And now... the *50* year mortgage
Mortgage lenders, facing tougher competition and tempered interest in the wake of the current borrowing climate, have come up with a new product. You can now pay off your mortgage in 50, yes 50 years. Although only 5% of you have 40 year loans, banks know that many are all about the monthly payments so as rates go up, this is one way to keep them low for you all (even though you'll have a very difficult time building equity.)
From the article on CNN.com:
"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, the report said.
"If you're going to be there for more than five years, you're gambling," Marc Savitt of the consumer protection committee for the National Association of Mortgage Brokers told the newspaper. "You don't know what interest rates are going to be. I wouldn't do it."
The report of the new 50-year loan comes as the signs mount that the nation's real estate market is cooling."
