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A 50-year mortgage is basically the government admitting you’ll die before your house is paid off.

Great for capital allocators. Horrible for everyone else.

Completely dystopian.

Here’s the actual math behind the 50-year mortgage “savings”:

30-yr mortgage payment: $2,022/mo

50-yr mortgage payment: $1,784/mo

“Savings”: $238/mo

If you invest that $238/mo into Bitcoin at 15% CAGR, after 50 years you’d have: $12.4 million

At 20% CAGR: $129 million

At 25% CAGR: $1.4 billion

Meanwhile:

Extra interest you pay on the 50-yr mortgage vs 30-yr: $393,920

That’s the bank’s compounding, not yours.

The 50-year mortgage only “helps” people who invest the difference.

Everyone else just gives the bank an extra four decades of interest.

This is how a society creates investors on one side and lifetime renters on the other.

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Discussion

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The savings are likely overstated, as you will be required to purchase a more expensive home owners insurance policy which pays off the loan if you die. Also it is likely many will not be able to get a 50 year loan, as no insurer would be willing to offer the insurance at a reasonable price.