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The 50-year mortgage is here...

Discussion in 'The Lounge' started by cbbr, May 12, 2006.

  1. cbbr

    cbbr 1 ton status GMOTM Winner

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    There is no place on Earth that would be worth it to me. Link here. Comments?


     
  2. tiger9297

    tiger9297 1/2 ton status

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    Sounds like waaaaaaaaaaay too much interest to me. But watch in this "finance happy" world we live in people will jump at it.
     
  3. Cricket

    Cricket 3/4 ton status

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    That sounds like the main reason it's being offered up.
     
  4. Leper

    Leper 1/2 ton status

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    If you got the 50 year one and paid extra when you could, that money would go to principal. This is good for people who's income is not steady all year long. Commision people could pay their payments like normal and if they had extra money, they could pay more towards principal. I know this would require a dedication that most people seem to lack these days, but it could happen.
    The same thing applies to people that could probably swing a 15 year mortgage, but decide to get a 30 year one, just-in-case. They pay several extra principal payments each month and the mortgage ends up lasting around 15 years anyway, but they hav a safety net if something happen financially.
     
  5. gjk5

    gjk5 3/4 ton status

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    Ditto.



    I've been in the mortgage industry for 12 years, I think it's a good thing. You can afford a different payment when you're 32 rather than 22, but by the time that ten years elapses, that same house will be much more expensive. A lot of folks are going into it now trying to think ahead as to what they "will want" and "will be able to afford" down the road. I think it's a viable alternative to the ARMs and even worse, the negative amortization loans going on out there. We are already doing a significant amount of 40 yr loans and I would much rather put my clients in those than an ARM that would have the same payment (temporarily).

    In addition, minimal additional principal payments can knock that down to a 30yr in no time (relatively).
     
  6. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    Japan used to use multi-generational loans... not sure if they do anymore. Wouldn't it be great to turn 18 and be stuck with loan payments on grandpas POS run-down 300 sq/ft condo in the hood?? yikes.

    j
     
  7. chevyfumes

    chevyfumes Court jester

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    I think Korea still does that,not sure though???
     
  8. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    really? I hadn't heard about the Korea thing... makes sense though, they are a pretty small country too. I thought California was over crowded... Japan has 4 times the population of CA on about the same amount of land. yikes. No wonder a tiny patch of dirt costs a million bucks. :grin: You sure as hell ain't gonna find an acre for $23,000 like Corey did. :thumb: ;)

    j
     
  9. 79k20350

    79k20350 3/4 ton status

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    An Acre WITH A HOUSE!:D:crazy:
     
  10. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    exactly. You couldn't get an acre in Japan for $23k even if it was nothing but dirt.. and the former site of a nuclear waste storage facility... and by an active volcano... and a flood plain... and a fault line... and... :thumb:

    j
     
  11. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Cool! I'm gonna get a 50 year mortgage for a $5000 house.
     

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