The only solution for homeowners: refinancing at 50 or 60 year mortgages?

[crgarcia]

Many troubled homeowners who must make payments of, say, $8k per month.

Yet, they only can realistically pay $3k.

The only solution is to refinance, at as low interest rates as posible, even if it takes 50 or 60 years to pay mortgage completely.

 

[ucf_student]

maybe a big balloon payment for last payment in year 50....

 

[Eliot Hosewater]

Didn't the Japs try 100 year mortgages like about 20 years ago?

 

[Compulsive]

Quote from Eliot Hosewater:

Didn't the Japs try 100 year mortgages like about 20 years ago?

Yeah, and to qualify you had to have family members (sons/daughters)

 

[Trader666]

Or live within their means. Maybe even rent if they can't afford to buy. What a concept :eek:

Quote from crgarcia:

Many troubled homeowners who must make payments of, say, $8k per month.

Yet, they only can realistically pay $3k.

The only solution is to refinance, at as low interest rates as posible, even if it takes 50 or 60 years to pay mortgage completely.

 

[drsteph]

Quote from Compulsive:

Yeah, and to qualify you had to have family members (sons/daughters)

Well, encourages positive population growth, I presume.

However, can the child legally remove themselves from the obligation to repay since when the assumed the debt they were under the age of majority?

 

[monee]

Don't think 50 year mortgage would make much of a difference in the payment.
Look at the amortization schedule of a 30 year mortgage.
The payment is only $690.51 lower with the 50 year mortgage.

1,000,000 loan amount
6.5% interest rate
30 year term
$6320.68 payment
904.01 principal / 5416.67 interest

1,000,000 loan amount
6.5% interest rate
50 year term
$5630.17 payment
220.50 principal / 5416.67 interest

 

[Tums]

Quote from crgarcia:
Many troubled homeowners who must make payments of, say, $8k per month.
Yet, they only can realistically pay $3k.
The only solution is to refinance, at as low interest rates as posible, even if it takes 50 or 60 years to pay mortgage completely.

The Japanese have been doing it for a long time... buy a house now, and let your grand children to pay offf the mortgage.