Would 40 Year Mortgages Fix the Problem?

[@LowellHoldorf]

Similar to the $25,000 "credit" for first time home buyers, in that they still can not buy without the required down payment. That buyer credit does is not realized until months later (next tax return) after the purchase. It does not bring in more buyers.

[@LowellHoldorf]

The 40-year mortgage still requires a down payment (15%-20%?), so it does not bring in more buyers. Perhaps reducing or eliminating the down payment would be a better plan? Whoops - that was already tried I guess (Obama administration) and threw the whole housing market (and economy?) into a tailspin. Banks win, but only until the money supply runs out, meaning the resident no longer makes the payments (abandons the property!?). I love that Eli states that all these folks are really just "renters" their whole life!

[@TheMarketMoment]

Good question! It should be explained in the article, link in the description, but I believe the idea with the 40 year mortgage is it would have lower interest rates and a lower downpayment (hence why its 40 years and not 30) but it does seem like a bad idea all things considered! Thanks for the comment!