Classics (6/1/25-12/1/25)

Thank you for the question! President Trump recently mentioned the possibility of offering 50-year mortgages. This news made headlines and received a mixture of feedback. The President stated it would be a good idea so more people could afford homes due to lower monthly payments.

Why I think it's a horrible idea:

1) Offering a 50-year mortgage does not lower the price of homes which is the real issue at hand. If the demand for homes rises due to this new mortgage option, then prices will rise, the exact opposite result of what new home buyers want.

2) Offering a 50-year mortgage does not fix people's money problems. Most people (not all, some just have bad circumstances and a tough life) suck at managing money, hence why they struggle to afford homes.

3) When you mortgage a home, you do not fully own it, the bank also owns a portion…

In 2021 the median net worth of U.S. households was $166,900. Meaning if the average household added up all their assets and subtracted their liabilities (debts), they would own $166,900 of stuff. (property, bank accounts, collectables, stocks, bonds, cash etc.) 65% of this net worth was comprised of home equity. ($108,485) Home equity is the value you own in your home.

Example:

Your home is worth 200k and you owe 100k, you own 100k in equity.

The average U.S. household has 65% of their net worth in their primary home. WOW! You hear mainstream news say, "your home is your greatest asset". According to these statistics, for the average household, this is true. (somewhat)

Why this is bad:

At some point, the grind of swapping hours for dollars wears thin. The real question then becomes: how do you start making your money work for you? The majority of people spend their career working for an hourly wage, they trade time for dollars. You give your company 1 hour of your time and they pay you $50 for your work. 99% of people work their entire adult life this way.

Somewhere along the way, they start realizing that trading time for dollars can be problematic. Examples such as, getting sick, you get fired, you want to retire, you get injured, you need time off to help a family member, you want to travel for a month, or you are simply burnt out and need a break to reassess your life.

When the work stops, so does the dollar earning. When the dollar earning stops, the ability to pay your…

You'll life will be incomplete and miserable unless you purchase a big home, large yard with a fountain and a white picket fence. What your relatives and banks do not tell you, are the realities that lurk in the shadows. One in three first time home buyers regret their purchase and 64% report their home buying experience as stressful. Why? MONEY. Financially purchasing a home is a massive decision, one that should be thought out and calculated correctly.

It's also an emotional rollercoaster.

• Pre-approval

• Proof of funds

• Downpayment