Need To Keep House Payments Low???

Need to keep house payments low? Try a 50-year mortgage, from the USA TODAY, reports that 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 interest rates. Most big banks already offer 40-year loans, which account for about 5% of all home loans. So far, only a few small lenders are offering the 50-year mortgages. 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. 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 loans interest rate remains fixed. "If you're going to be there for more than five years, you're gambling," says Marc Savitt of the National Association of Mortgage Brokers. "You don't know what interest rates are going to be. I wouldn't do it."



http://www.usatoday.com/money/perfi/housing/2006-05-09-long-mortgage-usat_x.htm