Okay. Its not for everbody but this piece from the UK is an interesting read. And since a lot of trends do begin on that side of the 'big pond' you never know if there's another twist of the screw left in the already tightened mortgage market. Wonder if my Mortgage Guru, Chris Hahn has any thoughts on this one? (see comments in sidebar)
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Hey Geno...I read in Japan, where real estate is far more expensive, they use generational mortgages that span 100's of years. Can you imagine sharing your home with your inlaws and grandparents???? These innovative financing options are helping people finance homes they otherwise couldn't afford or qualify to own. That said I think they are beneficial and make sense at times, however buyers need to know exactly what they're getting into. At least with a 52 year mortgage you presumably pay down the principle, albeit not much initially. This is a little less risky than an Interest Only or Negative Amortization loan. Cheers, Chris
ReplyDeleteMortgage is made up of two French words, "mort" meaning death and "gage" mean debt. Basically it means "in debt until death." A 52-year mortgage would certainly "live" up to that! :P
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