Experience with a 50 year mortgage?

Question

I know this is a new product and I have already read all of the articles (please don't post them!). I want to know if anyone out ther has gotten one.

I said I already read all the articles. I already know all the down sides. I want to hear from people who might have one!

Sorry, that' "snot" very nice of me... I just hate it when people don't address the question.

Answer 1

50 year mortgage is 50 due in 30, it's still going to come due with a balloon payment in 30 years. It's going to allow you to buy more house than you would otherwise, but that's not necessarily a good thing. I work in the mortgage industry and have seen a lot of these close lately. They aren't HORRIBLE, there is going to be a premium charged on the interest, and it's questionable whether or not you should be buying something you need a 50 year amortization to pay off, BUT if you have your finances under control, some reasonable savings, are maybe just starting out and have a REASONABLE expectation of significantly increased future earnings OR are buying a property you do not intend to keep for very long, maybe just 2-5 years, I'd say it's a decent way to go. I think true repayment terms pretty much top out at 40 years nowdays. The 50 due in 30 came about to make homeownership possible for people in high cost areas, ie, California, the Seattle area, ect. It was not concieved as a typical product in moderate or low cost areas.

Answer 2

I would NOT ever recommend anyone get a 50 year mortgage. You will never get it paid off and if by chance you do, you will have paid so much in interest that you forfeit any gain you might get from selling the property. Never, ever do anything over 30 years!

Answer 3

Not me...I wouldn't want to spend an additional 20 years paying interest.

Answer 4

You're quite snotty, considering you're asking for help from strangers.