What Does Everyone Think of 50-Year Mortgages?

Question

I think it a rediculous product. If you're looking at a 50 Year mortgage, you probably can't afford the property. I think the lenders are just trying to screw consumers with another way to drive them into bankruptcy.

Other thoughts?

N/A N/A · Answer

Yeah I do not see it available to anywhere else. I just have the 40yr.

It is the lower payment and fixed rate that make it more desirable than a 2/28 or 3/27. I am confident the payment is still lower on the arms though.

2/28 and 3/27 perform poorly in the market. Foreclosure rates on those have risen and loss will keep surfacing.

In most cases the adjustment for a 40 yr is .1-.25% so it is just a lower payment and a much more secure situation to be in that 2/28 or 3/27.

I am sure we will all see it and also a 50yr interest only stated fico, income, and assets... :-)

Jason Barnett · Answer

I haven't seen any 50 year fixed rate mortgages... so why would anyone choose this kind of loan over an ARM?  I haven't run the numbers... obviously you'll pay a huge amount of interest, but are the payments lower?  Are the rates lower?

Only in California  :lol: or at least I hope!

N/A N/A · Answer

It is renting...

But, it enables people to afford a home at a higher value. It increases a range down to lower incomes that cannot afford a higher mortgage on a 30 yr note.

I think it can generate a spark in the housing market. Although it is renting in a sense you do own the home. Your income situation changes and you pay more on the loan.

Investors can generate more monthly positive cash flow due to the decrease in payment.

A bi-weekly payment makes it look better..

Houses are nothing like cars. They appreciate. More house. I just do not think that it will end up like that. People will give them out on older homes and that will be the products downfall. House will.. well rust out... So.. Like a car in a way.

lol

Frank Adams · Answer

I agree with Pam! To me it's like the 5 year car loan, if you can't pay a car off in 3 years, YOU CAN'T AFFORD IT. If you can't pay a house off in LESS THAN 30, preferably 15 years, it's too much house for YOU.

all cash