Sunday, May 21, 2006

Who Needs 50-Year Mortgages?

Yes, you read right, 50-year mortgages!

As a reference, in December only 14% of people could afford a median-priced ($548,430) California home with 20% down.

While 40-year mortgages account for 5% of all home loans, Statewide Bancorp in Rancho Cucamonga, California introduced a 50-year mortgage in March of this year. So far 220 applications have been taken. The downside is very slow equity growth and it is adjustable.

Read more about it in this Detroit Free Press article.

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