So Keith, tell us about those and how to use them responsibly.

In recent years, more restrictive underwriting criteria and changes to tax laws have curtailed a lot of the concerning uses of home equity that contributed to the housing market crisis that, you're right, began almost 20 years ago.

Now, lenders are more vigorous in vetting borrowers who now need solid credit and manageable debt-to-income ratios to qualify.

Uh, back in the pre-crisis days, it was commonplace to be able to borrow up to 100% of the value of the home, or in some cases even more, including your first mortgage, and when property values declined, borrowers found themselves underwater very quickly.

Today, it's hard to leverage much beyond about 90% total loan-to-value.

Now, that leaves a little cushion against the risk of a downturn in home values, something that's actually happening in some housing markets, at least compared to post-pandemic inflated peaks.

Now, a change in the tax law back in 2017 also removed at least some of the value of using your home equity for other purposes.

Keith, what is a reverse mortgage, and who would benefit from it? And why is it such a red flag?

Can you tell us about those and what the difference is?

Well, pre-qualification is all about a working ballpark estimate of what your, what mortgage your income will support.

Now, often this is done, this calculation is done by realtors or sales associates so that they can help define the price range of properties you may be able to afford so that they can take you out into the marketplace.

A pre-approval goes one step further.

You'll actually place a mortgage application with a lender and provide necessary credit, income, and debt documentation.

From these, and subject to verification and updating, a lender can issue you a conditional commitment so that you can know with great certainty that you qualify for the financing you need in order to make offers on available properties.

Now, pre-underwriting goes far deeper into this process.

If you mess with your finances between the time you get that pre-approval letter and the time you wanna buy a house, you could blow the whole mortgage.

What do you think?

Well, I mean, that's definitely true.

The longer term does help stretch borrowing capability to a degree and might be enough to see a borrower get an opportunity that they otherwise might not have had.

Now, working, for some working numbers, uh, from the National Association of Realtors quarterly existing home price data for the third quarter, my calculations show that for a borrower to buy the median priced home at $426,800 with a 20% down payment, and factoring for insurance and taxes, that they'd need an income of $112,000 a year using a mortgage with a 30-year term, but $105,000 using a 50-year term.

Now that could be very helpful.

I mean, it's not exactly a game changer, but definitely enough to get some of those more marginal kind of close, almost make it borrowers into the game.

Now, if the 50-year mortgage becomes reality, do you think it will become popular too, or will it just sit there as an option that virtually no one takes?

Well, I think, like adjustable rate mortgages, there'll be a certain percentage of the marketplace that would be attracted to a longer-term 50-year mortgage.