40 year mortgage payment calculator

In recent years, the mortgage industry has been an explosion of new loan programs. One of them is the 50-year mortgages. The question is whether you should use it to finance your new home.

25 years ago there were limited possibilities for financing, if you want to buy a property. They had the 30 and 15 years mortgage loan options. She also had a good credit, low debt and a stable work history. Well, these days have the option of the horse and wagon. There are so many loan programs available that you are in a pretty bad way not to support the financing. While there are many programs, not all of them are worth for.

The 50-year mortgage is a new animal is in the mortgage loan market. Few lenders offer, and for good reason. I would like to call these loans lifer. You are literally obligation to pay a monthly payment for the rest of your life. Yes, the monthly payment is less than with a normal 30-year loan, but not really in the long run. Suppose you live to 80 years old, you would have paid so much interest at the time the loan was paid, you have purchased could be five more houses!

The obvious answer to the long life of the loan is refinancing. Most people enter the loan with the idea that they will refinance after a couple of years. Yes, it can happen. On the other hand, you have to loan to value ratio must be considered. It is difficult to refinance, if you have little equity in the property. With a 50 years loan, your payments over five years, with little or no equity in the home. It could be estimated, but then again it might not.

At the end of the day, 50 years of mortgage back programs are usually not a good choice for most buyers. If anything, you should try to go with the shortest duration possible to minimize your total interest over the term of the loan.

Sergio Haros is with Great Western Mortgage - income not stated doc loan borrowing solutions.