Good article on the costs and benefits ...
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Would it lower monthly payments?
Extending the length of a mortgage is meant to ease monthly payments and broaden access to homeownership. In theory, those savings could amount to a few hundred dollars each month, but that's not guaranteed.
Because longer loans expose lenders to greater risk, they generally come with higher interest rates. That's why 15-year mortgages are currently at 5.5%, compared with roughly 6.2% for 30-year loans.
If rates were the same on a 30-year and 50-year mortgage, a typical homebuyer putting 20% down could pay about $250 less each month with the longer loan -- but would pay far more in total interest over time.
Is buying or renting a home the better option?
If 50-year rates were higher by a similar margin to the gap between 15- and 30-year loans, the monthly savings would shrink to around $60.
"A savings of $150 to $200 isn't really fixing the problem," Dan Frio, a mortgage adviser and host of "The Rate Update," told NewsNation on Monday.
Monthly payment at today's median existing home price of $415,200, assuming 20% down at current interest rates, according to Fannie Mae's mortgage calculator. Calculation doesn't include taxes and insurance.
- - - 15-year fixed mortgage (at 5.5%): $2,714 per month (principal and interest)
- - - 30-year fixed mortgage (at 6.2%): $2,034 per month (principal and interest)
- - - *50-year fixed mortgage (at 6.2%): $1,798 per month (principal and interest)
- - - *50-year fixed mortgage (at 6.9%): $1,973 per month (principal and interest)
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Lots more in the article ...
clown et al leftist
=LIKE THE BBC where top execs are resigning because of being caught..finally...of editing coverage of J6 to make DT
sound like the way you and the other scum suckers wanted
to believe.
google it
I effing dare you.