Posted on: 14th Jul, 2009 09:58 am
are there 40 and or 50 year mortgage's???
yes, I think its definately
so theres a 50???
fixed rate mortgages (frms) usually amortize over 15 to 30 years, but recently 40 and 50-year frms have gained popularity in the high cost metropolitan areas.
lenders are using 40-year fixed rate loans to make the monthly payment more affordable. with a 30-year interest-only home loan you already have a lower monthly payment.
also, a 40-year fixed rate mortgage (frm) will have lower rates than the 40-year io, unless the latter is adjustable rate. but why would anyone need an arm with interest-only option for 5 to 15 years and up to 35 years remaining to amortize with a fluctuating payment? this truly makes no sense, not even with a refinance on mind. 40-year frms will have higher rate than the 30-year frm and a 40-year io will have even higher rate.
a 50-year fixed rate mortgage seems to make no sense - if you are 35 and you buy a house with a 50-year fixed rate loan the loan will be repaid when you turn 85. what is the point of that?
50-year mortgages help build equity and avoid interest only loans.
for costly areas such as california, a 50-year loan may help avoid an interest only loan as payments will be lower compared to a standard 30-year fixed rate mortgage and you will still build equity. 40-year fixed rate loans are gaining popularity in california, anyways.
on the other hand, interest only mortgage loans discourage home buyers from building equity even though paying principal is a viable option for io loans. also, option arms with their minimum payment option even get you further in debt if not used properly.
a 50-year loan is a great way to acquire a home and build equity in a high cost area. given that 25% of the new home mortgages in california are 40-year loans it is possible that the 50-year mortgage makes quite a hit.
lenders are using 40-year fixed rate loans to make the monthly payment more affordable. with a 30-year interest-only home loan you already have a lower monthly payment.
also, a 40-year fixed rate mortgage (frm) will have lower rates than the 40-year io, unless the latter is adjustable rate. but why would anyone need an arm with interest-only option for 5 to 15 years and up to 35 years remaining to amortize with a fluctuating payment? this truly makes no sense, not even with a refinance on mind. 40-year frms will have higher rate than the 30-year frm and a 40-year io will have even higher rate.
a 50-year fixed rate mortgage seems to make no sense - if you are 35 and you buy a house with a 50-year fixed rate loan the loan will be repaid when you turn 85. what is the point of that?
50-year mortgages help build equity and avoid interest only loans.
for costly areas such as california, a 50-year loan may help avoid an interest only loan as payments will be lower compared to a standard 30-year fixed rate mortgage and you will still build equity. 40-year fixed rate loans are gaining popularity in california, anyways.
on the other hand, interest only mortgage loans discourage home buyers from building equity even though paying principal is a viable option for io loans. also, option arms with their minimum payment option even get you further in debt if not used properly.
a 50-year loan is a great way to acquire a home and build equity in a high cost area. given that 25% of the new home mortgages in california are 40-year loans it is possible that the 50-year mortgage makes quite a hit.
Hi Mamasman,
Do u get answer for your query?
Any other thing want to know
Do u get answer for your query?
Any other thing want to know