Press Release Summary = Mortgage lenders are offering a new product to assist home
buyers in purchasing a home at an affordable monthly payment -- the 50-year
mortgage.
Press Release Body = Mortgage lenders are offering a new product to assist home
buyers in purchasing a home at an affordable monthly payment -- the 50-year
mortgage.
A recent report in USA Today, shows that a handful of lenders have started offering
50-year adjustable rate mortgages to buyers who need to have a low monthly payment.
Many banks offer 40-year mortgages, which make up 5% of all home loans in the U.S.
\"One of the biggest things in California is the high cost of homes. With rates going
up, there\'s demand from customers for longer loans,\" said Alex Diaz Jr., with
Statewide Bancorp in California.
Diaz continued to say that Statewide has already received around 220 applications
since introducing a 50-year mortgage in March.
The 50-year mortgage is an indication that the cooling real estate market is causing
more competition between lenders.
\"Mortgage lenders are getting craftier to get the attention of consumers,\" Anthony
Hsieh of LendingTree told USA Today.
Fifty-year mortgages come with some risk attached. A borrower with a longer than
average mortgage begins building equity at a slower rate. Because most fifty-year
mortgages are adjustable-rate, the low rates could rise given time.
Mortgage experts caution that the 50-year mortgage is best-suited for homeowners who
plan to sell the home after five years, before the interest rate adjusts.
\"If you are going to be there for more than five years, you\'re gambling,\" said Marc
Savitt of the consumer protection committee of the National Association of Mortgage
Brokers. \"You don\'t know what interest rates are going to be. I wouldn\'t do it.\"
Web Site = http://www.rateempire.com
Contact Details = RateEmpire.com, an Internet consumer banking marketplace.
RateEmpire.com is a destination site of personal finance, banking, investing, taxes,
debt management and mortgage rates. RateEmpire.com provides mortgage guides and
financial rates and information. RateEmpire.com also operates a financial portal #1
American Financial, found at http://www.1AmericanFinancial.com
2009
