now that we live longer..Long Term Mortgage

prosaver

seen this
Long Term Mortgage
maybe this would get the country going again.

Advantages of a Long Term Mortgage

A long term mortgage can be very handy under some circumstances. For instance, if you are planning on buying property with the intent to renovate it and then resell it, this type of loan would actually allow you to minimise your expenses and monthly payments, during the renovation period. Another situation would be when buying a rental property; while you have tenants you pay extra on your monthly payments, and in those in-between months, you just make the low regular payment.

A long Term Mortgage could allow you to get a larger house than you could otherwise afford.

Disadvantages of a Long Term Mortgage

A long term mortgage can work against you. The added interest has already been discussed, but another major consideration should be the value of the house itself. Forty or fifty years down the road, what will the house be worth?
wouldnt really matter if you just bought it to live in and what will the housing market be like. While these are unknowables, you should take a moment or two to think about it.


If you should decide to go with a long term mortgage, be sure to compare it to several other offers. This gives you a degree of flexibility as well as the opportunity to choose the best offer. Also, be sure that there are no early payment penalties so that you could pay it off early if you are able.

opinions4u

Christ, we've got interest only mortgages blighting the lives of people who don't think further than the cheapest monthly payment.

We really do need to focus on encouraging people to borrow for shorter terms (such as 15 or 20 years) rather than a default 25 years or even longer.

prosaver

opinions4u wrote: »

Christ, we've got interest only mortgages blighting the lives of people who don't think further than the cheapest monthly payment.

We really do need to focus on encouraging people to borrow for shorter terms (such as 15 or 20 years) rather than a default 25 years or even longer.

whats wrong with that?

dunstonh

Mortgages were historically 25 years because after around 22-24, the difference that is made in the monthly payment is very small for the extra length of the mortgage. Mortgages have been available on 30-40 year terms for decades. Some use them but when you look at the cost, its not worth it for most.