ELI5 - how does reducing mortgage rates help lower the cost of homes? Everything I’ve watched seems to point to the opposite happening (increasing housing prices).
300,000 thousand dollar home financed at 8% means you will pay 24,000 the first year in interest. Over a 30 year mortgage that home will cost you 600.000 dollars more or less. Financed at 3%, first year mortgage is 9000 so even the home cost the same (300,000) with the interest rate lower the cost of the home would be less over the 30 year mortgage. Simple as I can make it but it is more complex!
Thank you. I understand amortization, the point I’m getting at is how will this not lead to more inflation? Lower rates will increase demand in a market that’s already low on inventory. The rules of supply and demand do not appear aligned with Trumps strategy here. Don’t get me wrong, I’d crawl through a pool of monkeypox faggots to vote for Trump. But this particular piece of his housing plan has me stumped.
It needs to start with forcing multinational corporations out of the single family home market, and then making them divest their properties. Yes, thats a big government move, but what the fuck choice do we have when the mother fuckers are buying up everything to turn into rentals so that we will own nothing and be happy?
I suppose we can enter Elon's new Box House. It looks pretty impressive for about 60 grand less slab. We gonna see what he has in mind if they don't blow the world up first!
ELI5 - how does reducing mortgage rates help lower the cost of homes? Everything I’ve watched seems to point to the opposite happening (increasing housing prices).
300,000 thousand dollar home financed at 8% means you will pay 24,000 the first year in interest. Over a 30 year mortgage that home will cost you 600.000 dollars more or less. Financed at 3%, first year mortgage is 9000 so even the home cost the same (300,000) with the interest rate lower the cost of the home would be less over the 30 year mortgage. Simple as I can make it but it is more complex!
Thank you. I understand amortization, the point I’m getting at is how will this not lead to more inflation? Lower rates will increase demand in a market that’s already low on inventory. The rules of supply and demand do not appear aligned with Trumps strategy here. Don’t get me wrong, I’d crawl through a pool of monkeypox faggots to vote for Trump. But this particular piece of his housing plan has me stumped.
It needs to start with forcing multinational corporations out of the single family home market, and then making them divest their properties. Yes, thats a big government move, but what the fuck choice do we have when the mother fuckers are buying up everything to turn into rentals so that we will own nothing and be happy?
I suppose we can enter Elon's new Box House. It looks pretty impressive for about 60 grand less slab. We gonna see what he has in mind if they don't blow the world up first!
There's plenty of lower cost options for homes now. There's homes that Sears sold that are still standing. Converted vans, tiny homes, modular homes.
Remember that Trump will build more cities. That would lower the high costs of living in a major city.
maybe I missed it, but I wonder where the 'freedom cities' will be?
sounded like the western US maybe?