Good Bye to the 30 Yr Mortgage?

[beachFool]

http://www.nytimes.com/2011/03/04/b...?pagewanted=2&_r=1&partner=rss&emc=rss&src=ig

"Fannie and Freddie also make ownership more affordable by allowing borrowers to repay loans with fixed-interest rates over an unusually long period. A person who borrows $100,000 at 6 percent interest will pay $600 each month for 30 years, compared to $716 each month for 20 years.
The 30-year loan first became broadly available by an act of Congress in 1954 and, from then until now, the vast majority of such loans have been issued only with government support"

 

[Beach Runner]

We actually bought a home in 1980 with a 12% fixed-rate loan. We didn't get an ARM because we were afraid rates would go higher. Dumb. Thankfully we sold it at a nice profit in 1989. But the 12% rate made such an impact on us that we got fixed-rate loans for the 1989 home and our beach home. And dumber. I could kick myself because my friend financed her beach home with an ARM, and her monthly payments have dropped a bunch. And yet dumber on our part.

 

[pmd8]

An interesting view on mortgages

Go to Housing Market News for an interesting read.

I'm sure many people here will concentrate more on the intangibles of home ownership, but he makes a lot of sense.

 

[Matt J]

We actually bought a home in 1980 with a 12% fixed-rate loan. We didn't get an ARM because we were afraid rates would go higher. Dumb. Thankfully we sold it at a nice profit in 1989. But the 12% rate made such an impact on us that we got fixed-rate loans for the 1989 home and our beach home. And dumber. I could kick myself because my friend financed her beach home with an ARM, and her monthly payments have dropped a bunch. And yet dumber on our part.

One word:

refinance

 

[Matt J]

I keep waiting for the magical 50 year mortgage to hit the states. Some friends of ours just signed their 50 year note in Germany for a 3 bedroom condo under 1500 square feet. Once the kids hit 16 they'll have to make a choice to sign on or lose the family house.