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

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Real Estate Forms & Armando Montelongo & Bellefontaine Real Estate

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

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Real Estate Webmasters

You can find my blog at ferociousfeline.com, I'm so cool I'm not even back linking myself!

50 year mortgages...interesting but no thanks. First they came out with the 40 year and now the 50 year?? This basically draws out the term so much that the payments are very close to an interest only loan.

On $200,000 @ 7%:
40 yr. payment- $1242
50 yr. payment- $1203
Interest Only- $1166

Its true that you are paying some principle, but what's the point? Most people who get mortgages tend to refinance anyways. If you are looking for the lowest payment, you might as well get an interest only loan. If you are looking to pay off your home in the near future, get a 30 yr. or 20 yr. My 2 cents.

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Kevin
klu@nationwidemortgage.net
Nationwide Mortgage
Toll free (866)427-7200

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.

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Mike
http://www.HousingPredictor.com
http://www.DestinFloridaRE.com
http://www.RealEstateDomain.com

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!

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Richmond Realtor

Richmond Real Estate Investor Association REIA

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

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Ali Mirdamadi
Branch Manager
Royal Financial LLC

The Loan Officer Database Forum

The Home Flipping Guide

Contributor and author to The Scotsman Guide National Magazine

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

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View Port Orange Homes
Daytona Beach Condos For Sale
Daytona Beach Real Estate

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.

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Ali Mirdamadi
Branch Manager
Royal Financial LLC

The Loan Officer Database Forum

The Home Flipping Guide

Contributor and author to The Scotsman Guide National Magazine

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.

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Real Estate Talk

Most of the 50 Year Mortgages are on an arm loan anyways, so its not like you would be keeping that particular loan for 50 Years, unless you like adjustable rates. Plus a 50 year mortgages means the amoritization is over 50 Years, but still due in 30. There's a huge ballon payment at the end. A 50 Yr. loan is primarily for people who are having a tough time making their mortgage payments, offering them a slightly lower rate than interest only, and keeping their payments close to the interest only payment.

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Kevin
klu@nationwidemortgage.net
Nationwide Mortgage
Toll free (866)427-7200