Need to keep house payments low? Try a 50-year mortgage
May
11
From USA Today,
Those struggling to afford a home may be wondering how long their mortgage payments can be stretched out.The new answer: a half-century.
A handful of lenders have begun offering 50-year adjustable-rate loans to buyers who need to keep payments low in the face of record home prices and rising rates.
Most big banks already offer 40-year mortgages, which account for about 5% of all home loans, according to LoanPerformance, a real estate data firm. So far, only a few small lenders have rolled out the five-decades-long mortgages.
Mortgage experts caution that the 50-year mortgage is best-suited for those who plan to stay in their home for about five years, while the loan’s interest rate remains fixed.
50-year mortgages? [SFHomeBlog]
