Money Stuff: The Podcast Mouth Noises: 50y, ISS, HF
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Nov 14, 2025 Katie and Matt dive into the quirky world of ASMR before tackling the pros and cons of 50-year mortgages. They break down how assumable and portable mortgages could reshape the landscape for borrowers. The duo discusses the influence of proxy advisors on shareholder voting and challenges facing index funds and corporate governance. Competition for hedge fund talent heats up with gardening leaves inflating salaries. Finally, they ponder the potential of AI to expand the PhD talent pool and shift future research incentives.
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50-Year Mortgages Can Be Illusory Relief
- Spreading mortgage payments over 50 years lowers monthly costs but shifts most payment into interest and delays equity building.
- In supply-constrained markets, lower payments mainly raise house prices and erase affordability gains.
Long Terms Erode Equity And Increase Interest
- A 50-year mortgage can leave buyers with little or no equity for many years, making ownership resemble long-term renting.
- Spreading payments increases total interest paid and reduces the mortgage's role as a savings device.
Prepayment Option Is A Hidden Mortgage Value
- U.S. 30-year fixed mortgages are uniquely prepayable without penalty, creating a valuable implicit option for borrowers.
- Removing portability or assumability would force lenders to price that option and raise mortgage costs.
