It was a privilege to represent Gulliver’s Travel on the naming voyage for the Celebrity Xcel. It was
a gorgeous night, somewhere in the Atlantic, and the conversation turned to real estate. Three
travel advisors, two plus one’s, and me. The conversation ALWAYS turns to real estate. Today’s
topic was affordability; which led to the 50-year mortgage.
So, is a 50-year mortgage a good idea?
Short answer—maybe. In 25 years of selling real estate, I’m constantly reminded that everyone’s
situation is different. A 50-year mortgage is NOT the answer for a borrower to get a lower
payment if they otherwise qualify for a 30-year loan.
When might it be the answer?
Only if you are committed to the area for the long term! And…
- An upcoming guaranteed job promotion will equal higher pay. Be DISCIPLINED, and pay down
the principle. - One spouse isn’t on the loan, but makes money and is willing to contribute. Be DISCIPLINED,
and pay down the principle. - Borrower has income which doesn’t increase their borrowing power. Be DISCIPLINED, and pay
down the principle.
Noting that rate information and program details are still unknown, John Dillon of Vandyk
Mortgage says,“While it may slightly ease the barrier for first time buyers, it adds an
exorbitant amount of interest to the loan. Buyers who utilize a 50-year mortgage to get into
a home, should look to refinance into a 30-year loan as soon as possible.”
The Verdict
Explore all options and pick the one that’s best for you. Remember, renters don’t build equity.
Happy Thanksgiving!
Go Deacs, Tori
Berkshire Hathaway HomeServices Carolinas Realty
Tori Boysen
Broker
336-345-3499
tori.boysen@bhhscarolinas.com
toriboysen.com
