Need to Keep House Payments Low? Try a 50-Year Mortgage

From Yahoo! News -- With home prices still heading north even with a slight slow-down, some banks around the country are offering 50-year mortgages. Here is an excerpt from the article:

"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."

Further in the article:

"The 50-year mortgage also signals that the cooling real estate market is heating up competition among lenders.

"Mortgage lenders are getting craftier to get the attention of consumers," says Anthony Hsieh, CEO of LendingTree. But, he says, "The consumer needs to slow down and understand the product."

Two issues to keep in mind: A borrower with a 50-year mortgage builds equity very slowly. And because rates on the loans are adjustable, borrower's monthly payments could rise.

Still, the 50-year isn't considered as risky as an interest-only loan or a mortgage that lets borrowers pay even less than the interest."

To read the entire article, please go to this page on Yahoo.com.

Good luck and make it a great day!

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