Affordability Problem? No problem, the 50 year mortgage is here!

[Jeremy Horton]

Time to cut those monthly payments in half, just get a 50 year mortgage! Maybe you'll build some equity in retirement!

I gotta think they're coming out with the 50 year mortgage and I think it will be a hit - it's just a matter of time. Look at car loans - pretty sure they have 7 year plus on cars. Of course people will be upside down when they trade it in or sell (they SHOULD know this, yet they will still overpay for a depreciating piece of property). So of course the 50 year mortgage will be a hit. As long as you can make the monthly payments, it's a hit. Does it make things more "affordable" - of course - through financing terms. 

It'd be a huge hit with investors as well - if a seller agreed to finance the property for 50 years - who wouldn't take that? The cashflow would be there for sure. I bet people would actually pay MORE for the property given the 50 year term...

I just wonder what the restrictions will be - only for first time home buyers, only for "poor" people etc. I can imagine investors jumping on it pretty quickly especially if you can get a fixed rate for that time.

It's just a matter of time now...

[Mike Dymski]

Until we turn down/off the money printers, things (including houses) will continue to get more and more expensive (and a 50 year mortgage is money printing).