Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

50 Year "mortgages" Introduced To Prop Up Market

Recommended Posts

http://finance.yahoo.com/columnist/article/moneyhappy/4443

50-Year Mortgages: No Shelter for the Strapped

by Laura Rowley

Friday, May 19, 2006

You, too, can own a home in California -- with 600 easy monthly payments! Just get a 50-year mortgage! With any luck, you'll have paid it off before you die!
A few lenders in California recently introduced 50-year adjustable-rate mortgages. The headline on the USA Today story was: "Need to keep house payments low? Try a 50-year mortgage."
This may be the worst possible way to portray this marketing ploy from the slowing mortgage industry.
"I can't really find a viable circumstance where this product really fits somebody," says Keith Gumbinger, vice-president of the financial publisher HSH Associates. "
But desperation breeds innovation
."

Now they have given Gordon ideas on how to keep his Miracle Economy alive for a few more months!

Notice how cynical the US press are becoming. :)

Share this post


Link to post
Share on other sites

Similar mortgage swindles in Ireland have been a resounding success (for the banks)

http://www.finfacts.com/irelandbusinessnew..._10005705.shtml

An analysis of the Bank’s customer base revealed that opting for the 35-year rather than the 25-year mortgage term meant that First Time Buyers reduced their monthly repayment by €75 per month, based on average national mortgage of €212,000. In Dublin, opting for the longer-term mortgage meant that monthly repayments were reduced by €95, based on the average Dublin mortgage of €270,000.

Duh! No Sh1t. Are people really that thick that they cannot see they are just being enslaved? When are people going to wake up?

The long-term consequences of a 35-year term are not of concern to most of the First Time Buyers interviewed as most don’t envisage having the same mortgage / home for life, because they anticipate that they will sell the property in the short to medium term.

They may be right about selling in the short to medium term, just not necessarily for a profit. With this sort of muppetry around, it surely cannot be long before the bubble bursts and the property market is exposed for the total scam it really is.

Share this post


Link to post
Share on other sites

What's the problem with 50 year mortgages? We already have infinite mortgages (aka interest-only) over here.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.