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50 Year "mortgages" Introduced To Prop Up Market

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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. :)

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


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.

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