White House’s 50-year mortgage proposal has one notable benefit, but some drawbacks

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    1. It does if your goal is to return to Middle Ages Oligarchic landlords serviced by impoverished Surfs

  1. Most of the rest of the world doesn’t have long term fixed rate mortgages. Fixed rate mortgages creates all kinds of weirdness in the housing market especially when rates change. The period of near zero interest rates and nearly free money was not normal.

    I have seen studies that one of bigger things that distorts the housing market is the mrrtgage interest tax deduction. It has been proven to inflate housing prices by as much as 20% as people take on this subsidized debt. It encourages stratification of the housing market where well monied buys are encouraged to trade up to every few years. It also is a regressive tax where the richer you are the bigger the break you get, so the little guy never wins. If you want to reform the housing market, phase out the mortgage exemption starting at the top end over the next 10 or 15 years.

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