50 Year Mortagage

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Lajazz947

LoanSafe Member
Oct 28, 2009
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Has anyone heard about a 50 year mortage?

WF says they are toying with the idea but I think that it will be if rates go much higher. I will use this info in my battle to modify.

I know it will be interest only for 10 years but I only want to be here 10 anyway then sell. Besides the interest deduction will help.

Thoughts?
 

Moe Bedard

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Staff member
Loan Safe Mortgage
Aug 10, 2007
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Yes, I have heard of the 50 year mortgage and some lenders are already offering it. However, I have never seen a 50 year amortized loan modification. Maybe in the future or you can be the first one.
 

just_me

LoanSafe Member
Sep 14, 2015
643
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The 50 yr mortgage was part of the predatory lending offerings back in the hey day. It amortizes over 50 years, reducing payment by not much but a little. They had balloons at 30 years. Meaning, not much was paid off and they made a killing on interest for anyone that didn't refinance. Guess what? These were hard to 'refi out of' when the market collapsed, especially since they are only offered by predatory lenders. Some states have made balloons illegal, or at minimum, define them as predatory.
 
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OneHugeMess

LoanSafe Member
May 30, 2016
597
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Wells Fargo was one of the lenders offering 40/30 Loans (40 Years Amortized over 30 Years, with a Balloon/Bullet Payment for the rest of the amount) and 50/30 Loans. Honestly, in that situation, I don't understand why a borrower wouldn't just go for an Interest-Only Mortgage instead, but I digress.

I'm told overseas, they have multi-generational mortgages, that can go up to 90 years. But... in the reality of things, payments don't really go down that much between a 30 & 40 year. Just the amortization slows down dramatically. And if someone is trying to stretch their budget that much, they probably shouldn't be purchasing the house in the first place.
 
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just_me

LoanSafe Member
Sep 14, 2015
643
63
28
On 50 yr amortization, principal is barely moves until year 25. At 30 year balloon, payment is around 90% original principal.

Yes, not much difference from an interest only loan. Both require sell or refinance.

Intergenerational loans? I consider that 'debt peonage.'
 
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