains quite affordable, thank you very much.)

But now, my taxedollars are being refunded, rebated and granted out all in the interest of economic stimulus. And they are not even taxedollars, more like imposedebt. Masking the fact that the real reason folks are spending less is that they have no credit limit left, and what credit balances they have are being slammed with higher interest rates.

Why does the government have to do anything? Partly becasue they always have and by precedence, nearly always will. The Savings & Loan bailout comes to mind. Another bubble that burst was the dotcombomb. The next bubble to burst will be the 401k and pension plan for when Amercians realize that they can’t andidn’t savenough while spending money on increased credit cardebt. This increased credt cardebt created a false facade economic growth and prosperity.

The reality check is now being called for payment.

The answer – live below your means.

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One thought on “The 40 year mortgage

  1. A quote from Charles Dickens sums this up nicely:

    “Annual income twenty pounds, annual expenditure nineteen ninety six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

    Or…as Joanie Mitchell says “Everything comes and goes, marked by lovers, and styles of clothes.”

    I have no patience with the entitlementality, as you so nicely put it. Things aren’t what’s important in life, at least to me. I feel blessed to be able to find happiness in experiences rather than stuff.

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