The Carolina Contractor Show
The Carolina Contractor Show
Should You Say Yes To A 50-Year Mortgage? Pros, Cons, And Real Costs
The conversation starts with sweet potatoes and grandma-level stuffing, then pivots to the question stirring up homebuyers everywhere: would a 50-year mortgage help or hurt? We share the real math behind lower monthly payments, how amortization changes over ultra-long terms, and why equity can lag for years unless you get proactive. From belt-loop victories to kitchen-table budgets, we pull the debate out of theory and into real life.
We unpack who actually benefits from a longer term, how lenders will likely price risk, and why the lifetime cost may dwarf the short-term relief. You’ll hear clear strategies to make a long loan work in your favor: automate extra principal, aim for one extra payment a year, set refinance trigger points, and treat appreciation as a bonus, not a guarantee. We also tackle the costs no one can ignore—property taxes and insurance—and how they can erase your perceived savings even if your rate looks decent on paper.
There’s fresh context on 2025 credit changes, including how medical debt is treated and why nuanced underwriting could help qualified buyers who’ve had a rough patch. We balance the builder’s perspective with the buyer’s anxiety, explore market ripple effects if 50-year loans take hold, and draw a bright line between starter-home strategy and forever-home commitments. If a 50-year term is the only way to get the keys, we outline the plan you need to avoid paying for a lifetime: disciplined overpayments, honest timelines, and a clear exit or refinance strategy.
Ready to pressure-test your plan? Listen now, subscribe for more straight-talk housing insights, and drop your take: is the 50-year mortgage a smart bridge or an expensive habit we’ll regret?
Welcome to the Carolina Contractor Show with your host, General Contractor Donnie Blanchard. Donnie Blanchard, we need to ask a very important question this time of year. Do you have a favorite side dish at Thanksgiving?
SPEAKER_00:I don't have a favorite, but I'd have a favorite for this year, and it's going to be the favorite. I've been doing a not a low carb necessarily, but just trying to eat a lot cleaner. And of course, sweet potatoes seem to be the go-to superfood that actually still taste good. So I've been taking a potato peeler and trimming my sweet potatoes up, cutting them into little yam shapes, so circles, and uh toss them in olive oil. You season them with the right stuff, put them in the oven, flip them every, I say, 20 minutes, two cycles of 20 minutes, and when when I say delicious, they are amazing. A lot of other things involved, fresh garlic, some things like that. But um I saw a twist on that where they sprinkle feta cheese, cranberries, or maybe it's dried raisins. I think it's cranberries, but uh that with a um a walnut or an almond on top. Oh my word. I mean, that that's that's gonna be the go-to, and uh, I'm definitely gonna deliver that on Thanksgiving.
SPEAKER_01:You had me up to feta. I'm not a big feta cheese fan. I guess um there's some salads like a um pasta salad, feta works, but I'd have to try it. I I like sweet potatoes. You told me about that last week, I think, that that was your new jam that you were um baking sweet potato slices and stuff.
SPEAKER_00:Yeah. It's even good cold, dude. I uh I'll make an extra few chicken breasts, throw those in the cooler for the day. You don't have to stop for lunch, don't have to waste any money that day, and and you're eating very, very clean. I think I'm down one belt loop. Oh, nice.
SPEAKER_01:That's how men measure that. We don't do pounds, we do belt loops. Nah. Um love some deviled eggs, and uh you can have those any time of year, but something about having deviled eggs next to turkey and mashed potatoes makes them taste even better. So if you don't have them at your table on Thanksgiving, I'm questioning your patriotism to when we uh celebrated conquering this great uh continent.
SPEAKER_00:You know what I wish I had the most on Thanksgiving? What? My grandmother. I mean, they they just don't do it like they used to, man. And I I have you can read, you can go to the old cookbooks and give it your best callus try, but for some reason we just can't do it like they did.
SPEAKER_01:So my mom, I remember when I was a kid, like 10, she started the night before, and I don't mean like at 10 p.m., like at five, six o'clock at night. Hey, mom, can I help with uh getting stuff ready for tomorrow? She would give me some wonder bread, a whole loaf, and I had to take out every piece and break it into little teeny pieces and drop it back in the bag, and I was making the stuffing. I and everything she did was from scratch, just about. She damn near raised the turkey herself, defeathered it the night before. I mean, everything else she was handmade. She would go to bed at one or two in the morning and be back up at six, putting that turkey in the oven and working all the other sides. And so I agree a hundred percent. Back then, Thanksgiving was a a really big deal and it was a real big family thing. Technology has probably affected us that way. But even today, I'm assuming the same in your house, that kitchen becomes the HQ for the day.
SPEAKER_00:Oh, no doubt. And um, I love that. They don't make them like that anymore. And I think the Bible has some good verses that call that a virtuous woman. So uh hats off to all the grandmothers who who still have uh family members that remember them and are talking about them and and and learn something from them.
SPEAKER_01:And this is a Carolina contractor show, and one thing we talk about on this show is houses, and we've done lots of episodes where we've talked about the focal point of a house ends up being the kitchen because it's where the food's made, where you usually have your meals, and it's just that gathering point. And if you're like looking at updating a room in your house, it's why the kitchen is always a popular thing to update because we just gravitate towards there, and then if you got your mom or your grandma in there cooking, you can't help but come in the front door, hang up your coat, and unless there's football on, maybe, go to the kitchen and hang out there with a uh with a drink or help make food, and it's you stay there all day long. It's a I love that memory. Absolutely. So today we're not gonna talk about your kitchen, we're gonna talk about houses, and that's one of the things we we always talk about, but we're gonna talk about buying houses and and and mortgages. Uh, but I do want to direct you to the website, the Carolinacontractor.com. We've got all our past shows up there, uh, hundreds of them, literally. I've mentioned before that there are the average podcast in the United States has three episodes. We have like 300, and they're all listed by title, date, so you can go down the list, find a topic you're interested, and listen to it at your own pace and own time. Uh links to all of our social media sites, the Facebook, the Instagram, uh, the YouTube page. We put these shows up on YouTube now, so you can follow us there. Also, if you have a question about your house or a suggestion, or maybe a recipe for Thanksgiving, I guess that would qualify. You would click on the Ask the Contractor button that goes to Mr. Donnie Blanchard here on the show. He's a general contractor. Um, but the thing we want to tackle today was an announcement made. Was it even two weeks ago this announcement was made?
SPEAKER_00:I don't know that it's been an official announcement, but it's it's being thrown around right now. But yeah, something to the tune of two weeks. All right.
SPEAKER_01:The 50-year mortgage. That's what we're going to talk about today on the Carolina contractor show. Um I gotta say, right off the bat, I went kind of in Dave Ramsey mode. You know that look he gives when people call up and say, Yeah, I'm$478 million in debt, and he's like, Why are you calling me uh a 50-year mortgage? Um, and we just me and Donnie talked before the show. We're not gonna do good cop, bad cop, which uh I have to mention, Donnie doesn't think he's seen training day with Denzel Washington, right?
SPEAKER_00:Yeah, shame on me. I'm I'm I guess I'm not a big movie guy. I got my favorites, but um, I don't take the time, man.
SPEAKER_01:So I made a reference to Denzel Washington when we're talking about the show, like he'd be good cop, I'd be bad cop, talking about 50-year mortgage. And he kind of got the joke that I sent Denzel for those men out there who have seen the show, I mean the the movie near the end, where he's talking about King Kong and Pelican Bay. Um it kind of went over Donnie's head. Not to digress. We do want to talk pros and cons of the 50-year mortgage. It's kind of fluid. Uh there's not a whole lot of banks offering it yet, but this was announced as a way to alleve the housing crisis. And as you, Donnie, being in the trenches, so to speak, not only as someone who builds, but someone who's looking to help relatives find housing. This is a big issue right now, getting a finding a house and being able to afford the mortgage.
SPEAKER_00:Oh, yeah. It's on the forefront, front burner, however you want to word that, uh, of my personal life. And I've got two kids that I'm building houses for at the same time. And um, we didn't just arrive at that conclusion we were going to build them a house. We explored all the alternatives, and uh, it's really tough for a young person these days to to qualify for a mortgage, especially without a second person on that mortgage and especially without having a connection to some sort of land. I mean, what kid can afford to go out there and buy a$30,000,$40,000 lot, and you want anything in a decent area, you know, you're looking at a minimum of 20. And so uh I just think that uh where we are as a society, we're in a position where the older people are gonna have to help the younger people, and I just don't see any way around it unless this young person comes out of college swinging and lands a six-figure job. Okay.
SPEAKER_01:Here's my one thing about the this generational um younger generation bitching and moaning about boomers, and that's what it is. I've got now boomer fatigue, not from boomers, but from the the millennials. I have millennial fatigue because they're going, the boomers took advantage like they had some grand plan. The younger generations will get the advantages of the boomers when the boomers complete the circle of life and pass away. Those houses aren't gonna go poof and disappear. A lot of them will inherit so much wealth and so much property from um parents and grandparents, the millennials and exes will actually become the wealthiest generation ever. But short term, because that's gonna take 10, 15 years for that to have a big effect, short term, it's really hard to find a house, and you said it best. Not many kids are gonna come out of school, land a six-figure job to be able to get a house right off the bat. And a six-figure job ain't really gonna cut it right now because if you want to live in a particular area and you're not willing to commute, you're just not gonna be able to afford it. I commuted to Raleigh for 15 plus years, so I have a 2200 square foot house and it cost half of what it does just a couple miles outside of Raleigh. I was willing to do that trade. Not everybody can do that, and it's a lot harder now than it was you know, 20 years ago. Soapbox aside, 50-year mortgage. When you heard about this, Donnie, and you have relatives looking to buy, did that make you perk up a little bit and go, Well, hey, this could work.
SPEAKER_00:I mean, it did. I I I really just thought about it uh from a positive light before I knew the details, because you know, and at first before you read into it, 50-year mortgage, obviously lower payments, you're making homeownership uh a reality. I mean, there's a lot of people who can afford uh half the payment or not half, whatever, 60% of the payment if you're just doing the quick math on 50 year versus 30 year, but it doesn't work exactly that way. No.
SPEAKER_01:It's it it's it's not that simple, but uh I think maybe the best way to discuss this topic, Donnie, is let's go back to the training day thing. You're gonna be uh Ethan Hawke's character, Jake. You're gonna be the uh trying to have the heart of gold. I'm gonna be Denzel. Okay. Um so we could maybe hit some pros and cons. Um name me quickly, based on some of your research, a couple pros to a 50-year mortgage.
SPEAKER_00:Well, I think that um the very first thing is that that so many more people will actually qualify. And there's no secret uh that that owning a home is better than renting all day long. 30, 50, 100-year mortgage, it doesn't matter. You're you have uh homeownership in your corner, and so you're gonna build credit from that standpoint. You have an investment that's gonna constantly go up in value. I know my house has gained in what 12, 13 years, it's probably gone up anywhere from two to three hundred thousand dollars in value, and I don't have any other investments that have gone up that aggressively. And um, you know, you have the option to uh you have the option to to uh improve your your investment. So you can remodel your home, you can change out things to make your home worth more along the way, but I think that just home ownership versus the alternative of renting is what the biggest deal is in the whole equation.
SPEAKER_01:I agree a hundred percent. The the one thing I will tell people when you get your first home is you don't have a phone to pick up and call the super when something's leaking or you got to fix a problem. You'll learn a lot of maintenance stuff too, which I'm a big proponent of. But yes, owning is much better than renting. Anybody that tells you renting is better with all things being equal uh is a liar. My biggest number one problem, then I'll come at you with a con, is uh it's fifty years. Um that is a long time, and that means you're gonna be paying, even if the interest rates were the same, you're gonna be paying 200% more than what the loan is. If the interest rate is higher, which it probably will be because of the length of the loan, you're talking about buying a house and over the by the time you'd pay it off if you kept it 300% higher than what the purchase price was or or the the loan was. That to me is just horrible finance.
SPEAKER_00:So I don't know how this applies to our area, but the median cost of the average home in the United States is four hundred and fifty thousand dollars, and which is insane to me. Um, but if we're using that four hundred and fifty thousand dollar mark just as a gauge for this, some of the scenarios said that you know it may drop your payment as much as three hundred dollars. So if you've got that mortgage and it's twenty seven hundred dollars a month, it's gonna drop it to twenty three hundred dollars a month, which I don't really see as a significant savings. And the the real end game is how much you pay if you were to outline, if you were to last the whole 30 or the whole 50-year mortgage, I want to say at 30 years you end up paying somewhere around$900,000, but at the$50, you end up going uh well over the$1 million mark. I want to say the figure was about$1.3 million. So you pay exponentially more to stretch that mortgage out another 20 years. That part doesn't make sense to me. Uh that being said, the average homeowner stays in their house for 12 years, and those are concrete stats. So if you just need a foot in the door for home ownership, you know, and the 50-year mortgage is the only way you can do it, then I I really I'm not opposed to that. And and that way you get in there and you sell it at the 12-year mark, make whatever money you're gonna make from the appreciation of your house, and you move on to the next one.
SPEAKER_01:Okay. Um, I'm gonna go all Denzel a little bit. Uh two things. For the first 20 years of a 50-year mortgage, you're paying interest only, so you're gonna need that house to increase in value to get any equity out of it. You some of the models show the equity wouldn't start building until year 30. Uh that's crazy to think about, but if it isn't a good location, you keep it up, it will give you equity just because the value of it after a few years, and in your case, you're talking 12 years, you should be able to pull out more than you put in, but you're right back to where you started. Hey, we bought this house, we owe$450 on it, and now it's worth$550. So we've we're making it simple. We've netted$100K. Well, where are you gonna move now? Is that problem been alleviated? Do we have more housing, or are you gonna just find yourself, well, now I got to buy this$800,000 home. I can put a hundred down. I'm gonna have what do I do? Get another 50-year mortgage? I'm 50 years old now.
SPEAKER_00:Yeah. I was throwing this around with my sweetheart, and she came up with a pretty good idea. She she adds an extra so many hundreds a month to her mortgage payment, and and that goes directly to the principal, and she mentioned to me, uh, you know, she said, why wouldn't that be a good idea? So I don't have any kind of calculator that I filled those numbers in online, but if you are in a position where the 50-year dropped your mortgage payment, say, you know, we don't know what the terms are going to be if this comes about, but I can't see that they're gonna not gonna make them favorable. But if if you put an extra$300 that you saved down towards the principal every month, and it it basically makes a lot of that um high interest go away. And that reverse amortization schedule that you mentioned, uh, you know, when you when you take a home loan out, you're paying 80% interest, 20% principal in the beginning, and as you get towards the end, that flips to 80-20 principal versus interest the other way. So uh just that amortization schedule that they come out with, if they do implement the 50-year mortgage, is going to be a huge part of this thing if making making it make sense or not, whether it's realistic.
SPEAKER_01:I want to back up a little bit, Donnie. You said something about, you know, where you it could lower their monthly payment of 300 bucks. That's 75 bucks a week. It's actually probably a little less, probably like 70 bucks a week with 52 weeks in a year. If you can't cut 70 bucks a week out of your budget somewhere to make up the difference between having to get a 50-year loan and get a 30, that's a bigger issue because uh there's no reason. You can do it, you can find ways. You were talking about um taking your own lunch to work and things like that. Well the prices of going through a drive-thru, there's 10 bucks and Starbucks, and you know, you don't need eight streaming services. You uh and I'm not trying to s make it too simplified, like that's the problem. You can all do it if you cut your spending, but that 75 bucks a week is what you're saying is the difference between having a 30 and a 50-year mortgage. I don't buy that. Um and and that's what gets you in trouble. The other thing is people um pay a little bit extra a month, and sometimes the goal is to pay the equivalent of one month's extra mortgage on principal only every year. So great idea. I'm afraid a lot of people will get a 50-year mortgage and say, look, hun, this is all we do. We throw an extra 250 or 300 bucks a month at principal only, we'll be paying it off in less than 30 years. But guess what? In real life, 99.9% of people won't end up doing that. They'll still end up spending that extra cash because they don't want to put it on the house. So they're gonna end up with a 50-year mortgage. Um, you had a stat, the average uh new home buyer age, what was that?
SPEAKER_00:Um it's 40 years old for the average new home buyer. And just to tell you that we've been barking up the right tree when we complain about the way things are going. Just five years ago, the average age was 33 years old. So in in five years' time, it's gone up seven years, meaning we're right. We're right. It it is ridiculously hard to buy a house now compared to what it was just half a decade ago.
SPEAKER_01:So buy your house at 40 with a 50-year mortgage. Tell me what happens if you're gonna stay there the whole time. How old will you be when the bank says, here you go, you own the house?
SPEAKER_00:Still eating ramen noodles at 88, man. That ain't cool.
SPEAKER_01:Yeah, so if you're buying a house, a 50-year mortgage and you're 40, I hope your plan is you're trying to build up that equity as quick as you can to maybe move out or maybe downsize by using that, say you you netted 100,000 and and and something like that. But that's gonna affect how long you have to work. It's gonna affect how much you can put in your retirement, it's gonna affect your retirement. Um, there's so many things. There I think you found out there is a good suggestion with this 50-year mortgage where they to get credit, they'll no longer hold um medical debt as a rating against your credit.
SPEAKER_00:That's that's probably the bigger news of all the things because we don't know what the terms are gonna look like on this 50-year mortgage if they implement it. So technically we're doing a hypothetical show right now, but the one thing that is in place is that uh they no longer go by your your credit score to qualify you for a home. So that is brand new in 2025. And the way that it was worded to me is that they they take into consideration the person. So if you've been out of work from an injury, you had a surgery, you're going through a divorce, and your credit took a hit, they don't just go by a straight credit score from the three the three big ones. But the other thing that was most important, pri well, second most important was that they don't consider your medical debt. So they encouraged everybody. The the stuff I read up encouraged everybody to pull a tri-merged credit report. So make sure it hits all three credit bureaus that the banks check. And if you have any kind of medical debt still showing on there, you can dispute that and it should disappear pretty quick.
SPEAKER_01:Yeah, and I and I'm perfectly fine with that because medical debts is a weird thing, how it hangs around, because sometimes you can make it disappear quickly with a couple phone calls, and it that's a whole nother show, which we wouldn't even cover because it's not our our forte. But uh, yeah, get rid of that. That shouldn't be it based on your job. I was thinking, um, you've got a son who's how old's Caleb? 22. 22. Mine's getting ready to turn 20, and I was sitting there thinking, what if they right now got a house and got a mortgage and they got a 50-year mortgage, and you'd be saying, You'll be 72 when it's paid off. And I'd be saying to my son, you'd be 70 years old if you stayed here. But we're also making an assumption that the first house is going to be the forever home, which is kind of a um, I don't know, it's like hallmarky. It's not really true. The chances of you buying your first home and it being your forever home is not likely it. So I guess the advantage of the 50 years, if you get it and you save that money that you're not paying on that monthly payment when it's time to sell, and if you've built some equity in it, we keep going back to$100,000 plus the$300 a month you're not spending, you could then actually get that forever home where you want it because you're just using a longer, it's kind of like the using revolving credit card, you're moving one debt over to the next for zero interest. Right. So you can try to finagle the system and and get some cash flow going. So I guess if you kept it, you said they move average within 12 years. Yeah. Okay, I could see doing that. And if the if my my son or your or your son, though I don't know why he'd be asking me, um, said this is my plan, maybe that's it. You should go into it with a plan written out. This is our plan why we're getting a 50-year mortgage. We don't plan on paying for this when we're 70 or 80 or flirting with 90 years old.
SPEAKER_00:Yeah, I mean, I just think back to what we said initially that it it's just a foot in the door to home ownership. And I I do believe that it won't be the end game. And as long as you can always refinance, that's kind of what everybody said, including us, when interest rates shot through the roof, we said, hey, it's never a bad time to buy because you can always refinance when times are better. But I guess the hope is that things, the interest rates will eventually drop. And uh I liked what you said a second ago, and I think that's my big delineation, whether or not I agree with this. And on one side of the fence, if you're building a uh starter house or a transition house and your job relocated you, but you don't want to stay there forever, who cares? You know, just get your foot in the door. Uh, I think the 50-year allows you to uh buy more house. So if you have the intentions of growing a family and you need more house than you can afford, maybe it opens the door for that, and then you're gonna sell it in five years, seven years whenever you move. It's not the end of the world there, but if you're settling down and it's your forever house, hopefully you're in a pretty decent financial situation if you're thinking forever. But uh that being said, I would I wouldn't consider the 50 year for a forever house in any case scenario.
SPEAKER_01:But you know, you like you also said, Donnie, point out you can always refinance. Uh my wife and I, our house was a 30 year, and a year uh with 21 years left on the mortgage, we refied uh down to a 15. So we cut six years out of uh the the mortgage and the payments only went up like a hundred and some bucks. So again, that was a better time to re-fi, and you know, we're under the the four percent. Oh now people are gonna hate me, call me boomer. Um so but if you got a 50-year mortgage, hey, maybe five years later, maybe six years later, you go to the bank and say, Yeah, we want to refi this down to a 30 or down to even a 25. You can actually re-fi to almost any amount of years you want to. Um use it as that, like you said, this gets you in the literal and proverbial door, front door of the house. You have it going, things get better, you move up in life and income streams increase. Hey, we love this house. We actually are gonna plan to stay here longer. Let's knock down the years of the mortgage because for every year you knock down, it's gonna be uh tens of thousands of dollars just in interest save. So imagine if you had 50 and at year 40 you knocked it down to a 30, or incredibly, say a 20 or a 15, you would be looked at as a genius by the time you pay off that house, and you paid off by the time you're 50.
SPEAKER_00:Yeah, exactly. Um, it's funny you say that in all my research the last couple days, and I've had this on every time I had a free moment just to learn as much as I could about it. And uh, we still don't know, like I keep saying over and over, we don't know what the terms are gonna be, but more than likely when you stretch out a mortgage for an extra 20 years, you're a much higher risk, and so there's no way for any financial institution to take on a higher risk without a higher interest rate. And they went on to say that a 50 is gonna be more interest than 30, but they also say when you cut it into a f down to a 15, then the interest rate goes down with the years as well. So it got my wheel spinning. I'm at year 14 out of a 30-year mortgage right now, and I called my lady at the bank and said, Hey, should I should I consider refinancing and changing this thing to a 15? I'm already almost at at the halfway point, and she shut it down real quick, man. She said, You're at 4%. So since you said what you did, I guess I'll be hated too for that. But I locked in at 4% and um actually combined two house mortgages for one. So I've got a really sweet deal going on right now. And she said that the lowest she could get with a 15-year mortgage is not is just below five right now. So I'm still sitting pretty.
SPEAKER_01:Yeah, there's no point. You can always pay extra payments on principal, and that's the same difference as uh changing the length of your mortgage or shortening it. But then again, most people aren't going to be that dedicated to go, honey, we can't buy this. You Eric, you can't have a Les Paul. This money needs to go to pay down principal on the house. Um a friend of ours in our church, she took care of the mortgage payments. And without telling her husband, she was paying um half a mortgage payment extra every month and didn't tell him until she came home one day and said, Hey, guess what? We own our house outright now. And he was like, How is that even possible? Well, for like seven years, she was doing a 50% uh payment every month just on principle. Bang, bang, bang, bang, knocked it out. That's that takes a lot of um discipline uh discipline exactly to do that. Um the other thing is even if this comes out soon, not a lot of banks are gonna offer it, let alone what the interest rate is gonna be. It's not like you're gonna go to every bank because a lot of them are gonna say, Man, we remember the last time we offered crazy rates and we're giving anybody money. They're probably gonna be a lot stricter on who they give money to, as you said, who they're gonna lend to, and they're gonna do it at a at a higher rate.
SPEAKER_00:Yeah, absolutely. You know what we're gonna bitch about when we get our house paid off? What? The taxes and insurance.
SPEAKER_01:I agree. Yeah. Mine went up because Wilson is building a baseball stadium. Somebody's got to pay for all the stuff they're doing. Uh, I got that letter from Rocket Mortgage back in April. It says, hey, by the way, want to let you know your insurance is going up and your property tax is going up, your evaluations. So we just want to let you know you're gonna pay$390 extra a month, and we didn't give you anything in return. At least you love baseball.$390 a month for not with nothing in return. They just said, hey, we're gonna do this now. So we did get a little discount, we redid our insurance, but the property tax, you know, you know, you're you're screwed out of that. Hey, last question, Donnie. You build houses. Uh do you think if the 50-year mortgages come out and it makes it easier for people to get houses, will that cause house prices to drop, or would they say, hey, more possible people to buy? Would it affect building? You know, would you get see a demand of building houses go up?
SPEAKER_00:Yeah, I I'm gonna say it's gonna be the almost the same, if not just similar, artificial inflation that we saw after COVID when everybody made a life change that figured out they could work from home, all of a sudden, you know, a different style house was in high demand, and you don't have to be in the middle of the city, you don't have to have the convenience of um of being close to an interstate. So I definitely think that if this takes a foothold, it it will create uh a major demand for for housing, especially in an area like where we are, the middle third of the state, everybody's moving here, so many businesses coming this way, and it's definitely gonna flip around what we just got under control. So it's a great thing that the house prices will go up, but in the big picture, uh I think the easy math just tells you what you need to know there. You're gonna get a little bit of a break on the mortgage payment, but you're gonna pay an extra hundred thousand dollars more than what the house is really worth. And that I don't know, but you would you would hope that the uh experts would think all that through and they have a plan in place, but it ain't always like that.
SPEAKER_01:All right, I can give you 30 seconds for this answer, and you can't answer it in 30, but see if you can. You have a magic wand, Donnie. You can do one or two things to help the housing shortage go.
SPEAKER_00:Hmm. I would eliminate closing cost. Builders like me can't uh offer programs like that similar to the big builders. So that that's a chunk right up front. That would help people uh on the front end, and I would offer 50-year mortgages with a low interest rate and figure out how to pay for it with tariffs.
SPEAKER_01:Hmm, that's pretty wow, that's deep and that's good. I like the idea someone floated of the transferable interest rate. Say you got a 5% rate on your house and you sell that house and it's a 50-year mortgage, the new buyer has the opportunity to buy it, they can put the different the equity amount into the loan. Obviously, the seller is gonna make some money, but then the interest rate from that bank, they'll say, we'll keep the interest rate the same. I know it's hard because of the credit issues or reports from seller versus buyer, but there was an idea of, hey, just keep the interest rate locked, let it transfer onto that house, and then people won't have to worry about, well, I'm not gonna buy now because it's too high, or I'm not gonna sell because I won't be able to buy another house in its place. So uh again, it'd have to be a magic wand.
SPEAKER_00:Yeah, for sure. But that's a great point, though.
SPEAKER_01:People just have to agree with us, and you know, this country would be a lot better if they just listen to me and you, but the board of building affordably. That's going to be the uh the after the show show. We'll we'll have a second show we'll be talking about. Listen to us, and things will go fine. All right. Well, I appreciate everybody checking out the show today. Again, hit the website, the Carolinacontractor.com. On the surface, I don't like. the 50 year mortgage at all. But uh you can give your opinion by hitting the website there and clicking on that asset contractor button. And um maybe you got an idea how to make housing more affordable. I know getting the government out of it, maybe reducing the red tape would help too. But yeah, let's instead of giving people a couple thousand bucks in a check that they're just going to get a iPhone with, let's apply it to housing or to the dead or well, we're gonna get into another show automatically. I'm sorry. I'm better step away from that. I'm just gonna say this. Thank you for tuning in. I think the 50 year mortgage on the surface is a bad idea. Donnie I'm I'm still up in the air. Yeah. Still up in the air. All right well maybe we'll have an answer next week and everybody can check that out and uh we'll we'll we'll talk or revisit this subject again on the Carolina Contractor Show. Want to thank everybody for tuning in and uh hope to see you, hear you and look at you next week.
SPEAKER_00:Thanks everybody. Love you guys