Speaker: [00:00:00] Our 50 year mortgage, a terrible idea that will chain you to debt forever?
Speaker 2: Or are they the only realistic way younger Americans, especially veterans, can ever become homeowners
Speaker: when people lose their minds over the ideal of a 50 year mortgage? I get why, but I also think a lot of the loudest voices are ignoring the bigger picture.
Speaker: If people can't buy it all. We're manufacturing a generation of permanent renters
Speaker 2: today. We're gonna break this down from both sides, the policy and real estate lens and the VA and veteran household lens, and ask a simple question,
Speaker: is a 50 year mortgage a trap or could it actually help some people compete in this market?
Speaker: Let's talk about it.
Speaker 2: Hello, welcome to Prepare to Compete when [00:01:00] we talk all things VA benefits, real estate, entrepreneurship and more. Kid of Davis, how you feeling today? My brother?
Speaker: Oh, I'm blessed. I'm blessed. Uh, blessed and highly favored, uh, you know, last year of the month. And, uh, just pushing along here in Q4.
Speaker 2: Absolutely pushing along.
Speaker 2: Happy Holiday season to all. Having a wonderful year. 2025 went, it, it was gone before you knew it.
Speaker: Blink of eye, right? Uh, they say, uh, time flies when you're having fun. Huh?
Speaker 2: Time flies when you're having fun. But a 50 year mortgage, people might not think that time will fly too fast, right? So there's a lot of.
Speaker 2: Misnomers and a lot of talk in the community regarding the topic of 50 year mortgages. So we definitely wanna educate everyone and have Kenneth give his expert advice based on the veteran experience and really what this is going to mean for the [00:02:00] veteran community if this possibility comes to fruition.
Speaker: Yeah, no, true indeed. I think there's a lot of, uh, nuances that, that, you know, really could. Um, really put, could be favorable in a lot of people's, uh, you know, determination, but I, I just don't think everyone's looking at it that way. Um, but it's gonna be really, really, uh, really good conversation.
Speaker 2: Absolutely. Because the main conversation, Kenneth, is, you know, what exactly is the problem? You know, we're talking about 50 year mortgage, however, there. That is a solution to a problem that America, uh, currently has. So, you know, when you're trying to think of it, you know, what is the real world problem in America with the housing market currently?
Speaker: I mean, let's just put it out there. Pricing, pricing, pricing. And also, uh, uh, the economy and, uh, pay wages. What, what are the wages looking like? I don't think the [00:03:00] wages are actually, uh, in competition with the in fluctuation of the market.
Speaker 2: Absolutely people are being priced out of being able to buy homes and you know, with interest rates and housing prices at record highs, you're looking at a market where you're comparing rent versus buying.
Speaker 2: And for the short term, there's really no comparison. You are looking at maybe a $4,000 mortgage versus paying $1,800 to rent would just make fit. Not really equitable for someone even consider buying a home at those prices.
Speaker: Yeah, I mean, true indeed. I mean, we have to really understand that. Uh, I mean, uh, wages are just, have been remaining flat.
Speaker: Over the last decade, we can say it. Uh, but I mean, at the end of the day, I mean, we gotta understand, uh, people are getting secondary jobs to be able to, you know, supplement that income because, uh, you know, uh, though [00:04:00] wages are are, are flat, people still need to live. So, um, it's just, uh, unfortunately, uh, causing more stress, more strain just on the economy, just in general, if you ask me.
Speaker 2: Absolutely. And that's what the 50 year mortgage is seeking to solve, right? It's seeking to solve the problem of how do we make home ownership more affordable so that that American dream could be attainable for more American. So that's what we're unpacking there. Now, is it gonna be the best solution?
Speaker 2: Well, what a lot of people are neglecting to remember is that when we first came out with the 30 year mortgage, people were up in arms about that, right? So. They were like, oh, that's way too long. And now that's become the standard. You know, most people get a 30 year mortgage and let me let you in on a little secret.
Speaker 2: You actually don't have [00:05:00] to. There's still a 15 year option. There's a 10 year option, there's a 25 year option, and. Somebody recently just told me if, if you don't know, talk to some of your lenders, but there's already a 40 year option for some lenders to be able to purchase a home that way. So when you look at this idea, it's not as drastic as you think.
Speaker: No. And, uh, and, and, and let's, let's really unpack that, right? Uh, a lot of those mortgage parameters, um, are set by government entities. But there are lenders who are flexible in regards to their mortgage, their mortgage standards. Um, but a lot of times, again, when we talk about lenders, uh, we have to understand that there's, uh, privatized lenders that we wanna make sure that, you know, are, are equitable and, um, true to what they say.
Speaker: But just generally speaking, um, those standards are set by the government. So now, if they are setting the standards in regards to lending, [00:06:00] um, and, and, and setting a 50 year mortgage. Well, they have already kind of unpacked some of the issues that they may run into. Right. Uh, because, uh, we're talking about lender derived financials, uh, it becomes a big, big, uh, big thing and also, uh, impact, uh, on, uh, the government financials.
Speaker 2: Absolutely. But, you know, it does bring a very, very important conversation to fruition when we're talking about that, is just looking at how we're doing things right. So the 50 year mortgage within itself is not. The main crux of the issue, it's how it's gonna be applied. So when you look currently and you look at someone that's getting a 15 year mortgage versus a 30 year mortgage, they actually have a decreased interest rate if they pay the loan off.
Speaker 2: Faster, right? So that 15 year mortgage has a lower interest rate. So if we just use an example and, you know, everybody has, uh, Google and now you [00:07:00] have, uh, artificial intelligence to help you get these numbers, uh, a lot quicker, right? So I'll let you do that math and look at what today's rates are, but you can run it any day is gonna be a half a percent and maybe even almost a percent lower for that.
Speaker 2: So. We're going based upon that same pretense. A 50 year mortgage may not actually help the way we assume it would unless there's some different mortgage reform because it may in fact have a higher interest rate than a 30 year mortgage. If that same process continues with the longer the loan, the higher the rate is, so we have to look at the implementation and really.
Speaker 2: Understand how that's gonna happen before we really start judging on whether it's a good idea or not.
Speaker: Yeah, true indeed. And, uh, for, you know, our active duty and veteran community, we also gotta take in consideration of locality, [00:08:00] right? Uh, affordability, locality, and also understanding that with a 50 year mortgage, if it is a higher interest rate, now, what does that really look like in regard to purchasing power?
Speaker: Right, because, uh, when we talk about the VA loan, right, the VA home loan, that is, uh, that's supposed to be a government backed loan that is going to be essentially, uh, to be able to lower your interest rate or be on par for FHA, but. Understanding that if that, if they're imposing a 50 year mortgage, what does that really look like, you think?
Speaker 2: Absolutely. No, that's a good question. And you used a, a key word there, Kenneth, right? You used the word impose, right? So. They may or may not be imposing it on us, right? 'cause we have to think that we do have some options. But if they do have it as an option, frankly I don't even think they figured out what will happen yet.
Speaker 2: 'cause they haven't even got that far. Into the [00:09:00] conversation because you are absolutely right that we have choices on whether we select a 15, a 30, or a 50, if that's an option. But most people are gonna go for the 50 year if they open it up to everyone. So that really will, in fact, be mostly imposed on us.
Speaker 2: And they haven't even figured out all of that. 'cause right now it's just an act of conversation. And I think they introduced it in a way to stimulate all of this debate so that they could really come out with, okay, what are all the problems and how we implement this correctly If it actually becomes, uh.
Speaker 2: A law where we're actually allowing lenders to, uh, utilize that as a tool for, uh, Fannie Mae and Freddie Mac there especially.
Speaker: Franny, good old Freddy. Hey, Freddie Mac. Uh, well, I mean, uh, yeah, and, and, and, and, and again, I, I do agree with you, uh, but I wanna kind of break this down a little bit in a layman's [00:10:00] terms, right.
Speaker: Uh, because, you know, when we talk about these, uh, 10 to 15, 20, 40 year mortgages, 50 year mortgages, it comes, uh, it, it, it is very, uh, uh, it is very broad, but also being broad, it's a very, uh, impactful. It really just punches you in the face. But now let's kinda understand that if again, uh, a 50 year mortgage is then an option, is that lowering my mortgage?
Speaker 2: Yes. That's a good question. So the idea is for it to be able to lower your mortgage and the map that they're looking at right now, on average is gonna be. A few hundred dollars at least, right? But now they're making an assumption that they're gonna have the same interest rate as a 30 year mortgage. So under that assumption, it will significantly, uh, lower your monthly payment, hundreds of dollars, however, over the course of 50 years.
Speaker 2: You're gonna be paying a lot more in interest [00:11:00] now for a home over 30 years. If you buy a home for 300,000, in 30 years, you've repaid, uh, 900,000 back to the bank, right? So now if you add 20 more years on top of that, it just goes up to even more and more interest, which is what people are looking at and, and why they're outraged over the situation.
Speaker: And that, and that's a good viewpoint, but. We're not living in 1930s any longer, right? Uh, I don't think, you know, people are staying, you know, in their position of their, uh, their, their, their home for 50 years. I mean, who has who? I, I, I just don't know. Too many people has moved in and stayed at elongated beyond 10 years.
Speaker 2: Absolutely. Kenneth, the average. Americans stays in their home about 10 to 13 years, uh, before they sell the home. And a lot of times they refinance a lot sooner than [00:12:00] that. So when we're talking about this, it is not the problem that we are making it out to be. And when we think about it with the active duty military and veteran community, uh, especially with our active duty community, you're getting, uh.
Speaker 2: A service member who is coming in at 1819. Their buying years of establishing their family is when they're in military service. So you want those individuals to have an option to buy a home sooner than later. And this 50 year mortgage product is going to give them that option, which is very beneficial for them.
Speaker 2: And as we know, a active duty service member may not even be stationed, uh, at that same location. Uh, for the duration of their career, let alone the duration of their lives, right? So they're gonna be selling that home sooner or converting it into a rental property if they're [00:13:00] being smart about it, right?
Speaker 2: And. Utilizing that to create wealth for their family and future generations to come. Because once you purchase a home, you want to keep that within a family legacy at all cost.
Speaker: Yeah, no, true indeed. I actually think it puts, it, uh, puts a, puts it in an opportunity, uh, to be able to really get more investors in the market.
Speaker: Right. Um, because I think the real estate investment, um, you know, uh, game has, has really changed. Right. Um. It was always a barrier to entry to market, uh, due to funds. Right. So now with the 50 year mortgage, I think it will be able to kind of really open that opportunity. Um, we, again, there's so certain different methods and opportunities that you could be able to utilize to be able to, uh, become an investor, right?
Speaker: Which again, I'm no expert in, so I'm not going to get too much into that. Uh, but what I will tell you is, is that, uh, a 50 year mortgage will then put you in a position [00:14:00] where, uh, where you have more access to capital quicker. If you ask me. Because again, in elongated, because now your property becomes more desirable, a lot depending on the price points that you bought it in.
Speaker: So because now we're talking about an en elongated 50 year mortgage, lower cost, lower price, lower price point. Now you have, instead of it being a $2,500 mortgage, what we would presume that would then lower to about an $1,800 mortgage. So now. The it, it really freezes and not necessarily freezes, but slow down the rate of inflation and also appreciate, but it also continues to appreciate a little bit faster, I would believe.
Speaker 2: Yeah. So, you know, that is, um. A supply and demand question, right, on how that's gonna operate. Uh, it may bring more buyers into the market. So at first it will likely slow down your appreciation, but over time it definitely is going to [00:15:00] make it where it needs to be. And when we're thinking about appreciation, we always look at it, especially if you're a homeowner, as a positive thing, but for individuals.
Speaker 2: Entering the market, it's going at a rate that's unsustainable. So in some regards, we wanna slow it down. I think the best way to implement, uh, a 50 year mortgage product, if we limit it towards certain home buyer assistance programs are, we have it capped at, uh, a certain amount based on the area. So we're looking at the.
Speaker 2: Uh, average median income and things of that nature. And you're looking at those things and saying, Hey, well you could utilize this product if you make under a certain threshold, or if you buy a home under a certain threshold. And then now that kind of protects and safeguards from the wrong type of investors, uh, purchasing any of these [00:16:00] products 'cause us and we, we wanna.
Speaker 2: Create more investors in a market, right? But we want to do that for the first generation investors. So we don't necessarily want to have more investors coming into the market who can actually afford to buy homes and afford traditional investment products and hedge funds taking advantage of these type of products.
Speaker 2: So we wanna try to cap it where it's only gonna help the individuals that it's intended to help. So. If it is implemented that way, I think it's good. But on the other side, big business and everything, they're always going to find a way right to, to make an opportune for them. 'cause at the end of the day, they're investing in a, a lot of the homes as far as being a builder or they're flipping homes.
Speaker 2: And if the increase homes in the market, is that gonna change that up as far as now a home that you could have bought? For 350,000, will that house go up to [00:17:00] 500,000 because of the increased competition? Right? So there is always a delicate balancing act when you're looking at all of these different types of solutions and implementing it into the market because.
Speaker 2: The Wolf's always gonna be wolfs, you know?
Speaker: No, true indeed. I mean, uh, there's a ton of loopholes that I think, um, that again, uh, people will take advantage of and, uh, we have to take that into consideration. Um, but at the same time, is it really taken advantage of if you know the rules of the, of the market?
Speaker: That's, that's up to you. That's up to you to decide. Uh, but I will tell you, uh, that government needs to take a look at that themselves because, uh, and, and again, I wanna circle back to the VA loan because a lot of things change. A lot of things change when we talk about loan limits. What does that look like?
Speaker: Uh, we talk about, uh, the, when we talk about the VA loan implemented now again, uh, the strict ramifications of rules, uh, does it apply to the same [00:18:00] 50 year mortgage? Um, and you know, there, i I, I would believe everything would apply at whole and full, but at the same time, at that point, with a 50 year mortgage, I think, uh, almost when we talk about E three and up, uh, E three and above will be able to afford a a home.
Speaker: And that's what you essentially want. Um, however, now who's taking advantage of the market and who's not
Speaker 2: Absolutely.
Speaker: What, what, what, what does that look like?
Speaker 2: Absolutely. Yeah. So the, again, the implementation. Is the most important. You know, it only we, we only know so much about this, right? Just because it's a lot of speculation into what can potentially happen, but I would say it's a breath of fresh air and it's moving in the right direction that.
Speaker 2: Uh, America is thinking about Middle America, right? And the affordability crisis and suggesting some solution to be able to combat that. So, you know, I take my hat off to that fact that, hey, this is a [00:19:00] solution that could potentially help everyday Americans that guess what? Don't already currently own a property.
Speaker 2: Right? Because that's what it's targeted for. And you know what's crazy to me, Kenneth, is that people who do not own a property are always talking and complaining about the interest rates of homes and the length of of things. It's like, well, guess what? If you never purchase a home, then you're paying rent for your whole life, which is more than 50 years.
Speaker 2: Yeah. So why are you worried about it taking 50 years? To pay off a home. Even if you think in the ideal pretense of a world that, Hey, I'm gonna buy this home at 30 years old and I'm gonna live in there until I die, which it's not gonna happen. You have lifestyle creep and other things that occur, but even in that scenario, it's like, well, what was your other alternative?
Speaker 2: To never buy a home and then be written the whole time and you never secured and locked down your. [00:20:00] Most important expense, which is your housing expense. 'cause over 30 years, you know, whether you lived in San Diego or you lived, you know, somewhere in the Midwest, it's gotten more expensive. You know, you went from paying several hundred dollars a month to paying several thousand dollars a month.
Speaker 2: So what is that gonna look like 30 years from now? The key is really to stabilize your. Expense as far as housing expenses because veterans retirees, they can't afford to rent. And with rent going up when they're retired, they need to lock in that at a early time to be able to maintain a certain standard of living.
Speaker: No, I do agree. I do agree, but I also think there's a other side to that. Right. Because now stabilization of the economy doesn't only also, it doesn't always rely just on home purchasing. [00:21:00] Well now there have to be the jobs out there to be able to, uh, sustain that affordable lifestyle and also to be able to afford a mortgage.
Speaker: So it's just very difficult. Um, as you mentioned, it's a, it's a very difficult, uh, uh, uh, uh, balance when we're trying to really, uh, uh, sink. The income, uh, and the wage gap with home purchase. Right. Um, which I, I, I definitely believe that there's a, there's a good marriage in between, in between that, and I think that was happening in the nineties, right?
Speaker: Early two thousands. But obviously over the last years we've seen this bubble have bit bigger and bigger and bigger. It already bursted on us once will it happen again? And we would like to know your opinion.
Speaker 2: Wow. You know what I believe. That the government is not gonna allow it to happen. You know, I believe the bubble is, is just there, you know?
Speaker: Are you saying [00:22:00] that we've been in recession for the last three years when no one spoke about it?
Speaker 2: I'm saying that the bubble,
Speaker: if, if not more.
Speaker 2: If it's been a bubble, it should have already burst. Right. Because when you think about even what we're talking about, the fact that we even have to resort to this as an option tells you that we have a severe problem.
Speaker: Are you saying that there has not been enough homes being built over the last five years?
Speaker 2: There haven't been enough homes being built because there hasn't even been enough wood and supply to build the homes, let alone workers to actually build the homes as well.
Speaker: Are you saying that there is not enough skill for workers in the, in the continental US to be able to build these homes and continue to go ahead and continue the cycle of the economy?
Speaker 2: I'm afraid not, but you know what? I don't want to say all of that, but what do you guys think? Let me know in the comments, but. Yeah, it, it, it is been very much so a problem of all of these different facets. So it's like this is [00:23:00] one solution they're trying to put on it, but it's like all of these different problems we're trying to cover up, and I think we're pretty far in the hole here.
Speaker 2: You know, even if you think about it as far as a auto loan, right? The average auto payment was 300 and something dollars. Now it's $750 and it's only. That amount because we keep extending the length of the auto loan. It used to be four years, five years, six years. Now it's going up to seeing people financing vehicles for 84 and now 96 months, uh, for a vehicle.
Speaker 2: So when you look at it in that sense, we have a problem. Now, some people may look at it as, as though, well, there's a affordability problem and, and I believe so, but. Also entangled to that is that we have a spending problem where the government is spending too much and. We adopted the habits of our parents, [00:24:00] right?
Speaker 2: So the government being our a parent in that situation is like they're overspending and we're in a deficit, what, $40 trillion. And it's like we're actually running our homes the same way off of credit cards and off of overspending just to. Satisfy personal desires. And you know, that's what really led to the birth of the 30 year mortgage to begin with, is because people just wanted to have larger homes that they didn't necessarily need.
Speaker 2: You know, you got a few kids and you want every kid to have their own bedroom, and you want a theater room, and you want a loft, and you want all these different things, well that's gonna cost more and. It kind of contributed to the problem we're in.
Speaker: Are you saying that the American lifestyle to have bigger, better, and more is contributing to the 50 year mortgage and our spending habits?
Speaker 2: Saying it is [00:25:00] contributing. And along with that problem, people wanna work less or still wanna work, you know, eight hours a a day. And that's just not gonna happen.
Speaker: You know? Are you saying that Americans wanna work less, have more, and implement artificial intelligence and also still be able to make a lovable wage?
Speaker 2: Right. And then complain that the AI is taking the job, but they don't want to do the work in the first place. Are you saying
Speaker: that, that we're in a possible cycle that is unsustainable?
Speaker 2: It is unsustainable. Yes. We we're in that cycle, but how do we kind of. Get back and really, you know, there could be several solutions for it, Kenna, but I, I don't know.
Speaker: Yeah, I mean, um, I think, you know, this has been presented, uh, on several different platforms. Um, just, uh, again, you know, big Tech has presented [00:26:00] this and stated this for many, many years. Uh, uh, regulation needs to be had on many things. Right. However, uh, uh, again, just in general, big tech needs a little bit of regulation.
Speaker: Um, a, this implementation of AI should have some type of constraints or regulation on things. Uh, but ultimately it just forwards a into the, uh, the univa universal basic income economy that has, uh, been a con, continuous, uh, and foreseeable future. That, you know, there are states that have adopting it, you know, uh, again, in Alaska this is being something that's had, so it looks like it's forwarding and, and moving in that direction, but.
Speaker: Now, how do we have a, a, a universal basic income, flat tax, and also a 50 year mortgage without, you know, uh, many jobs, right? [00:27:00] We have to really continue to look at the full picture at a whole. In regards to where we're moving and where, what our future looks like because our children have to live in this future.
Speaker: So, uh, just understanding and shaping it the correct way is gonna be able to provide the biggest impact. I just wanna make sure that, again, when we're talking about these mortgages and understandingly, uh, again, we can correlate home buying to the health of the economy and home buying has slowed down tremendously since 2023, we would say.
Speaker 2: Yeah, definitely from 20, 22. 20, yeah. 20.
Speaker: Yeah. Uh, so I mean tremendously. So what is the economy really telling us? Job losses at mass has been tremendous headlines. 15,000 people laid off, 50,000 people laid off. We are in an economy where, again, media controls everything, but for some odd reason, everyone makes six [00:28:00] figures.
Speaker: In the US economy when in all actuality there's about a 6% rate of people that actually make that type of money.
Speaker 2: Absolutely. And what's so crazy about making six figures is that has been so aspirational for so many years. You know, uh, we're in 2026, you know, already, uh, going in there. Individuals are still aspiring to make six figures.
Speaker 2: And you know, when we got outta high school and things 20 years ago, people were aspiring for the same thing. And that a hundred thousand dollars at that point had a whole lot more buying power. So that tells you right there how much the world. Shifted, but wages have actually stayed the same because people still haven't hit that pinnacle of a hundred thousand dollars.
Speaker 2: When in 2005, that was a aspiration and considered a [00:29:00] good living then and now if you get there, unfortunately it's not as much as you think.
Speaker: It sounds like the goalpost is continuously moving to be able to really. Just have a way of living. Mm-hmm. You know, um, and I think, uh, you know, us as a whole, as the economy need to take a step back at times and really just, uh, really be grateful for what we have because, uh, a lot of times we're so busy.
Speaker: Looking over the horizon and one in the next, and, uh, really pushing for, um, increased income because we have to. Right. Uh, definitely when eggs were, were, were, were seven, $8 at one point in time. Right. Uh, but at the end of the day, we need to find better ways to be able to help the masses. And although we are going to in a a a a very, um, involved artificial intelligence economy.
Speaker: Um, I think also we need to worry about the people, and [00:30:00] people matter. People matter. I, I, I think we're going into a age where a lot of this artificial intelligence is gonna change the world, change the, and change how we operate on our day-to-day basis. However, it's also gonna hurt and lead behind a lot of people.
Speaker: We already have a real disparity in this wealth gap, and now it's just going to grow. It's gonna grow at a rate that is unsustainable. Now we worried about 50 year mortgages. How about we put some reg regulatory, uh, legislation on the control of this, uh, uh, uh, disparity here?
Speaker 2: No, absolutely. So, you know, when bills are presented, those are the conversations that really need to be had, you know, on how to put some regulations and controls, uh, with it, but.
Speaker 2: Because at the end of the day, again, it's a, it is a great idea. Yeah. You know, currently the average age to [00:31:00] purchase a home has hit 40 years of age. So the average American is not purchasing a home until they're 40. So even with the 30 year mortgage, they're gonna be 70 years old until that's paid off. So let's just sit here and think about that.
Speaker 2: Okay. And with the 50 year mortgage, what it is. Supposed to be designed to do is to allow individuals to purchase homes sooner. So now if you purchase that home at 25 years of age, and that same scenario, it'll be paid off when you're 75 years old, right? So it really only changed the pay. By five years by decreasing the age the way it did.
Speaker 2: Right? So again, you always have to look at the whole entire picture before you judge something. And again, it's all assumptions at this point, but that these are the things that they're looking at. [00:32:00] They're looking at, hey, people used to buy homes in their twenties and they can't anymore. How can we get 'em back to purchasing in their twenties?
Speaker 2: But something else. In regards to individuals who are against the 50 year mortgage. It's like I'm talking to people and they're like, oh no, I wouldn't do that. I was like, you just bought your home. Um, last year. It's like, yeah, I just bought a home last year. I couldn't imagine paying, uh, for 50 years. And then my question to them is like, what if you could have purchased that home five years earlier?
Speaker 2: How much was that same property five years ago? That's what the 50 year mortgage is. Designed to do to allow you to purchase that home a lot sooner than you otherwise would've, or another thing that I look at being able to purchase more home so you can live in that home for the life of the loan.
Speaker 2: Because that's the other problem is that affordability is so much, even those who are purchasing, they [00:33:00] have to just get. What they can, you know, so they're getting something that's a starter home, which nothing is wrong with a starter home, but you, it's a starter home. You are eventually gonna upgrade, but what if instead of getting that starter home, you are able to go into the market and get that forever home?
Speaker 2: Well, you've already saved money by doing that, because if you're gonna live in that starter home for five to seven years and then purchase, then. You are already in that home. You bought that, uh, forever home at a decreased price, then you would pay five to seven years from now. So don't let those type of facts go over your head when you're looking at this and you're doing it.
Speaker 2: But what I would urge the government to do and look at now is that since they make more money on a 30 year mortgage, I bear to ask why is a 15 year mortgage. More affordable as far as the interest rate anyway. Like if we just changed that fact that [00:34:00] could actually help many Americans out now by not even putting a 50 year mortgage in place.
Speaker 2: And, and I, I don't want to, you know, go against people who are getting a 15 year mortgage, but even if you just made it the same interest rate, like, hey, whatever the 15 year rate is, we are gonna charge them the same amount. For a 30 year mortgage. 'cause we gonna make more money on it if they keep it longer Anyway, so why not?
Speaker 2: Let's just do that instead of even this whole 50 year conversation. So hopefully the powers that be are having these conversations in the back room somewhere and thinking through these types of details. If not, gimme a call. I got some answers for you.
Speaker: No, for sure. But there's so many big concerns, right?
Speaker: You know, 50 year mortgage, 15 year mortgage, right. Uh, the berry of entry. What does a down payment look like? Well, I know a down payment for a 15 year mortgage is much more than a down payment for a 50 year mortgage. Uh, you think? [00:35:00]
Speaker 2: Yeah, absolutely. Because you're financing for, um, you know, less of a period of time.
Speaker 2: So mainly it impacts your. Uh, payment. So your payment can be almost double right for that 15 year product, but your down payment is just a percentage of the purchase price. So that's going to maintain the same no matter how long you finance the home. So that is safe from that aspect of it, but if a mortgage for 30 years was gonna be $3,000 and now I gotta pay 5,700.
Speaker 2: Not a lot of people have 5,700 a month to do that. So I hear you Dave Ramsey. But you know, explain to us with, uh, what Kenneth is talking about with the fact that wages are so low. Most people don't make $5,800 a month, $5,700 a month. So how can they afford to do that? Uh, again, I think wages need to change.
Speaker 2: I [00:36:00] think we need to. Get in a period of time where people understand, hey, after work, you got an Uber to get home, you know, you have to have a second job or a side hustle or something else, uh, to stimulate and make income there. And it is doable for a majority of Americans. You know, when you know we're talking to people, talking to family members and otherwise, and trying to motivate them.
Speaker 2: On these things, just think about it. Okay? So if you have a middle class income and a middle class job, maybe you are, um, you know, a, a teacher, you work as administrative assistant, you, you know, there's a, a lot of different jobs. Whatever your. Employer pays you to do on a full time. You have a certain skill that you've been trained to do, that somebody would actually pay you to do that on your off time, and you could use that same exact skill that you've learned from [00:37:00] your employer to supplement and make additional income by doing the same thing for a small business on the side.
Speaker 2: And we have to start looking at these solutions and not being too proud to work a few weekends a month and, and, and do these extra things. And not being worried about living lavish lifestyles with minimal effort. That only happens on Instagram.
Speaker: I, I, I, I mean, I agree. I agree. But, uh, there's, there's also a, a, a, a learning curve with that, right?
Speaker: Because. You know, the educational system has taught a lot of people to be able to get educated, get a job, get your pension, and live your life when that system has eroded many, many years ago. So it's a very, very difficult transition that I think we're in [00:38:00] currently that many people are. Are unfortunately gonna take the back in, uh, of the brunt of this.
Speaker: Okay. Um, these 50 year mortgages, I think they're, I, I, I, I, I truly, if I could have a 50 year mortgage, I would have a 50 year mortgage. So let me go ahead and clarify that. But there's also attainable risk in this, right? Um, and what I mean about attainable risk is attainable risk in all mortgages. Um, but when we talk, when we speak about the 50 year mortgages.
Speaker: As, as, as you mentioned, the interest that you're paying over the lifespan of this, and even if it's, you're not staying in there, the interest, but things change, right? You want to refinance in, in a two to three year time span, that's gonna cost more. It, it's gonna cost more. They're gonna, they're gonna charge you more to refinance a 50 year mortgage and probably double.
Speaker 2: Alright. Yeah. Hopefully they don't let you [00:39:00] refinance if you already, 'cause you already got it so good. But that's the thing, Kenneth, it's like. No matter what solution you come up with for people, they're gonna still find a way to dig themselves in a hole. You know, you talk about the pension. They get rid of the pension, they make it standard for more employers to have 4 0 1 Ks.
Speaker 2: Now people are borrowing against their 4 0 1 Ks and so they still don't have money when they retire. And the same thing with purchasing a home. They're refinancing the homes anyway, so that's what I don't get about the outrage of the 50 year mortgage to begin with is it's like, didn't you just refinance back to a 30 year mortgage after you done paid it for 20 years already?
Speaker 2: You are in a 50 year mortgage already.
Speaker: So are you saying. More than likely, most Americans have refinanced three to five times already, and they have already put [00:40:00] themselves in a 50 year mor, uh, 70 year mortgage. Probably
Speaker 2: most people will not pay off a home. They will die with the mortgage,
Speaker: and that was said body.
Speaker: Mr. Jones.
Speaker 2: That, that's just the honest truth there. And now I hope they prove me wrong, that I hope do that, but we continue to get ourselves in, in the debt, even with the car situation. It's like somebody, there's somebody right now that just got a 96 month alone on a vehicle and they're gonna refinance that vehicle and pay on that car for more than 96 months.
Speaker: Yeah. Um, I've seen it
Speaker 2: so. It. We find our, we find ways to keep ourself in a jam, and that's what the government with this solution is trying to get us out of, but. Truthfully, we need to get ourselves out of that jam, right? And so when we kind of bring it back into the veteran community, and really particularly the active duty community, [00:41:00] because I would really like to see more active duty service members purchase homes earlier in their career.
Speaker 2: You know, they have the BAH, it stands for buy a house, you know? So they need to u utilize those resources to purchase a home and. This is a product that could encourage that if implemented correctly. But now, Kenneth, how would you say, uh, just whether they use, utilize this program and it comes to fruition or not, how can our active duty service members, uh, young, in their twenties do more to be able to afford a home sooner?
Speaker 2: And it's the other thing that we have to encourage them to do so because. You know, they wanna rent and, and live in a high rise a lot of times, right? Because that's an appealing option. But how do we, um, advise them to change their spending habits so that they can create more security in the future?
Speaker: [00:42:00] I'm glad you asked.
Speaker: Alright. Active duty members, this is what we're gonna do. Alright? Uh, if you are particularly probably E five and below, let me tell you this. Right. Nine times outta 10. If you are, you have a spouse or you don't, uh, or a geo bachelor or what have you, um, well, when you are deployed or somewhere where it is, where you're stationed somewhere that is not a lot of activity and you can save money, save as much money as you can.
Speaker: Going out in town and spending every dollar your check for the again, and waiting on the first and 15th to come around is not the way to go. That's first, right? Take that savings and go to a lender and say, Hey, I am looking for a VA loan. And now after you've already, obviously you're in the military, so you have a stable job.
Speaker: Now, once you have access to your VA home loan, now you go find [00:43:00] three buddies to be able to one go roommate with or, or two buddies or one buddy, right? You purchase the home, get them a room to rent that room because again, you are in a community of E five and below that have standards that they need to abide by in town and and on base.
Speaker: Okay? And on base, again, you're abided by the UCMJ and also the chain of command. So with that being said, you have a lower risk tolerance of that roommate. Does bad things happen? Yes, but again, hopefully it doesn't happen to you. But now with that said, now you are have split your mortgage in half and you get to live out in town because you didn't save your dollars when you went on that six month, one year, two year, 18 month deployment, what have you.
Speaker: So now at that point in time, you have home, have [00:44:00] home ownership, and also split. The mortgage in half, and now you have a little bit of extra cash in your pocket that's coming to you on a daily end. When you PC S, or if you reenlist or you don't, you have security through your transition that is going to put you in a position of success.
Speaker: There's a lot of other nuances and rules and guidelines be in between that, but you have the availability. Also the access to one of the most powerful tools in the mortgage market, and that's the VA home loan. If you want strategy, give us a call. There's so many different rooms for opportunity to to leverage your VA home loan for success, financial gain, but also security for you and your family moving [00:45:00] forward.
Speaker 2: Kenneth, that was wonderful information there. We definitely appreciate that. But I'm always pushing Kenneth to give him more and more information, right? He thought that. He thought like, oh, that was so eloquent. I done ended it. Well, you did end it well for the active duty service members, but now what I want you to do here before we depart here is talk to the veterans.
Speaker 2: Okay, so now. There's many veterans out there that did not hear your wonderful wisdom that you gave to the service members there. So they're between the ages of 35 and 50 years old. They haven't purchased a home. They may be married, they may be divorced. They have credit card debt, they have a auto loan, different things.
Speaker 2: How can they start to reshape their lives to be able to subscribe [00:46:00] to the American dream of purchasing a home, but not only purchasing a home, but creating a secure financial future for themselves and their loved ones?
Speaker: We're gonna start with one, one rule first. Do not listen to the rumor mill. Go to your nearest VA vetted lender and actually come up with a plan that is, that is specifically for your circumstance.
Speaker: Every veteran circumstance is a little bit different. Your financial circumstances, very much so. A lot of bit are different, right? So. You don't know what you don't know. We hear so very often, why don't you want to run your credit to see exactly what's going on there? I've been working on my credit. I'm, I'm moving forward.
Speaker: I have a, I have a six 20 [00:47:00] and I just want to get a little bit better so I can get a better interest rate. Well, that's wrong. You have opportunities to be able to purchase at a lower credit score, right? There's, there's much room for opportunity there. So that is the number one rule. Go to your nearest VA homeowner, home home lender who is vetted and have really worked with veterans and figure out your plan of action to be able to utilize your VA home loan entitlement.
Speaker: If you do not your guessing and you do not know. What is the actual circumstance or plan of action that you need to partake in to move forward into a home?
Speaker 2: Absolutely. Yeah. And because you talked about the whole fact of the income and the credit score being a barrier for veterans to purchase a home, but why [00:48:00] there even.
Speaker 2: Looking to get their credit score up. They should be making sure they're maximizing their VA benefits. You know, are you adequately being compensated for what you encountered during your service time? You know, ask those questions, apply. Learn more about increasing your VA benefits, whether it's just through the monthly compensation, you know, you may have been fortunate enough.
Speaker 2: Where not a lot of things transpired during service where you know, mentally everything is fine. You've been seeing your professionals, everything is great there. You don't have a lot of physical ailments or things, and you may be maxed out at 50% service connection, and that's okay. However, are you.
Speaker 2: Maximizing all the other benefits. Do you have your life insurance? Right? Did you transfer from the service group policy to the [00:49:00] SGLI policy? You know, all of those different things that is going to help sustain your family long term. Are you using any kind of voc rehab programs to get additional certifications to be able to further.
Speaker 2: Your skills for additional income. So it's not just a monthly compensation. There, there's a lot of other factors that you need to do. When we talk about maximizing your VA benefits,
Speaker: they're simple things, right? Are you 10%? Are you still paying a funding fee? And you, you, you get in it get 10%. That means you're, you're still paying a funding fee and you were stationed in Afghanistan.
Speaker 2: Shouldn't be paying a funding fee.
Speaker: I think you should be awarded a a lot more than that. That's neither here nor there. What, what we're saying is get the help that you need and get the help that you deserve, but also get the vetted help that you need and deserve. But beyond that, let's make sure that if you are trying to, uh, [00:50:00] maximize your va uh, VA home loan entitlement, that could be a a, a area where.
Speaker: You can actually have so many different strategic plans and tactical plans to use that you're just not, you're just not deploying. Okay. So if again, you need any assistance and be able to create a a, a firm strategy that's gonna get you into your home where you're not gonna need to utilize a FIFA year mortgage, contact us because it's coming.
Speaker: Okay? It is not something to, you know. To focus on now, but what you need to focus on is the security and, and, and stability of you and your loved ones.
Speaker 2: Well said Kenneth. Thank you for watching, like, comment, and subscribe, and always prepare to compete. We are out. [00:51:00] Peace.
