50 Year Mortgage
By: Thomas OKeefe
As of late there has been increasing talk about mortgage terms in excess of 30 years. Until recent years the 30 year mortgage was the longest financing duration you could elect for purchasing a home. With rising interest rates and housing prices (especially in urban areas along the east and west coasts) at an all time high there has been a lot more interest in 40 year mortgages and in some cases a 50 year mortgage.
These extended term mortgages will lower your monthly payments making it easier for people to afford a more expensive home however it will take much longer to develop any sort of significant equity in the house you purchased.
With a 40 or 50 year mortgage you are over time spending a lot more for your house than you would have with a 15 or 30 year mortgage. Obviously a mortgage of only 15 years will allow you to pay off your home a lot faster however it will require a much larger monthly payment. In addition to the equity advantages of a 15 year mortgage it also (in my opinion) forces the buyer to purchase a house that's more within his or her means. Purchasing within ones means is always a good thing considering the number of oversized McMansions sprouting up from coast to coast.
Whichever mortgage you choose, especially before buying or refinancing with a 40 or 50 year mortgage, it is very important to research all your options and to discuss them with a trusted mortgage broker and financial advisor.
Tom O'Keefe is an the founder of Refinancing Mortgage Info which is an extensive directory of mortgage brokers and mortgage companies.
Article Source: http://EzineArticles.com/?expert=Thomas_OKeefe
Tags: mortgage
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