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Who wants a 50yr mortgage!?
I hope your answer was a resounding NOT ME!
I assume the administration is doing anything to make housing more affordable, but this is not the way. I'll give you a few reasons why it is not a good idea. First, one might think the monthly mortgage payment would be much lower, it is not. The difference in monthly payment between a 50yr and 30yr on a 450k home price with 5% down is $313. Secondly, someone is now saving just a bit on their monthly payment and they've added 20 years to their term. The ability to build equity, especially after only putting down 5% is minimal. Third and final from me, the interest payment over the life of the loan just doubled. Using the same loan as above, the 30yr interest paid over its life would be $493,000, and the interest paid over the 50yr loan is $919,000!
With that out of the way, I was at a Guide mastermind last week. We all agreed that the next four months are a vital time to go house hunting if you know you want to buy soon, or know someone that wants to buy a home soon and is ready. There are lots of homes sitting on the market over 30+ days just begging for some action, and while the end of the year usually provides some activity, January is typically the coldest of months. An opportune time to strike.
I have a new listing going live tomorrow, 4747 A Pkwy, Sacramento, CA 95823. Check FB and IG for details on Thursday!
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