Your housing director has proposed something that has enraged your MAGA friends, which is this 50 year mortgage idea. - It's not even a big deal. - It's not even a big deal. Well, it looks like just based on the reactions on social media, [00:00:17] a lot of Americans thought this 50 year mortgage proposal was a big deal, and they didn't like it. Because think about it, the average age of a home buyer in the US is now 38. If you take on a 50 year mortgage, [00:00:33] there's pretty significant likelihood that you're going to die before you pay off that mortgage. We're going to get into some more numbers in just a minute. But honestly, the, full video that we're about to show you is even harder to watch. So let's take a look at that as our starting point, [00:00:49] and then we'll get into the nitty gritty. Housing costs are still out of reach. Another thing that your administration is trying to tackle on many Americans, the average age of first time home buyers are now up to age 40, which is sad for the country. [00:01:04] - You and I grew. - Up inherited that. Look, you have to understand. But let me get to the question, though, because your housing director has proposed something that has enraged your MAGA friends, which is this 50 year mortgage idea. So a significant backlash, calling it a giveaway to the banks [00:01:20] and simply prolonging the time it would take for Americans to own a home outright. - Is that really a good idea? - It's not even a big deal. I mean, you know, you go from 40 to 50 years. And what it means is you pay. You pay something less from 30 that some people had a 40 and then they have a 50. [00:01:39] All it means is you pay less per month. You pay it over a longer period of time. It's not like a big factor. It might help a little bit, but the problem was that Biden did this. He increased the interest rates. And I have a lousy fed person who's going to be gone in a few months. [00:01:56] So that wasn't a good moment for President Donald Trump. It really wasn't the unwillingness to really present himself as a leader on this issue. I mean, he ran a campaign that really purported to care [00:02:13] about the human experience here in the United States, really cared about the affordability crisis. Remember, Donald Trump is the guy who put on a McDonald's uniform and pretended to pass out fries at a drive thru window because he's a real fighter [00:02:31] for working class Americans. But his big solution, or at least his administration's big solution to the housing crisis, to the affordability crisis, is just making loans longer. Not a good moment and not a good answer if you ask me. [00:02:47] You might disagree. And if you disagree, write in. I'm curious what your comments are on this, but as Ingram alluded to, Trump's proposal was so unpopular that it has been universally criticized by just about every prominent right winger you can think of. [00:03:03] Let me just give you a little taste. Here are a few. Glenn Beck, founder of TheBlaze. Steven Crowder, host of louder with Crowder Representative Marjorie Taylor Green, which at this point should be unsurprising because she actually seems to care about the affordability crisis. [00:03:20] Representative Thomas Massie. Alex Jones, host of Infowars. Kevin O'Leary. Laura Loomer, whose opinion on anything just doesn't really matter to me at all. But nonetheless, she's part of the group. Tim Poole, host of Tim. Cast. [00:03:37] Christopher Rufo, the conservative activist Matt Walsh, host of The Matt Walsh Show. I mean, these are some of these people, by the way, are I mean, they're obviously not lefties. They're all right wingers. But these are usually the types of people who provide cover for corporate greed. [00:03:55] And in this case, they're like, yo, 50 year mortgage. Not a good look. That is not what we're looking for here. Now, when you look at the math, you can understand why so many conservatives don't think a 50 year mortgage is a good idea. First and foremost, you're likely to die before you pay it off. [00:04:11] And kind of. It's like the same as renting. I mean, I guess the one good thing about having a mortgage, as opposed to having to pay your landlord rent, is that a mortgage isn't going to shoot up in cost randomly out of nowhere. Whereas in a lot of parts of this country, a landlord can decide to increase [00:04:29] your rent as much as he or she wants and you just have to deal with it or move. So I guess that's the one positive thing of having a mortgage, even if it's a 50 year mortgage. But let's get into the numbers here. Because remember, owning a home used to be one of the main ways [00:04:46] working class Americans were able to build wealth in the US. Not no more's. So take a $400,000 home with a 20% down payment and a 6.22% 2% mortgage rate. Freddie Mac's estimate for the 30 year last week, with a 50 year mortgage, [00:05:04] the homeowner would pay about $200 less per month than a 30 year term on the loan's principal and interest. That sounds good, right? Nice savings there. You save a couple hundred dollars. Why not? Here's why not. Over the course of the loan term, the owner would end up shelling out about [00:05:23] $335,000 more more in cumulative interest compared with a 30 year mortgage. The banks like that, though. The banks really like that. I mean, they can make more money off their mortgages [00:05:41] if they switch to 50 year mortgages or at least offer up 50 year mortgages. A homeowner with a 50 year mortgage who sells after ten years would walk away with about $38, 000 less in equity than if the owner had used a 30 year loan, assuming the same [00:05:57] rate for both the 6.22% and, according to the Wall Street Journal. The Trump administration. Trump in particular, is now very furious with the guy who tried to sell us all on the idea. His name is Bill Pulte. He is the Federal Housing Finance Agency director. [00:06:16] And here's what would happen if, like anyone with a working brain were approached by Pulte with this proposal. I would laugh in his face. I'm not president. I'm not a genius. [00:06:32] Okay, I think I have average intelligence, if that. So if anyone came to me and I had any position of power, and they were trying to get me to promote the idea of a 50 year mortgage, I'd be like, oh, no, we're not doing that. That's embarrassing. [00:06:48] But Trump apparently has difficulty with agency. You know, he has difficulty fulfilling the role that he was elected for, which is the role of a leader, the president of the United States. He needs people to tell him what to think and what to say. [00:07:04] And if the public doesn't like it, well, then it's not his fault. The buck doesn't stop with him. I guess the buck stops with Bill Pulte. On Saturday evening, Bill Pulte arrived at President Donald Trump's Palm Beach Golf Club with a roughly two by five poster board in hand. [00:07:25] The graphic of former President Franklin Roosevelt appeared below. 30 year mortgage and one of Trump below 50 year mortgage. The headline was Great American Presidents. That's all it takes, folks. [00:07:40] Hand Trump a proposal that includes the line Great American president, and he'll do it. He won't think about it. He won't analyze it. He won't consider the fallout or the backlash. All you have to do is compliment him enough [00:07:55] or Make him think that doing this will be good for his legacy, and he'll do it. And he did do it. I mean, he proposed it, of course, and then he got the backlash. Now he's mad about that. Roughly ten minutes later, Trump posted the image to Truth Social, which we [00:08:11] shared with you on yesterday's show. And now, reportedly, the administration started getting backlash to the idea as soon as the Trump post went live on Truth Social. An anonymous source familiar with the situation told Politico the thing that [00:08:27] became clear from this latest episode, if it wasn't already clear, is that Bill Pulte doesn't know the first effing thing about how the mortgage markets operate. After publicly humiliating the president, who, if you ask me, [00:08:42] publicly humiliated himself by not thinking for himself with his moronic 50 year mortgage plan, it's safe to assume that his days are numbered. Yes, because, look, don't get me wrong, Pulte is an idiot and should not be employed in the role that he is employed in for the Trump administration. [00:09:00] Full. Full stop. But at what point does the American public expect the president of the United States to take responsibility for his actions? If one of my producers makes a mistake in the production of a story. [00:09:16] I'm not going to come on this show and attack them as if I'm not the executive producer. I have a leadership role, and that leadership role means the buck stops with me. So that mistake is my mistake. [00:09:32] It's no one else's mistake. It's my mistake. And in this case, we're talking about the president of the United States, who, is blaming others for his inability to think for himself. It's seriously wild. [00:09:48] Anyway, great American president, am I right? Every time you ring the bell below, an angel gets his wings. Totally not true. But it does keep you updated on our live shows.