50 years morgage! What do you think?

CNN Money has this very good article: "50-year mortgage hits the market":http://money.cnn.com/2006/05/10/news/economy/economy_mortgage/index.htm and I think the most relavent point is that most of these are fixed only for five years or so, and then they float, so if you are planning on keeping your home for longer than that, there is a lot of risk.

I wouldn't get near a 40 or 50 year mortgage unless I knew I could beat interest rates with my investments. Very few people can do that who aren't running their own hedge funds.

These loans are just a sign of the slowdown in mortgages after several years of record-breaking refinancings. The are getting creative. Here's a harsh view: "Low-income Borrowers Take on _Exotic_ Loans":http://realtytimes.com/rtcpages/20060608_lowincomeborrow.htm

anonymous, jdas: Thanks for both articles. Few things that I learned from these reading are very interesting. Once again, many thanks for your help. Will stick to the standard 30-yr.

Many thanks,
Sabino

50 year mortgages are great if you like to always refiance, since they are based on arm's. you gamble on a 5 year cycle. if the interest rates are down, you can stay with it, or else find another loan with a great starter.

Sure but just know it's a gamble, and don't use the smaller payment of a longer mortgage to buy more than you can afford. Also keep in mind that true refinances (not adjustments) only work when the interest difference is greater than the exorbitant new york closing costs.