50 Year Mortgages?

[legalhomeforms]

I have been hearing about 50 year mortgages, does anyone have any information on them? Pros & Cons?

[Auliya]

i did a really fast google search and found this article... http://mortgagenewsdaily.com/5162006...r_Mortgage.asp

[Mike Colpitts]

Yea Kevin! Interesting stuff the 50 year mortgage. Most of us won't live that long! First there was the 40 and now the 50. The rates are higher for both -- just another avenue for the lenders to make loans. But at least they're trying to come up with new products to keep things going. It seems to me that the loan companies kinda miss the point when it comes to doing mortgages of some types. Real estate markets have always been cyclical and they will always be that way.

[CafeMonkey]

I know a guy that makes 100 year mortgages. He loves it, and his clients love it too!

They pay pretty much interest only, and get a lower payment. They've been scared off by talk of ARM/Interest only, but love the longer term mortgages.

I say... If they know all of the issues, there is no deception or taking advantage of folks, why not!

[Rude Awakening]

Some of you guys are missing the point of the 50 year mortgage. Several years ago when the interest rates dropped, everyone wanted the lowest payments. People shifted gear towards ARM's (a lot of 2 yr ARM's at that) thinking that the mortgage rates would stay low. Well once they started going up everyone freaked out and well we all see what has happened. Payments have shot up, they cant refinance because the new rates are just as high now and they end up selling their homes.

40 and 50 year mortgages weren't intended for people looking into actually staying in their homes for that period of time. It's more or less for payment stability and security. Not only do you get a fixed rate that stays the same for how ever long you own the home, but the payments are also amortized over the respective years. Meaning that you get lower monthly payments (something everyone on a tight budget wants).

Hope that helps some of the perspectives

[Goknights]

just another marketing idea by lenders. Doesn't really have any advantages.

[Rude Awakening]

Kevin,

Would you rather pay $1300 on a 2yr ARM, or $1300 on a 40yr fixed?
Another idea by lenders? Yes. And they obviously come out infront no matter what you do. But unless you have enough to buy a house for cash, we have to deal with them.

[Real Estate Talk]

so theres a 50 year term mortgage out now? wow. Well that's only for people who are old and want to keep there house but can't afford to pay there payment anymore since they just got out of there fixed product and are now on an adjustable rate. And since the rates are on there way up they can't afford it so they must go on a 50 year term so they can afford there house and keep it for as long as they live. So that's what its for. It's not for everyone, so don't decide to hate it.

[starke]

50yr products are totally worthless (unless you are subprime-some value there).

I don't get the logic of a 50yr in the slightest. Waste of time IMO. Just do an interest only. People are going to refi any way.

Sub-primes, though, does make some sence. For DTI reasons, I can get them qualified into more home typically without going stated or a hit for I/O.

[freded02]

Sorry you Guys and Gals have given up on John and Jane Consumer! The 50-year Mortgage will NEVER be paid off!
We must adjust our thinking to figure out how to pay the mortgage loan off just like any other loan.... You pay interest for ever (50 Years).
Would anyone take a 50-year Credit Card Loan?
Fred@Mortgage-Freedom