You get 50-year mortgages after voting for deporting foreigners, shoring up domestic manufacturing, ending foreign wars and controlling spending

[Anti Federalist]

What is the proposal here? A mortgage with a guaranteed very low interest rate for the first 5 years, followed by a very high interest rate for the rest of the lifetime of the loan, with penalties built in to disincentivize paying extra in the first five years or refinancing in ways that would the bank from making the profits that they plan to make when they charge those higher interest rates?

I would be surprised if there's anything preventing borrowers and banks from setting up a loan like that right now. But is there really a demand for this kind of a product?

A "simple" mortgage.

One where each monthly payment, from payment number 1 to payment number 360, pays an equal amount of the total interest and principal.

 

[Invisible Man]

A "simple" mortgage.

One where each monthly payment, from payment number 1 to payment number 360, pays an equal amount of the total interest and principal.

That would be the opposite of simple. It would require one of two things: either the interest rate would have to change continuously through the life of the loan, starting very low and ending very high, which would also require including special stipulations to make sure the banks don't miss out on the profits from the higher interest rates that come later, or the payments would have to change through the life of the loan, starting very high and ending very low.

Edit: And if somebody really wanted to do this, they could just do it voluntarily under a normal mortgage by paying extra on the principle each month in an amount that equals whatever their interest payment for that month is.

 

[TheTexan]

Is there a loan where I can pay off the principal and then somebody else pays the interest, that's what I want

 

[Anti Federalist]

That would be the opposite of simple. It would require one of two things: either the interest rate would have to change continuously through the life of the loan, starting very low and ending very high, which would also require including special stipulations to make sure the banks don't miss out on the profits from the higher interest rates that come later, or the payments would have to change through the life of the loan, starting very high and ending very low.

Edit: And if somebody really wanted to do this, they could just do it voluntarily under a normal mortgage by paying extra on the principle each month in an amount that equals whatever their interest payment for that month is.

Why?

A fixed rate, 30 year loan on $300,000 at 4% has a total cost of $215,608 interest over the whole thirty years.

Principle payments on the same loan would be $833 per month.

Interest would be $598 per month.

Each payment, from day one, would be $1431, equally paying interest and principle.

 

[Invisible Man]

Why?

A fixed rate, 30 year loan on $300,000 at 4% has a total cost of $215,608 interest over the whole thirty years.

Principal payments on the same loan would be $833 per month.

Interest would be $598 per month.

Each payment, from day one, would be $1431, equally paying interest and principal.

Take that example of a fixed rate of 4% per year for 30 years for a $300,000 loan.

At the beginning of the loan, the principle is $300,000. The interest for one month is $1,000. So in order to make a payment in the first month that is equal parts interest and principle, you have to pay $2,000.

Now the remaining principle is $298,000, and the interest that gets added to that in one month is $993.33. So in order to make a payment in the second month that is equal parts interest and principle, you have to pay $1.986.67.

Now the remaining principle $296,013.30, and the interest that gets added to that in one month is $986.71. So in order to make a payment in the third month that is equal parts interest and principle, you have to pay $1.973.42.

And so on, each month.

But actually, this wouldn't be a 30-year loan either. It would last forever, unless at some point your payments go more to principle than interest.

 

[TheTexan]

Why?

A fixed rate, 30 year loan on $300,000 at 4% has a total cost of $215,608 interest over the whole thirty years.

Principal payments on the same loan would be $833 per month.

Interest would be $598 per month.

Each payment, from day one, would be $1431, equally paying interest and principal.

That only works if you assume that the entire loan will be paid off and it will not be paid off early.

Neither are safe assumptions.

Loans are already pretty simple. I loan you money, and at specified intervals, you pay a specified interest rate on the outstanding principal.*

What you're asking for breaks that general definition of a loan and adds a number of complications to the agreement.

(*Or, in the case of compounding interest loans, which is a scam, you pay a higher rate of interest than was advertised by using a technicality invented by the bankers)

 

[nikcers]

Having a lot of landless people in the country has put us on the edge of becoming a dictatorship.

If Trump had not become president we would still have open borders and the idea of the American dream and ever actually owning land would be dead.

"The balance of power in a society is inextricably linked to the balance of property."

-John Adams

 

[TheCount]

A "simple" mortgage.

One where each monthly payment, from payment number 1 to payment number 360, pays an equal amount of the total interest and principal.

You can already get this style of loan.

Go to an Islamic bank. This is how their mortgages work (because interest is haram).

 

[acptulsa]

If Trump had not become president we would still have...

Shizakampf

 

[Occam's Banana]

How 50-Year Mortgages Turn Home Owners into Renters
https://www.youtube.com/watch?v=ooVY02Hy5c0
{Mises Media | 26 November 2025}

50-year mortgages are likely to increase the likelihood of more "owners" becoming underwater and walking away from their mortgages. This will lead to more bailouts for the financial sector. Taxpayers will pay the price.

Be sure to follow Radio Rothbard at https://mises.org/RadioRothbard

 

[Intrepid]

A "simple" mortgage.

One where each monthly payment, from payment number 1 to payment number 360, pays an equal amount of the total interest and principal.

.
I think that would more accurately be called simply "the cost of the loan" rather than "interest" or "usury" that is re-calculated periodically, which means the same principal gets charged interest over and over and over for the life of the loan, until there is no more principal left to charge.

For example, let's say I give you a 30-year loan of $300,000, and charge you a flat 4% fee for the privilege = $312,000. $312K ÷ 360 months = $866 per month. That way every month you're paying $300K ÷ 360 = $833.33 (the equal amount of total principal), plus $12K ÷ 360 = $33.33 (the equal amount of total interest) = the monthly payment of $866.

Compare that to what I get on my Hewlett Packard 12C Financial Calculator that I received as a gift in 1982 (damn thing still works!!):

$300,000 = present value of the loan
30 years at 12 months per year = 360 payments
4% APR = .33% per month
$0 = the future value of the loan (the dollar value at the end of the loan period)
Monthly payment = $1,432.25
$1,432.25 x 360 = $515,610

Instead of $12,000 to borrow $300K, the price you pay to borrow $300K is $215,610.

That's usury. And that is why usury has been a hot topic among the faithful for as long as there has been faithful.
.

 

[Anti Federalist]

You can already get this style of loan.

Go to an Islamic bank. This is how their mortgages work (because interest is haram).

How about I take my country back, and do the same thing, but from this guy instead:

 

[TheCount]

How about I take my country back, and do the same thing, but from this guy instead:

I think you haven't been paying any attention to the math in the thread.

 

[Invisible Man]

.
I think that would more accurately be called simply "the cost of the loan" rather than "interest" or "usury" that is re-calculated periodically, which means the same principal gets charged interest over and over and over for the life of the loan, until there is no more principal left to charge.

For example, let's say I give you a 30-year loan of $300,000, and charge you a flat 4% fee for the privilege = $312,000. $312K ÷ 360 months = $866 per month. That way every month you're paying $300K ÷ 360 = $833.33 (the equal amount of total principal), plus $12K ÷ 360 = $33.33 (the equal amount of total interest) = the monthly payment of $866.

Compare that to what I get on my Hewlett Packard 12C Financial Calculator that I received as a gift in 1982 (damn thing still works!!):

$300,000 = present value of the loan
30 years at 12 months per year = 360 payments
4% APR = .33% per month
$0 = the future value of the loan (the dollar value at the end of the loan period)
Monthly payment = $1,432.25
$1,432.25 x 360 = $515,610

Instead of $12,000 to borrow $300K, the price you pay to borrow $300K is $215,610.

That's usury. And that is why usury has been a hot topic among the faithful for as long as there has been faithful.
.

But then, you're comparing a scenario that will never exist because there is no incentive for the lender with one that will exist because it does provide that incentive.

 

[Snowball]

All modern bank mortgages are not even true loans anymore. Instead of lending depositors' funds,
new money is "created" through the BoE and the FED. At Every Loan in the System.
There is zero risk and zero investment conducted, just straight-up monetary debasement.
It is an offense against honest labor to charge anything for this level of inhuman abuse.

 

[Intrepid]

But then, you're comparing a scenario that will never exist because there is no incentive for the lender with one that will exist because it does provide that incentive.

.
That's the point of the disagreement. Historically, the faithful have believed there shouldn't be an incentive for people to be in the money-lending business, where all you have to do is sit on your a$$ and make money off of loans, because it contributes nothing to the fabric of the community.

That's why it's considered immoral. That's why Jesus smashed their tables and ran them out of the temple at the end of a scourge.
.

 

[nikcers]

.
That's the point of the disagreement. Historically, the faithful have believed there shouldn't be an incentive for people to be in the money-lending business, where all you have to do is sit on your a$$ and make money off of loans, because it contributes nothing to the fabric of the community.

That's why it's considered immoral. That's why Jesus smashed their tables and ran them out of the temple at the end of a scourge.
.

Thats why we have democratic capitalism and we have democratized the economic system in our country.

We have a national monetary system and we have a democracy.

Democratic capitalism and open borders and free immigration is suicidal though.

The USA belongs to and is ruled by the American people not anyone who invades our country.

 

[Invisible Man]

.
That's the point of the disagreement. Historically, the faithful have believed there shouldn't be an incentive for people to be in the money-lending business, where all you have to do is sit on your a$$ and make money off of loans, because it contributes nothing to the fabric of the community.

That's why it's considered immoral. That's why Jesus smashed their tables and ran them out of the temple at the end of a scourge.
.

If the terms of the loan are voluntarily entered by both parties, then I see no ethical defense of any third party banning the agreement. Those who don't believe they should borrow or lend with interest simply should not do it, and voluntarily forfeit the benefits of it for both parties.

 

[ClaytonB]

Why?

A fixed rate, 30 year loan on $300,000 at 4% has a total cost of $215,608 interest over the whole thirty years.

Principle payments on the same loan would be $833 per month.

Interest would be $598 per month.

Each payment, from day one, would be $1431, equally paying interest and principle.

Literally no one calculates loans the way you are proposing. That's because it makes no sense. Why should interest be "equal" throughout?

I'll try to give a more in-depth reply tomorrow...

 

[Intrepid]

That's why we have democratic capitalism and we have democratized the economic system in our country.

We have a national monetary system and we have a democracy.

.
Who made the rules for all this so-called democratic capitalism?

Who made the rules for this so-called national monetary system?

Could those rules be why kids are graduating college buried in debt?

Could those rules help explain why nobody saves money anymore?

Could those rules help explain the steadily growing mountain of revolving consumer debt in America?

Could those rules help explain the number of Americans that are one maybe two paychecks from being homeless?

Asking for a friend....