Friday, April 28, 2006

Announcing: 50-Year Mortgages!



I'm surprised it took this long:

Bankrate.com: "50-year Mortgage Debuts"

Sign. Me. Up.

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— Posted by Michael @ 12:11 PM








9 Comments:
 

I want one of those multi-generational mortgages like they have in Japan, except I want to skip payments for the current generation (i.e. mine).

 

A 50 year morgage. Umm... isn't that just renting?

Frugalforlife
Queercents

 

In India, the mortgage document may be 50 years old. Legal validity is 13 years for court purposes.There is nothing new in it.The property gets tranferred to the last 1st class heir in the generation.It may be delayed due to land consolidation and other legal formalities too.But in normal situation,it may raise suspicion why the land was not transferred in the mortgagor's name.Is there anything beyond it?If the mortgagor provides sufficient evidence why the transfer could not be done ,say in case of a joint property,will you not accept it?50 years is less than a man's life span and the property may be in the name of grand father not transferred yet in the name of mortgagor for one reason or other.But the credit period,repayment schedule continues and the mortgagor can not just pass on the responsibility till he is alive.

 

In India, the mortgage document may be 50 years old. Legal validity is 13 years for court purposes.There is nothing new in it.The property gets tranferred to the last 1st class heir in the generation.It may be delayed due to land consolidation and other legal formalities too.But in normal situation,it may raise suspicion why the land was not transferred in the mortgagor's name.Is there anything beyond it?If the mortgagor provides sufficient evidence why the transfer could not be done ,say in case of a joint property,will you not accept it?50 years is less than a man's life span and the property may be in the name of grand father not transferred yet in the name of mortgagor for one reason or other.But the credit period,repayment schedule continues and the mortgagor can not just pass on the responsibility till he is alive.

 

I'm gonna rush out and buy me some shares in that bank and get me some of that profit

Anonymous Anonymous
, at 11:43 PM, May 03, 2006  
 

wow. seems like a 50 year fixed might not bw wholly nuts... but 50 year ARM? I'd rather put a contract out on my first born... well I kind of would be. The point of a mortgage and home buying is to get some stability... an ARM for 50 years is the antithesis of this.

 

Hi,

Although I agree that the 50 year mortgage helps people afford more housing by dropping their monthly payments (as the amount is amortized over a longer period) it does however increase their risk. As interest rates climb, the monthly payments for these 50 year mortgages will also increase substantially faster than normal, hence increasing the risk. For example, if you could barely afford a house now, how can you afford higher monthly payment increases?

For more details with a concrete example with numbers, I welcome you to visit my latest article.

Regards,
Stephane Grenier
Founder
LandlordMax Property Management Software
http://www.LandlordMax.com
http://www.FollowSteph.com

Anonymous Anonymous
, at 5:08 PM, May 12, 2006  
 

If the mortgage cost the same as the 30 year in terms of fees and if they allow early payment without penalty, then I think 50 year mortgage is the way to go. If I had one I would just pay the most I can to the mortgage each month and when I have a crisis I would be able to pay the minimum which will be obviously much less than for the 30 year mortgage. In other words the 50 year mortgage is good since it would give me more control over my money.

I am thinking outside the box here.

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