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| *Loan,banking and credit>>>mortgage loan |
Are any banks or mortgage companies doing 40 or 50 year loans? |
Are any banks or mortgage companies doing 40 or 50 year loans? Banks- 40 YEAR Mortgage Companies - 50 YEAR All of the rest of the answers are true. Currently I'm working with someone and it's a good way to keep your payments down until you can afford to get into something else. You just need to be in this program for two to three years then you can refinance a get into a different program Hope this Answers your question! I know they were test marketing them in a few states but they haven't mainstreamed it yet last I heard. There are some 50 year loans in California. Basically 50 years loans are a fancy way of marketing interest only loans. Technically the do amortize, but you pay so little principal in the first few years that it might as well be interest only. Also unlike 30 year loans the rates on these mortgages are not fixed. I have heard of this trend, but I know of nobody who has a mortgage termed at greater than 30 years. The benefits of this are simple: lower monthly payments for the borrower, and more profit from the loan in the long run for the lender. The costs are also simple: it takes longer for the borrower to get out from under the loan, and he'll pay more in interest, and the lender has to wait longer for the loan to "turn over" into a profitable investment. I imagine there are two primary obstacles for this to hit the market mainstream: (1) Approval by the Fed, (2) If it's beneficial enough for both lenders and borrowers so that lenders can offer them and so that borrowers can take them. In other words, there must be ample supply AND demand. To sum: I don't know of any banks doing this, but we'll see. why would you want a 40 to 50 year loan? I cannot even comprehend this. If you are strapped for operating capital, how about working with an interest only loan until your situation improves. If this is for the purpose of real estate investment then forget it. If it wont cash flow in 12 to 15 years, then you dont want it. i read there is a company that does 50 year loans in CA...the 40 year loans have been out since last august....i just missed them when i bought my crib. |
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