Home Buying in 92336>Question Details

Ken Craig, Both Buyer and Seller in 92336

Is there such a thing as a 50-year mortgage?

Asked by Ken Craig, 92336 Sun Feb 22, 2009

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There is all kinds of mortgages depending on your situation ,please first get qualified then look into different options ,HENA MARTIN BROKER 760-251-2868
0 votes Thank Flag Link Sat Jan 26, 2013
I believe so, but why would you want one? You would end up paying so much extra in interest, that you might end up twice as much as you originally would for the house. A 30 year loan is most common, but your best option, is actually a 15 year loan. Sure, you pay more a month, but you own the house sooner, and don't rack up a ton of unneeded interest!!
0 votes Thank Flag Link Tue Jun 26, 2012
At one time I did see a 40 year mortgage in Canada. I Do not know about now.

Why would you want a 50 year mortgage? for a normal 30 year mortgage you are more then paying double the home price when all the interest is paid.

Another issues is we are seeing hints that even the 30 year mortgage may go away. Why? the average home owner lives in their home 7 to 10 years now. So really only a 15 or 20 year amortized mortgage is all that is needed.

Good Luck
0 votes Thank Flag Link Sun May 13, 2012
I get cold sweats just contemplating 30 straight years of mortgage payments?

Home buyers may notice a new kid on the block: the 50-year mortgage.

Some mortgage lenders see the idea as an alternative to "interest only" loans and a tool to shrink those monthly obligations.
Essentially you'll be able to buy a more expensive home than you could qualify for otherwise."

Some consumer advocates and financial professionals worry that buyers who need to stretch payments over 20 more years are coveting too much house.

A 50 year mortgage still is not building net worth, It's just keeping a family in debt longer."

A 50-year plan is better for the borrower than an interest-only or payment-option adjustable-rate mortgage. In an interest-only mortgage, the minimum monthly payment means zero is being applied to the outstanding balance.

A payment-option ARM can be worse -- sometimes the minimum monthly payment doesn't even cover the interest accrued that month. You could make a minimum payment one month and find the next month that the outstanding balance grew.

While the 50-year fully amortized mortgage certainly means a slower rate of repaying the balance, at least the balance is being reduced, not remaining stagnant or increasing.
0 votes Thank Flag Link Sun Feb 22, 2009
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